COMPONENTS OF A SUCCESSFUL BUSINESS IDEA

Introduction;

The prerequisite for creating and running any business is first; conceiving the business idea. A business idea is any concept that could, be used to generate income and revolves around a product or a service which is offered in exchange for money.

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Characteristics of a good business idea;

   For an idea to be considered a good business idea, it must have the following characteristics;

• Feasibility;

    This is an idea which is able to be carried out in normal conditions.  Some conceivable ideas are not feasible naturally, for example, the thoughts of transporting people from earth to heaven might seem to be a very good idea because many people will be excited to pay even their last penny for the journey. But under normal condition, that idea is not feasible; cannot be done.

• Sustainability;

    A good business idea is one which is able to continue nourishing or sustaining itself even after the external source of income that started it has been terminated otherwise, the idea is not sustainable. The idea must also be able to sustain itself not only financially but socio economically and all other facet of the business.

• Scalability;

     An idea is considered good if it has a clear plan of being able to grow to higher heights opening new branches is different locations.

• Profitability;

    It must be able to make considerable profit so as to sustain itself.

• Independence;

      For an idea to be considered good, it must be designed in such that it is able to run with or without the conceiver or entrepreneur. A business that is designed not to run without the creator or conceiver is already a failed business conception.

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Components of good business idea;

 1) Brand Name;

 Branding is one of the most important components of a business. In fact, the brand and the business are inseparable. The purpose of a brand name is to identify the business or differentiate a particular product or services from other like or similar brands.

   A good brand name must be short, easy to pronounce, appealing and attractive. Examples of popular brands include; Google, Micro soft, Coca cola, Amazon, Apple.

2) Problems;

      A problem is any sector or entity or issues that are lacking in a particular community (local, national or global) that matters so much to them and which will cause them spend money to achieve or deal with it.

     This might be a good or service that is totally absent or which is not adequately provided in a way that suits the customer. Solving that problem creates a business. For example, Facebook came to solve the problem that existing communications were not solving.

3) Competitors;

      The competitors to a company are not necessarily those producing the same products. For example a meat seller has as competitors all those involved in the sales of protein derivatives and not necessarily other meat or fish sellers. A chemical fertilizer store or seller could also face stiff competition from farmers who depend on animal dung or compost.

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4) Solution;

         A solution is a unique method used to adequately and precisely solve a customer’s problem. This is the main component of a business idea because your solution can either make or mar the business. Your unique solution sets you apart or makes you different from your competitors.

    In other to provide a suitable solution, or good business idea, the conceiver or entrepreneur must;

• Understand the problem adequately
• Know the existing solutions in the market and their  lapses(competitors)
• Have a clear road map that is used to achieve its objectives(business plan)
• Have a clear marketing strategy.

    5) Sustainability and Growth;

          As mentioned above, all good business idea should be able to nourish themselves, have the potential of growing in a particular location or extending its tentacles to all locations and this is better if the growth is done without depending on external sources of income.

  6) Marketing;

           Marketing is one of the most important components of a business idea. The market is so important that Seth Godin a business mentor had this to say “Don’t find customers for your products, find products for your customers”.

This in simple terms could be translated as do not start a production of any good or service without a clearly define and available market. This is how important a market is to an entrepreneur.

     A Word From Enjoyurlife;

             For an entrepreneur to successfully conceive a good business idea, he must identify a problem; product or service which is absent or poorly being provided in a community, finds out existing solution for that problems and their lapses, update or provide a better solution that will make the customers happier and ready to pay for it.

In addition, the solution provided must be able to nourish and sustain itself, have a clearly defined channel from him the producer to the consumers and be able to visualize what that business will be in the next 5, 10 or 20 years to came in a clear and workable business plan.