For an aspiring entrepreneurs, it is often common to come up with a variety of crazy ideas for new businesses without much clarity on implementation and how to convert idea into business venture. We can think of a business concept as a bridge between an idea and a business plan. Basically it focuses one’s thinking so that the entrepreneur can identify the opportunities and challenges of his/her proposed venture. Converting an idea into a business concept requires thinking about how the product or service will be sold and the targeted customers, the USP’s of the product or service.
Preparing a written concept statement helps unearth critical components of a venture and begins research into key factors that may be more thoroughly addressed in a business plan. As the business idea takes form as a concept statement, the entrepreneur can evaluate the business more effectively for potential challenges and pitfalls.
Following few fundamental steps to be considered to convert your idea into a start-up:
Complete Market Research.
It is common tendency that most of people skip this first step and chase ideas without really evaluating the monetary and technological worth. It is absolutely essential to the success of your start-up that to begin by defining a problem and seeing if the end solution is actually something that customer needs.
Define your Unique Sales Proposition.
What exactly will you be offering? Is it a product, is it a service, what are the particulars of your product or service and how are they different from the rest of your competitors? Answering these questions will help you put your idea into concrete and saleable terms.
Setting Up a Legal Entity, a Company.
This is important especially when you want to be taken seriously by investors and clients. When you register your company and incorporate, you are essentially turning your business into a legal entity which helps you decide the structure and be prepared to collaborate with investors at appropriate time.
An effective and Clear Business Plan is the Key.
Business plans are important documents used to attract investment before a company has established a proven track record. They are also a good way for companies to keep themselves on target going forward. Note down what you want to accomplish with your new business, chalk out goals and milestones and a step-by-step road-map to get you where you need to be to make your start up profitable.
Start Building Talented Team.
Talent pool is must, one person may not have all the skills required to run the start-up-and neither should they! Real businesses delegate specialized assignments like accounting, tech development, product development to professionals who are seasoned in this area. In order to be successful in converting idea into a start-up, start on-boarding talented professionals who share the same values from the get go.
Get Associated with an Accelerator or an Incubator. Collaboration is essential to explore and knowledge sharing for beginners. In case shortage of funds to invest as many start-ups are, a great way to access additional resources and expertise is to join an incubator that helps businesses by helping them tap into a network of experts, investments as well as training to hone skills required.
Validate the Prototype – Market Fit Test.
Now it’s time to test product on the market! Validating your idea on a small scale can allow you to test real-time market response with minimum resources and funds investment. These above steps considered and followed diligently you will likely to have a viable, user-tested, sellable product that meets a specific market demand.
Plan Low Cost Marketing Strategies for your Business.
Determining how to promote your business can be an ongoing challenge. If your business is new, you may not know how to advertise your business to get your name known. You need proven advertising and marketing tactics to find new customers without spending a fortune. These need to include a mix of traditional and digital marketing. To market your business successfully you need a planned, organized approach. Hit or miss marketing wastes time and money. Start by defining your marketing strategy and setting a budget, Identify your best prospects, and then determine the best promotional strategies to reach them. Be as specific as possible. Online and offline marketing methods work hand-in-hand to bring in customers and clients and keep them coming back. In the era of Internet of things, digital marketing isn’t an option—it’s a necessity.
Dr.Kiran Kumari Patil
Director University Industry Interactions &
REVA NEST Technology Business Incubation