A Business Idea Is Not A Business Opportunity: The DifferenceOluwaseun Olayisade
A business idea is not a business opportunity. Have you heard this before and thought well it can’t be true?
As a business owner or aspiring business owner repeat this to yourself for emphasis:
A business idea is not a business opportunity.
There are differences as you will see in a minute.
What Is A Business Idea?
Every successful business starts with a powerful business idea. When establishing a business the first step is having an idea. Which anyone can come up with. So not just any idea but a promising one.
The characteristics of a promising business idea are:
- Innovative – Has it been done before or are you improving on what’s been done?
- Unique – What’s the USP (Unique Selling Point)? How’s it different from the competition’s? Does the value differentiate yours from your competition’s?
- Problem solving – What problem does it help the customer solve? What does the client benefit?
- Profitable – Will it earn money? Will it cover the costs and more? It has to be profitable on the long-term.
- Market – Is there a market for it? Are you creating a market? Will your created market willingly accept and adapt the idea? A promising business idea must offer a product or service that would be accepted by a large market.
The opportunity to make income as a business owner. It’s an existing and well packaged business investment that allows the buyer to profit from a business idea.
Elements of a business opportunity
- A need.
- The means to fulfill the need.
- A method to apply the means to fulfill the need.
- A method to benefit.
A business idea is not a business opportunity except it has been proven to make profit. Because an idea is just an idea till there’s return on investment (ROI). Then it evolves into an opportunity.
Though business ideas are innovative no one will continue to sponsor a money losing venture.
A business idea is not a business opportunity till it’s able to answer the following questions:
- Will the product or service add significant value (benefits) to the end user?
- How many people will buy the product/ service?
- Will the business be profitable? Is there an apparatus in place to ensure the business breaks even and also makes profit within 12 months – 36 months?
- Do you have the money to start and operate this business? Because the capital invested must be realistic and affordable for you.
- Does it have the potential for residual income?
- Does it have a low level of liability risk and high level of returns?
- Will the business idea fit into the four basic capital factors: human capital (the staff you employ, skills and abilities you acquired during your career); sociological capital (your networks and support groups); psychological capital (your attitudes, values, opinions and beliefs); and financial capital.
- Are you ready and willing to drive the business to success? You must be very enthusiastic.
- Will it improve with time?
Reading through this you have seen a business idea is not a business opportunity. Rather a business idea evolves into an opportunity.
So how does a business idea evolve into an opportunity? Through conducting market research on your idea, feasibility study, writing a business plan and working with a business team to ensure its success.
Do share your thoughts in the comments.