LMB BLOG BUSINESS ADVICE, TIPS AND SUPPORT
Section One - How to Come Up With Your Business Idea
Working out Which Business To Start!
Choosing a Business idea is the starting point of any entrepreneur’s journey. You need to ask yourself what skills and experience you have that could translate into a business start up. Some people consciously make the decision to start a business to leave the rat race behind or to have a side line and second income. For others it may happen by chance when an opportunity arises or you suddenly see a niche in the market. The truth is nowadays most niches are catered for, however with entrepreneurial insight and a look at the competition you can best decide how to enter your chosen market.
The most important question to ask is whether there is an existing demand for your product or services. Without demand, the best or most creative ideas in the world will fall flat. But first you must decide what it is your business will offer to its customers. and then you can determine if there is enough demand for the product or service to sustain your business.
In this first section read through the article summaries from quality articles we have sourced on the internet. We have also added tasks for you to do in your own time at your own pace. By the end of section one you should be ready to choose your business idea after considering the key issues.
The journey begins! Good luck fellow entrepreneur!
Special Thanks
A big thank you to the LMB Intern Team Sophia, Mary, Paulyn and Trisha who did the research for the first ten topics of the topic and then I added commentary and tasks. Well done team! Excellent work. We hope that many entrepreneurs, students, teachers and companies will find the Knowledge Base very useful for years to come.
Jamieson Hill, Content and Copywriting Manager, LMB
Article One: ‘Create Winning Business Ideas’
We kick off with the first article for section one which is all about 'How to Come Up With Your Business Idea'. As well as summarising the main points of the article, we also ask thought provoking questions to stimulate your own process of formulating ideas for your own business. At the end of each section, there are more in depth tasks to reflect upon the reading which you are now undertaking and a task to write an action plan for your future targets. This article summary is taken from the following website:
https://www.thebalancesmb.com/create-winning-business-ideas
For each article, we extract quotations and then explain in our own words the point the writer is making:
Read through the following summary points and take notes:
"Keep up with current events and be ready to take advantage of business opportunities"
The article recommends watching the news everyday to come up with a business idea for your startup. In consuming the latest issues and topics in the news you will see business opportunities. What's more you will see market trends, new ideas, news from industry and different sectors and see opportunities for business.
"Invent a new product or service"
It is suggested that by looking at the needs of the market for products and services which are not being supplied or are in short supply, that you can come up with a gap in the market for you to fill. The writer advises that you analyse the market sector/industry you are interested in and to ask 'how could this situation be improved?'.
This way you will find the target market that your new business will focus on. You can brainstorm a variety of ideas that might fill the gap in the market.
TASK
What are your initial ideas for the market sector you will focus on and any gaps in the market which your new business could focus on supplying?
"Add value to an existing product"
The writer advises considering other services and products which you can add to your original idea. Combining your main product or service with other products and services can expand your reach in the market. The example given is a local farm selling vegetables. They can add value by offering a delivery service for an extra charge.
TASK
What can you add to your product or service idea to expand your reach in the market? Make a list of ideas.
"Investigate other markets"
It may be that your chosen business idea is not necessarily best suited to the local market. The writer recommends that you look at the international market and investigate ‘foreign markets’. By researching the global market you can brainstorm some brilliant opportunities to sell your product and services abroad.
"Improve an existing product or service"
The writer talks about thinking about ways to improve the products and services you want to offer. The way to do this is to examine how the competition is doing this. Developing your base idea for products to offer a better service or version of your product could lead to increased sales.
"Jumping on the bandwagon"
The article describes ‘the bandwagon effect’ refers to ‘larger social trends’ whereby the market suddenly has high demand for a product or service due to trends. This sudden increase in demand may mean that the supply is not enough to meet the needs of the sector.
The example given is the high demand for facial masks during the Covid Pandemic. Lots of entrepreneurs jumped on the bandwagon and started cashing in on the demand. Of course, there is often a window of opportunity before lots of other businesses get involved, which means it is important to keep an idea on the news and trends to captialise on the opportunity.
TASK
Can you see any such opportunities in the market you are interested in? Make a list.
Inspiring Quotations From the Article:
- “Dream, think, plan - and you'll be ready to transform that business idea into the business you've always wanted.”
