Turning an Idea into Reality

For most people the biggest challenge is stimulating a creative culture and finding ways to encourage multiple points of views. Therefore they use Internet to find “best business opportunity” This is simply because perspective is more important than IQ. So you don’t need to be super smart to make decent money. But be aware that the Internet is infested by websites telling you that you can make thousand of dollars per month from the comfort of your home and it is so easy that everybody can do it. The reality about these “home businesses” is something else.

It need not be followed systematically and, most certainly, they should not be perceived as a sure-fire recipe. Instead, view them as a series of menus from which you can pick and choose according as your thoughts develop.

When you have YOUR ideas you need to make a feasibility study to select the idea you think is the best and might work. One way of evaluating ideas would be to use a simple scoring system using gut-feel with a limited number of criteria as shown below:

Before scoring individual ideas, run through the criteria and set what you feel should be minimum desirable scores for each. The resultant total could be used as your overall minimum threshold. If some ideas don’t achieve satisfactory scores, drop them and look for better ones.

Once your short-list has been developed, you will need to start devoting substantial time to assessment, research, development and planning. For a start, you could pursue the following tasks:

• Would they buy from you, at what price, with what frequency etc.?
• Why would they prefer your products to the competition?

Find out what they really think – there is a danger that people will tell you what they think you would like to hear. Listen carefully to what is being said; watch carefully for qualifications, hesitations etc.; and don’t brow beat respondents with your ideas – you are looking for their views.

• How does the market segment (by price, location, quality, channel etc.)?
• What segments will you be targeting?
• How large are these segments (in volume terms) and how are they changing?
• What are the price mark-ups/structures?
• What market share might be available to you bearing in mind your likely prices, location, breath of distribution, levels of promotion etc.?

• Who are they and how do they operate?
• Are they successful and why?
• How would they react to your arrival?
• What makes you think that you could beat the competition?
• At whose expense will you gain sales?

• Will you be able to work from home or part-time?
• Will you seek a franchise or set up as an in-store concession?
• Will you start by buying in finished products for resale as a precursor to manufacturing?
• Will you contract out manufacturing?
• Will you buy an existing business or form an alliance?
• Could you lease or hire equipment, premises etc. rather than buy?
• How will you stimulate sales?

Estimate possible sales and costs to get a feel for orders of magnitude and key components and to establish a rough break-even point (when our sales might start covering all your costs).

Avoid over-estimating likely sales and under-estimating costs or lead times. Better to be relatively conservative. Don’t confuse profits and cash.

Cover the first year of operations to highlight the critical tasks and likely funding needed before the business starts generating a positive cash flow. This is critical especially if you have to undertake significant product or market development or need to give credit to customers.

• Can I raise enough money?
• Can I get a premises/staff etc.
• Will the product work?
• How will I promote and sell?
• Think through possible problems. What would happen if sales took twice the expected time to develop while costs escalated?
• What would happen if …

Bear in mind that the incubation period for a new business can easily last several months or even years. Don’t rush into the first feasible idea without letting it incubate or develop in your mind for a reasonable period. There might be a tendency to get all fired up and enthusiastic such that your heart is starting to rule your head. Instead, stand back and think!!

Do not be afraid to seek external assistance from professional advisers or from enterprise support organizations, which are virtually everywhere.

Most probably, you will start addressing all these tasks in parallel rather than sequentially.

• Select a company or business name, logo etc.
• Decide how you will start trading – limited company, sole proprietor, etc.
• Look into any licenses which might be needed, or regulations to be complied with.
• Think about where the business will be located.
• Look for professional advisers (lawyer, accountant) and a bank.
• Consider likely telephone/communications needs.

• Define precisely the nature of the business
• Offer clearly identifiable products or services
• Tap a real need or generate a demand for your product/service
• Operate within your expertise and resources
• Have realistic targets and have reasonable expectations
• Keep everything as simple and straightforward as possible.

If, at all feasible, there are huge advantages to be gained by embarking on a “soft start” or pilot launch before plunging full tilt into the new business. This approach can be of enormous value in helping to firm up on the scope of the opportunity; gaining more insights into the market; debugging products and getting customer feedback; curtailing costs and personal or financial exposure; acquiring a track record, etc.