We explain what a business idea is and how it can be developed. We also explain its importance and examples.
The business idea must offer a solution or improvement to a social or environmental problem.
What is a business idea?
A business idea is a commercial proposal that involves a solution or contribution of value to problems in society or the environment. It is the starting point for the formation of a company and the establishment of its objectives.
- For example: create a free market space that encourages responsible consumption, using used clothing. It is a way to avoid the overproduction generated by the “fast fashion” industry, which is one of the most polluting and cruel industries on the planet.
The business idea becomes more concrete and realistic with the development of a business model, that is, by define how the company will be able to provide a solution or contribution with its commercial activitythrough goods or services, and how you will be able to generate profits to survive.
- For example: a digital platform that allows the exchange of used clothing. The service consists of connecting people who match your searches: a person who offers a certain garment and another person who wants to buy one of those same characteristics.
As the creation of the company is formalized, there are several steps to follow depending on the type of organization, the field and the market in which it will be developed. The business plan is a tool common to every company and used to give form to the initial idea and the business model. It fulfills the function of guiding and guiding the organization based on its objectives..
Key points
- A business idea proposes a solution or improvement that satisfies a need.
- It is the previous step to developing a business and consists of a solution to a social or environmental problem.
- No just baby be an original idea, but must provide a solution or contribute still change positive.
How to develop a business idea?
There are multiple ways to develop a business idea, but in general, you should answer questions like:
- What need does the product or service aim to cover or solve?
- What sector of society is the product or service aimed at?
- What is the differential advantage of the product or service compared to what already exists on the market?
- How do we want the brand to be recognized?
Some steps to follow to organize a business idea effectively:
- Detect a need. The idea arises when recognizing the existence of a need that could be satisfied.
- Identify the client. It is necessary to be clear about who needs to cover a need, that is, what public will want to acquire the product or service.
- Study the market. It is necessary to analyze whether there are direct or indirect competitors, measure what the strengths and weaknesses of the business would be, among other data that are part of the market research. After this stage, it may happen that the idea needs an adjustment or undergoes some modification so that it can be carried out.
- Structure the idea. It is necessary to design the organizational chart of the essential work team and list the resources required to implement the idea in the real world.
- Test your impact. It is useful to conduct a study to test the business idea, to check that it is realistic and sustainable. For example: In a “focus group” (or focus group) A group of people representing potential customers is brought together to ask them questions, observe their reactions to stimuli or discuss certain issues.
Importance of the business idea
The business idea is key to starting to project an organization. The most important thing is not only that it is an original idea, but that it provides an effective solution to an everyday problem or task and that it generates profits or is self-sustaining.
A business idea can be very innovative and eye-catching, but to be successful it must be able to facilitate everyday tasks, solve a problem or contribute to positive change. Otherwise, it will only be a good idea, without any concrete effects on people’s lives or the environment.
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References
- Resnik, J. (2022). Business idea: the key to your entrepreneurshipfrom: TiendaNube
- Braid, A. (2020). Business idea: definition, how to develop it and examplesfrom: AnaTrenza
- Nuño, P. (2017). What is a market study? from: EmprendePyme
- Conavalsi (2022). What characteristics should a good business idea have? from: Conavalsi