- “You know what they say about the person who builds a better mousetrap. That person could be you!”
- “You'll be amazed at how many business opportunities your brain generates.”
Source: https://www.thebalancesmb.com
Article Two - ‘To Pick The Best Business Idea, Determine Your Zone Of Genius’
The following article is from Forbes and was written by Doug Foley. It helps you decide what your area of expertise or genius is, so that you can choose the right business for your abilities and experience. We ask thought provoking questions to apply Foley’s advice to your business.
Article Summary
According to Doug Foley, business owner and author of the new book Breakout Blueprint, the secret to success is identifying the area where your zone of genius intersects with a business opportunity. Your business's potential is mainly dependent on your ‘zone of genius’.
1. “Finding Your Zone of Genius”
Foley uses this simple piece of advice from New York Times bestselling author Keith Ferrazzi, who wrote Never Eat Alone and Who’s Got Your Back:
“Call, text, or email at least ten people and ask, ‘What is the one thing in the world you think I’m best at?’”
Foley believes that by asking people in your life for feedback, the responses will be very valuable. It enables you to harness your ‘zone of genius’ i.e. the things you excel at and sets you on the ‘path to mastery’ to increase the value you and your business bring to the marketplace.
It is similar to the 360 degree feedback that is often carried out in the corporate world where a person asks for feedback from all the people they work with.
TASK
Try this activity out by asking people in your network what they think that you are best at. Ask at least 10 people and record their answers for research purposes. Be prepared to get negative feedback as well. Both positive and negative feedback are both useful.
.
2. Be the Surgeon, Not the General Practitioner
Mastery and specialisation in your chosen field are key to increasing the potential earning power of your business, says Foley. He gives the example of going to the doctor. When you get symptoms, you generally go and see your GP. Then the doctor checks you and if need be, they will send you for further tests and X Ray, a scan etc. Then the radiologist sends a report and if necessary you will be referred to a surgeon. Foley asserts that you must become the ‘surgeon’ in your field of business and be able to analyse situations and see what the solutions are to problems for your target customers.
3. “Now is the Perfect Time to Improve Your Skills”
Foley explains that your ‘zone of genius’ encompasses your innate abilities but you need to put in the ground work to develop and become a master in your sector. The difference between the corporate and entrepreneur worlds is that the corporate world has a ‘top of the ladder’ but entrepreneurship does not. It is different for each individual.
Foley cites the example of the global pandemic as being one of the greatest challenges faced by entrepreneurs. But at the same time, it has given a huge opportunity for people to ‘invest in themselves and their skill sets.’ When you identify your ‘zone of genius’ you can explore your skill set even more and work towards becoming world class in your chosen field.
TASK
What can you do to develop your zone of genius? How can you work on yourself to develop your skills to focus on being world class in your sector one day?
4. “Find That Sweet Spot for Your Business”
Foley claims that many failed entrepreneurs make excuses e.g. not having enough capital, lack of access to talent, or simply bad luck. But he says that often the truth is that they weren’t good enough. He says that you want to create a business that fulfils you and inspires you using your unique skills. If you combine your passion and knowledge, there is nothing to stop you from reaching the heady heights of success in your chosen market sector.
Quotations:
- “Entrepreneurs are “idea people.”
- “Everyone has natural talents and innate abilities.”
- “Your best asset is yourself—not a stock, bond, mutual fund, or piece of property.”
- “You must become the surgeon of your field.”
- “People are often rewarded for their expertise for one simple reason: their advice and decisions have greater consequences.”
POST-READING TASK
What is your Zone of Genius? Think about this in greater detail.
Write at least 3 things you are very good at. E.g. it could be an ability with languages, computers, marketing, finance etc. You can print this page out if you want to and write it by hand.
1.
2.
3.
4.
5.
Article Three: How to Choose The Right Business For You
In this article summary, we look at a great article by Sabrina Parsons. She is described as ‘ a successful Internet expert, veteran of several successful Internet ventures, and co-founder of her own consulting company Lighting Out Consulting. She is currently CEO of Palo Alto Software.’
Article Summary
“You have to know your business”
Sabrina warns against listening to people who tell you to start a certain type of business that has 100% certainty of success. Instead she advises that you choose a business which is focused on your experience, passions and skill set because there are no absolute certainties in business. It depends on your background and ability to run the business well.
