Tag - Startups

Business idea is not a business opportunity

A Business Idea Is Not A Business Opportunity: The Difference

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.

But first

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.

Business idea is not a business opportunity

  • 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.

Business Opportunity

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?Business idea is not a business opportunity

 

  • 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?
In Conclusion

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. 

Entrepreneurial process

7 Fundamental Stages of The Powerful Entrepreneurial Process

What’s the fuss about entrepreneurial process? What does it encompass?

First off what’s a process? A process as defined on google is a series of actions or steps taken in order to achieve a particular end.

As the name implies entrepreneurial process is the series of actions you take to be an established entrepreneur. (Simple right!)

The entrepreneurial process is a continuous one and it plays a huge role in the growth or demise of your business. So never give up that grind.

Everything you do as a human requires a process from conception to growth, schooling, marriage for some and sadly death for all. Entrepreneurship is not different.

Quick digression: We have been digging into the nitty-gritty of being an entrepreneur. This blog is a beginner’s guide to point you in the direction of being an entrepreneur.

You can catch up on who’s an entrepreneur, types of entrepreneur, characteristics of a successful entrepreneur, entrepreneur challenges and entrepreneur motivation factors. So you have an idea of the things we have earlier discussed and know where we are coming from.

The entrepreneurial process is undergone by everyone who sets out to be an entrepreneur. And sometimes by those who didn’t even intentionally set out to be one.

Follow my outline of this process and endeavor to get back to me with your success story. I’m all about success stories.

The entrepreneurial process is as follows:

• Self Realization
• Plan the Business
• Trial and Error
• Start the Business
• Perseverance and Sustenance
• Reflection
• Retire or Repeat the Process

Self Realization (Discovery)

This is the point you have a mental jerk known as entrepreneurial seizure. The point where you finally realize you want to get paid doing what you love.

Plan the Business

This stage of the process is actually a process in a process. It involves a whole lot; it might seem overwhelming but it encompasses the hard work of the entire process.

This stage involves identifying and evaluating your business opportunities, demand research, deciding on the value you will add to the market, developing your business ideas, developing market entry strategy, finance and capital, identifying your competition, pricing, building relationships, risks analysis, patenting your products, business name and company registration, device your exit plan and lastly your business plan.

I mentioned your business plan last because it is the most important thing you will need if you intend to bring people on board your ship.

Trial and Error

You ask why this. Most times the first business we set out to do fails. You just have to get back in the game and try another.

Start a Business

This is the part where you officially launch the business after overcoming certain hurdles. This confirms you are in business.

Perseverance and Sustenance

At this point if you have done everything prior to this right you enter into the autopilot mode. But don’t get carried away; things can still go south.

Refuse to call it quits, pay the bills, pursue sustainability also pay attention to your competitors and the market.

Reflection

This involves you looking into your records, keep what’s working and throw out what’s not.

Stay confident, embrace your business challenges and get out of your comfort zone.

Retire or Repeat the Process

Remember I said earlier to devise your exit strategy. Well this is why you need it. You can choose to continue running the same business or sell it off and start all over.

Some entrepreneurs get a thrill from selling and starting all over.

Prior to now did you start several businesses and gave up? Don’t berate yourself. It’s all part of the process.

So many business greats underwent this process over and over. Be rest assured you are in good company.

If you went through this process differently, want to add more steps to this process or share your success stories with us please join the conversation in the comments section.

Entrepreneur types

The 5 Popular Types of Entrepreneur You Need To Know

Which of the entrepreneur types best describes you?

There are different entrepreneur types based on several classifications.

First a quick recap on entrepreneurs.

Entrepreneurs are people who take risk, exercise initiative and take advantage of opportunities.

They plan, organize, commit their resources and also create new or improve existing products and services.

Due to my love for business and freedom I have been talking a lot lately about entrepreneurs and entrepreneurship.

So I figured why not an article on types of entrepreneur. To help you understand better the entrepreneur concept.

Knowing the types of entrepreneur will enable you identify your strengths and weaknesses as an entrepreneur.

Also how much work you need to invest in yourself to get to where you aspire to be.

Based on various classifications there are different entrepreneur types. Some are categorized by entrepreneurial motivation factors.

You can evolve from one type of entrepreneur to another or be a combination of different types of entrepreneur.

Depending on what motivates the entrepreneur the 5 types are:

The World Changer

This type of entrepreneur is influenced by his will to make a positive impact on the world either on a local/ national/ global scale.

Uses his knowledge from past experiences or jobs and spare time to spearhead a business.

Likes the challenge and rush he gets from establishing a new business.

He sees a problem and decides to use his products or (and) services to solve it.

The Innovator

Mr. Innovator likes to come up with new ideas, method of production, products and services as never thought of or seen.

Always looking for unconventional means to solve problems and loves to improvise.

These are strongly internally motivated entrepreneurs.

Of all the entrepreneur types this is the most creative and are majorly the most successful.

The Opportunist

As the name implies he makes use of opportunities. He sees a need and fills it.

He creates a business on impulse. Predicts the right time and right place to do a business. Which works and sometimes it doesn’t.

An opportunist sees the demand and commercializes it. Able to sniff out money making opportunities and cash in on them.

Opportunists seek for a chance. Entrepreneurs make new chances – Toba Beta.

They mostly copy existing techniques and technology so they are referred to as Imitative Entrepreneurs. Always following new trends but tweaks it.

Copy cats seem good at what they do but will never find a spot at the top – Cyc Jouzy.

Jack of All Trades

This entrepreneur has the ability and resources to do several businesses at a time.

Doesn’t have to be at the helm of affairs.

Wants to have free time with family and friends. Just loves the idea of being an entrepreneur.

Only wants to escape the confines and stress of paid employment.

Serial Entrepreneur

Always looking for the next business boom to venture into. Looks for growth potential and has the ability to generate a lot of income.

Grows the business to a point and moves on either by selling it off or handling it to a successor.

Sees every business venture as a project. Once a project is done they start the process all over again.

These are project oriented set of people. Gets bored easily.

Conclusion

Am sure while reading through you were able to identify yourself or notice you exhibit characteristics from various types of entrepreneur. It is normal.

Reading this will help know what type you are presently and what you aspire to be in the light of what inspires you.

Join the conversation to tell us more entrepreneur types you know and based on what classification.