Last week, we talked a lot about innovation-where it comes from, is it feasible, what are the next steps, etc. Ideas (whether great or not) are generated constantly, but the execution of these ideas are equally important. In recent years, I've thought a lot about entrepreneurship and innovation. Many ideas come to mind, but none have been executed. I'm hesitant to pursue these ventures because I do not have a concrete or complete business plan put together. It's always a work in progress.
As an entrepreneur, do you need to have a concrete business plan before you pursue a venture? Or is it possible to sell (i.e. convince) strictly based on an idea and work on the business plan as you go along? At a recent networking event, a friend of mine (who has a start-up) says that you are always selling. I guess this implies that I should get out there with my idea and do it, even if I don't have all the answers.
Your thoughts? Your responses will definitely shed some light and motivation into my potential ventures.
-Tony Tran
Tony, My take on your question is the following 1) Idea= concept. Take idea and move to next stage - 2) communication - devise a channel to get your idea across clearly - an ad, a business plan, a brochure etc that illustrates that you have looked at your idea from a 360 perspective. As Prof Myers said yesterday, the process is incomplete without feedback! 3) Execution of idea based on feedback
ReplyDeleteExamining your idea in your own mind based on your research re: factors affecting your idea result in your business plan. The rest is salesmanship. You dont have to have all the answers when you begin.
1. Urgency
What is the true urgency of your potential customers receive your product or service? For example, renting an old movie generates no urgency, but a vaccine for Influenza A can be very urgent.
2. Market Size
How many people are actively seeking your product or service? The mobile phone market is huge, while the market for a training course is much smaller.
3. Potential price
What is the highest price you would pay a potential customer for your product or service? It is not the same selling lollipops for ten cents Private Jets for several million euros.
4. Customer acquisition cost
How much time, money and effort you will get new customers? A gas station on the edge of a busy highway will not have to do much to get new customers, while a company that develops engineering projects such as tunnels, bridges, etc., must devote much effort to get new projects.
5. Cost of adding value
How much it will cost you time and money to create and deliver value to your product or service? The download of an ebook on the Internet that the making of a dress or tailored suit.
6. Exclusive offer
How does your bid is unique when compared to the rest of your competition? How easy or difficult is that your competitors will copy your differentiator? There are many salons in the world, but very few companies that offer trips into space.
7. Speed to put on the market
How soon will have available to sell your product? You can put on the market a new type of pen in a very short time, while developing a new mobile phone operating system can take years of development.
8. Initial Investment
How much money you will invest before you have a finished product to sell? Start a blog cost you very little while to develop the prototype of a new electric car you will be a great investment.
9. Potential product extension
How much additional offerings can develop after your main menu? If you create a razor blade, then you offer spare blades, shaving cream, aftershave, etc, whereas if you offer a frisbees, it is more difficult to develop complementary offerings.
10. Sustainability of supply
Once you have created the initial offer to you When efforts to continue selling? Consulting is something that is ongoing work to keep selling, but in a book is created once and sold over and over again without the need to work again.
Sangeeta