“Follow your resume”
Sabrina advises that if you have many years of experience in a certain profession, starting a business in that sector offers many advantages. You can draw upon your talents and training, your network of connections and industry expertise to make the business a great success. You can also ask people you worked with about what they think is involved in running a certain type of business if they have experience in the same sector. Sabrina suggests considering your main skills, abilities and education/training to choose the right business doing something you are passionate about.
“Study”
Sabrina affirms the importance of spending time studying the business you are interested in, so that you don’t make business planning mistakes in the long run. Take time and don’t rush because in the long term it is better to be well informed.
TASK
What resources can you use to study your possible business ideas? Make a list and then investigate each one.
“Always test your business idea”
Sabrina outlines 6 very useful steps to take to test your business idea:
1. “Try it out”
She suggests learning about every part of the business and then put what you have learned into practice. Become an expert in your sector.
2. “Talk to entrepreneurs in the same field”
A very valid point that Sabrina makes is about talking to other small business owners for advice. Choose people that don’t mind sharing their experience and aren’t worried that you will be in competition with them.
3. “Evaluate whether you enjoy the work and excel at it”
She underlines the importance of starting a business which you enjoy because taking on a business in an area you’re not keen on will be hard work and potentially demotivating.
4. “Judge your ability and desire to handle every aspect of the business”
Sabrina affirms that it is important that you start a business which you are able to handle and ‘contribute to’ when things need to be done. It doesn’t mean that you don’t hire others to help you with areas of weakness, but overall you should have the ability to manage most aspects of the business.
5. “Determine whether the business has a solid chance of turning a profit”
Sabrina points out that you need to know within a few months of running the business that it is going to make enough money to make it viable. You need to breakeven and be sure that your overhead costs are covered in the first year. This is vital and should be part of your business plan.
6. “Evaluate the risk this particular business requires”
Sabrina asks entrepreneurs to evaluate the risks involved. She says that you shouldn’t give up if the business hits obstacles, and with a business strategy you will be able to plan for such risks. Mitigating risk is what every successful business owner should do by analysing the facts and figures in particular the financial data.
Inspiring Quotations:
- “It can be extremely rewarding, but first it will be hard”
- “Your passion and knowledge are the best places to start in choosing your new business.”
- “Even the best-laid plans can sour if you pick an unusually risky business.”
- “Always do best are the ones owned by someone who lives, breathes, and loves what they do.”
- “The buck will stop with you, and you alone will be responsible for all the good and bad decisions you make.”
Source: https://articles.bplans.com/the-right-business-for-you/
REFLECTIVE TASK
What did you learn from this summary? Write notes here to show what action you took in relation to the points raised:
1.
2.
3.
4.
5.
Article Four: Simple steps to choose the right business idea
Article Four is by Steve Nicastro who is a staff writer at NerdWallet, a personal finance website. We examine the three points that he makes and make suggestions on how you can implement his advice.
Article Summary:
1. “Focus on your skills, experience and passion”
Steve says that by focusing on your existing knowledge and experience you will learn quickly. He states that you don’t have to be an expert immediately, but by using your previous experience and training you will soon get up to speed in your chosen sector. In a similar fashion to the previous article, Steve recommends that you consider whether you are enthusiastic enough about managing your business because when you face challenges and obstacles it is that passion which will help you prevail.
TASK
Have you really got the passion to make your business succeed or should you choose a different idea?
Think about this question and make notes..
2. “Evaluate business-lifestyle fit”
Steve asks entrepreneurs to consider whether the business you are thinking about starting will allow you to still lead your ‘unique lifestyle. He says that a business that requires over 60 hours a week may not leave you the free time to lead the life you want to. Love My Businesses have a number of automated and fully managed businesses which may suit you if you don’t want to be hands-on. He also advises that if you hate being stuck in the office, then choose a business that can be run from anywhere in the world with a wi-fi connection, so you have freedom to travel.
TASK
Is the business you are thinking of suited to the lifestyle that you want to lead or will it impinge upon your life?
3. “Test your idea”
Likewise with Sabrina’s article, Steve stresses the importance of doing your research into the business idea before you launch. He suggests you ask yourself the following questions:
- “Is there enough demand in your market for the product or service you're offering?
