It is often easy to think about an idea and not wonder if you can turn it in to a business model. However, it is easier said than done, as starting a business is no easy job. Having an idea is fine, but the real work lies in building a sustainable model capable of generating revenue. This is where a lot of ideas just become what they are i.e., ‘just ideas.’ Here is a simple guide which may help you convert your idea into a business.
1. Take the dive:
A lot of successful startups were not founded on something new. The founders just identified a problem which could be solved and just began working on it. Starting a business is as simple as just taking the plunge. Jan Koum and Brian Acton, the founders of the popular texting app WhatsApp, left their Jobs at Yahoo! and applied at Facebook, but were rejected. They then developed WhatsApp, which revolutionised the way messages were sent. Had Jan Koum and Brian Acton not taken this risk, the way the world communicates today would be extremely different.
2. Evaluate the idea:
The business idea needs to be evaluated by assigning goals, targets, revenue and capital investment. A lot of initial brainstorming is necessary in order to lay the groundwork which will let the idea become a business model. Try to identify the demand for your idea so that you can be sure to convert the idea into a realistic business model.
3. Do market research:
It is important to set aside a dedicated budget for just marketing the idea. This will help out a lot in the long run by helping a business identify their target audience. Market research provides a ton of data which can be crunched to establish key result areas (KRAs) and key performance indicators (KPIs.) If there are any potential competitors or existing competitors, it is important to research about them as well. Digital marketing, offline marketing and surveys are just some of the things which can be done. Market research is important in estimating the value for the product, which in turn will provide you with the necessary data to develop a revenue model. An interesting example of how market research is vital would be the story of when beverage giant Coca-Cola decided to rebrand the Cola to New Coke, along with a change in the product formula. It caused outrage amongst consumers which led to them boycotting the product. Coca-Cola then realised its mistake and went back to its original name and formula. During initial research surveys, it was found that the new flavour would be received positively. However, the outcome was completely different. Perhaps, had the Company done extensive market research, there are chances the outcome may have been avoided.
4. Making it official:
Once the initial market research is finished and goals are assigned, the business can be made official. This can be done by legalisation, by establishing a business name and business structure. This may help in eliminating the chance of someone else stealing your idea.
5. Hiring your workforce:
Offering jobs on a contract basis can help you out with getting a team to work with you. This will help out in allaying any hesitation with regards to working for a startup, where security is important. Finances can be stringent and it is not easy to get the talent you need nearby, therefore it is helpful if you can hire remote workers.
6. Find a co founder:
Finding a co founder is not an easy job as it begins with self reflection and evaluation of your own strengths and weaknesses. Selling the idea to another person who can complement your weaknesses and allows you to work with each others’ strengths will help out a great deal in managing the business. Apple was founded by Steve Jobs and Steve Wozniak. Wozniak was responsible for the design and development of Apple I, while Steve Jobs took on marketing the product and the rest, as we know, is history. This highlights how a co founder who can add value to the skills lacking in a founder helps build a good business.
7. Building infrastructure:
A lot of infrastructure needs to be in place to be able to run a business, like a building, IT framework and software, amongst many others. Identifying and establishing the necessary infrastructure can help in streamlining your business. A little bit of research can also be done to identify vendors who can take up the burden of starting up. Identifying the right vendor is vital as they may have access to sensitive company or product information. Indian food delivery unicorn Swiggy believed in having a strong infrastructure in place and spent considerable resources in developing their logistics and infrastructure, which contributed immensely to their growth. This led its competitor Zomato to take note and start doing the same in order to catch up.
8. Generating sales:
Once your business is established, it is time to start putting in the work to generate your sales. The future of a business is dependent on the sales it generates. Always be on the lookout for problems which arise during a sale conversion, brainstorm a solution and apply it. Regular feedback on every sale will offer a great deal of insight into establishing an efficient workflow. When Indian e commerce giant Flipkart acquired online fashion brand Myntra, they decided to make Myntra an app only platform. This was a move which did not sit well with the consumers. It reflected on the sales by showing a 10 % dip in revenues, forcing Flipkart to get the website back on. Learning from customer feedback is important in order to keep the sales regular.
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It is not easy to convert your idea into a business, however, begin by utilising these strategies and investing in marketing and customer satisfaction. If you keep doing your market research on a regular basis, there is a higher probability of your business taking off to a good start. A lot of businesses or successful startups took off by following these simple steps. While there are many other things different businesses do when they are starting up, almost all of them may have the same guidelines mentioned above at their core.
