Sunday, February 6, 2011

Knowing a Winning Business Idea

Reading the article, it identified three overarching tools that lead the way to a winning business idea:
  1. Exceptional Buyer Utility- How consumers will respond to your product/service
  2. Strategic Pricing- What the best price is to capture your intended consumers
  3. Business Model- Can you be profitable with your delivery strategy
Though at times I found it a bit difficult to identify with some points in the article because it mainly regarded "products", while my venture provides a "service", I still found several tips that were quite useful during my thought process. An important point in the article is do not become sucked up into the glitz and glam of what you "think" your social venture is, because more than likely it is unrealistic and the price point will be also. At this point, a competitor can come in and run you out of buisness. Going off this point, another important point made was that although exceptional utility is good, it is also all about a strategic price plan. One must price map with competitor prices in order to provide the best possible, and "realistic" price for your future consumers. Also, do not allow for overruns, as your initial price point will skyrocket rather quickly.

The question that I asked myself while reading this article is, how does one measure and evaluate something as intangible as social value?

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