- Are you able to cover the start-up costs?
- How will you set yourself out from the competition?”
TASK
Sit down and write a list of answers to the three questions that Steve asked. If you answer no to the first two, then you need to seriously consider whether your idea is a non-starter or not.
Finally, Steve highlights how vital it is to write a business plan with your objectives and your action plan of how you will achieve them. He states that the business plan will help you decide if your idea is viable.
Inspiring Quotations:
- “A solid business idea requires creativity, planning and soul-searching.”
- “Matching the business idea to your lifestyle can prevent burnout.”
- “It’s smart to write a business plan that details your goals and how you plan to achieve them.”
Article Five: How to Choose a Business Idea
In the article we read, Libby Marks, a CIM-qualified marketing expert, with almost twenty years’ experience working in marketing and communications gave solid advice on how to choose a business for you. Libby has worked for a UK National Charity and a leading Russell Group University. We analyse her points and look for ways you can implement her advice.
Source: https://transmitstartups.co.uk/guides/how-to-choose-a-business-idea/
Article Summary:
1 ”What sort of business suits you?
Echoing what has already been said in earlier articles, Libby states that you shouldn’t choose a business idea if you’re not going to enjoy it. Think first about what type of business you would actually like doing, rather than just because it is profitable or in high demand.
Libby asks entrepreneurs to consider these questions:
- “What are you interested in?”
She recommends that you do something that you love and then it will be fulfilling. Choose a business that you will be passionate about!
TASK
Ask yourself: What do you love and what are you passionate about? How can you turn that passion into a business idea?
- “Lone wolf or pack leader?”
Libby advises that once you decide whether you prefer to work alone or in a team you will have a clearer idea of the type of business you should start. Many freelancers work with other freelancers, but is this for you?
- “What skills do you have?”
Like the previous writers, she also says that you need to consider what skills and experience you have and also to listen to what other people say about your best abilities.
- “Where do you see yourself?”
Libby recommends tapping into your ‘mental image to reveal insights’ into what it is you want to do.
TASK
I am a big fan of creative visualization and I suggest you spend time imagining yourself in your chosen roles. Sit down and close your eyes and picture yourself in a variety of business owner roles. Which feels intuitively the right fit for you?
- “Product or service? What resources do you have?”
She emphasises the need to check what resources you have to make your business a reality. This should be part of your business plan. Libby also raises the issue of taking out a loan if you need to. Her website has comprehensive information about startup loans which you may like to check out.
TASK
What resources do you have available to you and how can you make use of them?
- “What kind of person are you?”
Libby suggests you analyse your personality so that you are sure what you feel comfortable doing and what is outside of your comfort zone.
TASK
You could take one of the many personality tests online. Here is a link for a personality test. If you search in Google for Psychometric Tests you will find more to choose from.
2. “Brainstorm business ideas”
Libby recommends a number of creative ways to think up business ideas:
“Look around you”
Her advice is to ask owners of similar businesses for advice about what it is like to run such a business and how profitable, enjoyable etc it is.
“Look online”
Researching online for business ideas is another suggestion she makes. You can start by looking at the businesses that LMB offers.
“Think about a problem”
Libby says that you should look for existing problems with similar products and services to the ones you are considering offering. Then you will see how you can improve upon what is already on offer in the market. Looking at testimonials and reviews for products and services to give you information about the problems people have.
“Explore franchises”
She recommends looking at franchise models which is something we suggest too. If you read the LMB website you will see a number of franchise opportunities with brands such as Amazon, Istore, Airbnb, Uber and many more.
3. “Work out what business ideas are profitable”
This is an aspect already covered in previous article summaries. Libby recommends you work out your start up costs and whether there is a high profit margin for your proposed products and services. She says, “Think about products or services that cost the least to offer but make a good profit”
“Pricing of products”
Libby also advises you to plan and research about how to price the product or services you want to supply, because consumers are not likely to purchase goods that are above their budget. It is a balancing act between not pricing too low to be perceived as poor quality and not going too high to put prospective customers off.
“Sweat equity”
Libby says about ‘Turning Physical efforts into profit.” These are businesses that have low startup costs and making profit depends on your hard work. Examples of such businesses are gardening, handyman services etc. LMB doesn’t offer startups such as this as most of our online businesses are higher ticket offers, but if you want to run this type of business you should do further research into what it involves to be sure it is right for you.
4. “Put it all together”
Libby says that it boils down to three things:
- “What you’d like to do
- What you could do
- What could actually work”
TASK
Consider the three points above and write a list of things you would like to do, could do and what would actually be possible.
Quotations:
- “There’s no point choosing a business idea but not enjoying it.”
- “Doing something you love is a rewarding way to run a business.”
- “Your mental image can reveal insights about what you’d like to do.”
- “Think about products or services that cost the least to offer but make a good profit”
- “Turning Physical Efforts into profit.”
Article Six: Starting a Business: The Idea Phase
Article Six Summary is based on a piece was written by the staff at the fantastic Entrepreneur.com. Here at LMB, we are big fans of their website and social media. It is one of the best resources available on the internet. We go through the main points they make and give suggestions on how to implement their advice.
Article Summary:
"Get the Juices Flowing:
The article starts off by suggesting that ‘you know yourself more’. This is a theme we have seen in other articles. They say budding entrepreneurs should workout the things they are good at and like doing. Also, you should include the things you don’t enjoy, which is what previous writers also said. This will indeed ‘get your juices flowing’ and then the next step is to take action based on your reflection.
“Listen”
The article talks about ‘listening to your own frustrations; to determine how you can take action to deal with them. It also describes how problem solving is a big part of running a business. Therefore, by listening you can learn how to turn problems into opportunities. The key takeaway is listen and find opportunities.
“Inspiring Moments”
The writer suggests that ‘inspiration can be anywhere’ and that by being observant to the latest news and trends we can find inspiration for business ideas. The example given is Netflix.com and how the idea came from a health club which had a fixed charge regardless of how often you wanted to use it. This was the inspiration for the pricing for Netflix. The key takeaway is that you should look at what other SMEs and large businesses are doing and be inspired with ideas for your own business. You don’t have to reinvent the wheel, you can ‘customize ideas’ to make them into your own ideas. This is a great piece of advice from Entrepreneur.com.
“Just Do It!”
The writer says that a ‘business start-up isn't rocket science’ and it is difficult to start with but you must realise that a lot of the people in your sphere of influence will not support and encourage you. Unless of course you surround yourself with entrepreneurs, which is something LMB recommends! The writer says you must have ‘the perseverance’ to carry on and deal with rejections. So as they recommend, ‘Just Do It!’ and don’t look back.
In summary, the writer states the most effective way to know if your business idea will succeed is to chat to people, be a good listener and be innovative. Also, have the grit and determination to carry on in hard times to be successful!
TASK
Considering the points above, write down which are the most useful and inspiring for you and why. Keep this in a journal to look back on as inspiration when times are hard.
Quotations:
- “There's really never a bad time to launch a business.”
- “The opportunities are all there; you just need to search them out.”
- “Inspiration can be anywhere.”
- “It isn't easy to begin a business, but it's not as complicated or as scary as many people think, either. It's a step-by-step, common-sense procedure.”
- “Once you get an idea for a business, what's the most important trait you need as an entrepreneur? Perseverance.”
- “You've got to get beyond the "no" and move on to the next person--because eventually, you're going to get to a "yes."”
TASK
After reading these two summaries, take notes about the ideas which resonated with you the most. Did it inspire any ideas for your business , products and services? Did it make you realise any business ideas that you are not suited to?
Article Six: Here’s How You Develop a Successful Business Idea
In the Article Six Summary we look at four great tips for developing your business idea. We based our commentary on a superb piece by fortune.com
You can read the article here: Source: https://fortune.com/2016/01/10/develop-successful-business-idea/
Article Summary:
"Say it out loud"
Explain your product or services in a way that anyone can understand, use plain and simple language about what your product does and why it is needed. Sometimes, people may have a hard time understanding but if you can't explain it to a uniformed person, you've got a problem. It simply means, the idea wasn't clear in your head and you will have a hard time attracting employees, investors and customers to make your startup successful.
"A picture's worth a 1,000 words, and a video is worth 10,000"
Converting your idea into a simple graphic or visual product concept is good for clear communication, but turning that into a simple 90–second video is even more powerful. You can use different tools or props to explain your product and services. This is a great point and remember that video has one of the highest engagement levels on social media.
"Get feedback on your product concept from as many value-add people as you can"
This article recommends you use your connections. They tell readers not to be afraid that someone might tip off potential competitors, and to just be confident that you can be the one to make this idea succeed. They describe how you will be surprised by the number of people who will offer to help you with encouraging feedback that can lead to potential clients, investors and customers. Using your network is a common piece of advice for any startup and existing business because your 'network is your net worth'.
They also suggest that you determine who your target customers are and talk to them. It means you have to interact with your potential customers.
Finally, they urge you to talk to investors because they believe investors want to talk to smart people so make use of the industry trends. The writer recommends that decent investors will know what's happening in the sector and identify potential partners and competitors. They will also know if your business is appropriate for funding and that can guide your market validation plans.
"Create a plan for fast market validation"
The article cites the last and most crucial step as developing a plan to quickly affirm the market need for your products and services. They also say to get advice from experts who've learned the hard way. But if you can't find a fast, cheap and effective way to validate the market, you need to raise the money first.
They point out that friends and family may want to support you financially, but only if your business has a realistic “fall back plan”. Because family and friends need assurances that the business will make a profit, so you can eventually pay them back or alternatively give them a share of the company.
Overall, some very credible and worthwhile ideas; food for thought!
Quotations:
- “Pulling the plug on an ongoing start up is hard”
- “If you can’t convince yourself, don’t bother trying to fool others.”
- “Put yourself out there and expose your idea to people you don’t know.”
- “Real success in the start up world is hard to come by, but quickly evaluating and eliminating the less attractive ideas drastically raises your lifetime success rate.”
Article 8: Nine Ways to Know If You Have a Great Business Idea
Source: https://www.businessnewsdaily.com/3969-finding-great-business-idea.html
Summary:
How to come up with a great business idea
Start by analyzing yourself and your strengths and answer the following questions:
What are you good at?
Determine all of your skills and talents because those skills can turn into business. It is very important to choose something you like and are passionate about because it is good to enjoy the things you do day in, day out.
What do others tell you that you're good at?
Listen to the people around you. Maybe they see special skills in you that you don't see as an opportunity. Those skills can be a great business idea if you see yourself happily doing it in the long run.
What service do you wish existed that currently doesn't?
Think of existing problems and find a solution for it. It is a big opportunity for you because of the fact that many businesses become successful by offering products and services that solve problems for others.
Helpful sources to spark new ideas
Look for inspirations around you to spur that lightbulb moment. Here are four places to look for inspiration:
Study successful entrepreneurs.
Learn all of you can before starting your entrepreneurial journey. Read origin stories and study successful business titans and look for advice and learn from their experience..
Turn to social media
Read about other people's reviews of certain products or services. Determine their grievances and take a look at their problems that you are able to solve.
How to determine if you have a good business idea
Here are several expert's advice to help you determine if you have an effective business idea.
Does it solve a problem?
"If there is a problem that affects you, your friends, family, co-workers, etc., then the chances are high that it affects people you don't know as well," Mike McGee said.
Will people pay for it?
"It's paying customers who validate an idea and determine which ones have the greatest chance for success," said Wil Schroter, co-founder and CEO of Fundable.
What's your price point?
"While there are many ways to solve problems, great business ideas do it in a way that is less expensive than what the market will endure," Charlie Harary said.
Is there a sizable niche market for it?
How can you tell if a niche market is, in fact, a market? It's a mix of "research, gut instinct and personal preference," according to Ari S. Goldberg, founder of investment firm RNMKR.
Are you passionate enough about it?
"Since starting a business requires an inordinate amount of time, energy and patience, ideally, the idea will be one that you are passionate about as well as one that you have skills or experience [in]," said Melissa Bradley, managing director of Project 500 and an adjunct faculty member of Georgetown University's McDonough School of Business.
Have you tested your idea?
"Test it – not just with friends who will be too polite to tell the truth but with honest people who would make up your ideal target audience, and then listen to the feedback," said Lisa McCartney, chief "PLYTer" at educational math board game company PLYT.
Are you open to advice?
"Success happens when you are willing to listen and consider others' advice," said Angie Yasulitis, CEO and managing partner at The YaZo Group. "Most good ideas take some tweaking to get to market. Being closed-minded is a business killer."
How will you market your business?
"If you have a solid go-to market strategy and a decent product, you'll probably be successful," Lipson said. "But if you have a great product without any idea how to reach potential customers, then it's going to be really tough to make it successful. Thinking through that as early as possible is really key."
Are you being realistic about your goals?
"You shouldn't have a Field of Dreams mentality when starting your business," Thomas J. Gravina said.
TASK
As in the last task, make notes about the ideas which really connect with you. How have these article summaries influenced your thinking about your own business ideas? Have you got a number of potential business ideas for your venture?
After article 9 you will be doing a summary task where you reflect and action plan based on all of your reading. Good luck! Let's do this!
ARTICLE NINE: How to Choose a Business Idea From the List of Business ideas?
Summary:
Keep proper records of business ideas to make sure that nothing will be forgotten, those information are helpful in expanding a business or to start a new one.
Entrepreneurs look into research and make comparative analysis of business ideas to decide which one will be used to start a business.
Choosing business ideas can be grouped in a simple way or complex way.
In the simple way of choosing, business ideas are compared with each other in a random manner. Two ideas will be compared, the better one will remain to be compared to other business ideas. The process will continue until the best business idea remains.
On the other hand, the complex way is more systematic. It considers different factors that affect the business’ success.
Complex Way Process:
Make a list of factors that will be valued; factors that are important to the success of business.
Examples: “personal satisfaction, market size, monetization opportunities, risk of failure, efforts needed to implement it, implementation time” and so on.
- Add weight to each factor that will determine the importance of the factor in the valuation process.
- If one factor is more important to you, it should weigh or be considered more than the other.
- Assess each business idea based on each of the factors that you have defined previously. Example: Use a scale of 1 to 5.
- Multiply each weight of the factors with the score that you give for each idea based on an appropriate factor. This is for the proper assessment of the factors.
- Collect the individual scores of the factors for each idea.
The idea with the largest score should be used as the business idea.
Quotations:
- “The ideas are the easiest part of an entrepreneurial process.”
- “Typically, an entrepreneur will make research and analysis to compare each of the business ideas with another
SECTION ONE SUMMARY: REFLECTIVE, BUSINESS PLANNING AND GROUP TASKS
Which of the 9 articles did you find the most useful and why?
8 STEP ACTION PLAN
From the notes you took during reading the articles, now make an Action Plan of your steps over the next month to work towards choosing your business idea. You can do this in less than a month if you prefer but make sure you carefully consider the options. There is no need to rush your decision. Look at the businesses on offer at LMB: https://www.lovemybusinesses.com/
One of our automated online businesses might be the perfect fit for you!
N.B. Include points from the articles in your action plan. PRINT THIS PAGE OUT AND HANDWRITE IT.
1.
2.
3.
4.
5.
6.
7.
8.
GROUP DISCUSSION TASKS
If you are a teacher, lecturer, business trainer or just a pair or group of entrepreneurs here are some suggestions of how to use the 9 article summaries/commentaries.
GROUP DISCUSSION TASKS
1.GROUPS AND PLENARY
Break up into groups of 3, 4 or more. Each group reads and discusses one or more of the article summaries and commentaries and does the tasks in each case. Then they meet as a whole class to feedback their ideas and discuss them further.
2. BUZZ GROUPS
In a similar set up to 1 groups break off and discuss one or more of the articles and brainstorm ideas. Every 20 minutes send two people from each group to another group. This keeps the energy and motivation going because you also set time limits for each group session i.e. 20 minute discussion and then two people from each group move to another group.
Buzz groups can be fun, dynamic and a productive way to seed ideas and encourage innovative thought.
3. RESEARCH PROJECTS
Allocate one or more article summaries and commentaries to each group. Give each group (or person if you are a small group) a week to research further into the topic and prepare a presentation. They can create a PowerPoint or other form of visual presentation e.g. video, podcast etc.
THAT IS THE END OF SECTION ONE! We hope you have managed to choose a business idea from completing this self-study resource!
Get Love My Businesses News To Your Inbox
COMPANY
Recent Articles