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How to turn an Idea into a Business?

Tamara Martinez

Table of Contents

What is a Business Idea?
The Business Concepts' 101
Where to Start with an Idea?
Idea-into-Business Action Steps
Business Ideas Without Money?
What is a Business Pitch?
Digital Business Ideas
Conclusion

Ideas, huh? Thousands of those get into us every day. But, we know they're not all worth developing. Sometimes, you spend a long time thinking about something. Yet, some ideas come to mind right before falling asleep. In other cases, they come across when taking a look at our daily routine. For instance, many projects arose from the dissatisfaction with back-then solutions. Others emerged from analyzing current resources that common people have at hand. For these, the result was an efficient rearrangement. But, before calling your daydreaming a business idea, there are quite some steps. Let's find out what these questions are and discover the process to turn your idea into a business!

What is a Business Idea?

Before you can turn an idea into a business, you first need to define what that idea actually is. It doesn’t have to be complex — in fact, it may be something as simple as a new way to do things. But, it’s important to take real time to think about your business idea and brainstorm ways to make it work. For instance, you may start by asking yourself some questions. What problem does my idea solve? What’s the solution I can offer potential audiences? Is there someone attending this problem? Is the current or potential customer mad at the standard solution? What’s the root cause of that dissatisfaction? Is the industry offering poor experiences? What’s the disagreement between current business and audiences?

While it’s important to have faith in your idea, keep in mind that, right now, the idea is in a hypothetical stage. As the process evolves, it might change. You’ve got to dismember it and analyze its strengths and risks. While passion is part of the process, you also need measurable results to keep you in business. Instead of following a strict concept, allow yourself to mold it according to its reality. Yet, there is no one answer to this question, as business ideas can be incredibly diverse. In general, a business idea refers to a concept for starting and running a business. This can include anything from developing a new product or service to starting a new company. So how do you know if your business idea is worth pursuing? We’ll see more about this below.

The Business Concepts' 101

Some core concepts apply to any projects or business. For instance, the previously listed questions are on the strategic side of the table. But, the ones that we’re about to talk about, rely on its logistics. So, there are a few steps to follow within this path.

Structure

The first step is to choose the right business structure. This includes deciding its hierarchy. For example, you can be a sole proprietor, create a partnership, or a corporation. Also, this will determine the legal and tax liability of the business. Choose the structure that suits your business the best.

Branding

Your business, even at the idea stage, must have a name. There’s a wide variety of starting points for this process. You can take a characteristic of your product or service or use an acronym of your name and the business. Maybe a known word for your market target? Or something completely unique? Let your imagination fly!

Registration

Once you have a business name, you need to register it with your local government. This will give you legal rights to use the business name, and open bank accounts in its behalf. Depending on your business, you may need to get licenses or permits to legally operate. Make sure to keep your paperwork in order right from the ground point!

Finances

Business financing will tell you how much money you’ll need. This encompasses both business’ launch and its day-to-day expenses. There are a few different options for business financing. Some of them are loans, grants, and investment capital.

Business Plans & Models

First of all, you have to acknowledge the difference between an idea and a plan. A business plan is a document to outline all its core aspects. To name a few, its mission, goals, marketing and forecast. This is essential for securing funding. It also helps to track progress over time. If you’re not quite ready to put together a full business plan, it’s still a good idea to flesh out your business idea as much as possible.

Where to Start When Writing a Business Idea?

Where to Start When Writing a Business Idea?

When writing a business idea, it’s important to cover all edges of your idea. Also, you should show your goals on these edges in the most clear way possible. These edges include:

• Outlining the business concept and its potential.
• Describing the target market and how you plan to reach them.
• Highlighting the business’s competitive advantages.
• Detailing the financials, including projected income and expenses.
• Presenting a strategy for how you will execute the business idea.

Idea-into-Business Action Steps

Research

Once you have a solid business idea, it’s time to do some research. To do so, it’s important to learn about your market. Not only does this include studying your primary and secondary competitors. Also, you need to understand your target audiences. Who are they? How old are they, where do they live? What do they do in their spare time? What would they use your business for? What’s the solution you’re bringing to them? This research will give you a better understanding to make a successful business.

Consulting

One of the best ways to ensure your idea is profitable is to consult with a professional. A business consultant can help you determine a lot of things. These include audiences, start-up costs, and standing out from competitors. Consulting with a professional is quite important to create a profitable business.

Planning

Planning is a fundamental step that startup businesses need before beginning operations. Furthermore, some banks and ventures often require this to even consider investing. It’s important to take the time to create a detailed business plan. Moreover, it will help you to make sure you’re heading in the right direction. Good business plans should outline each decision the company makes. Even among competitors in the same industry, business plans are rarely identical. But, they all tend to have the same basic elements. Also, they all state how the business intends to achieve its goals. The main planning points are Summary – Services – Analysis – Strategy – Financial Planning – Budget. It may seem good to give as much detail as possible. Yet, it’s important to be concise so readers will want to get to the end.

Feedback

Find people who know the market, the business model, the competitors and predecessors. In summary, get around people that can help you understand what works and what doesn’t in the real world. Also, talk to potential customers, and find out what they think about your hypothesis. This initial research will increase your chances of starting out on the right path. Take all this feedback, its pros and cons, and use it as a ground. After all, this is the people willing to buy (or not) the product of your idea. Make any necessary changes to your business idea, plan, and product. Recognise what people and audiences expect from your idea, and make sure to rise to the challenge.

Funding

One of the biggest challenges facing entrepreneurs is securing funding. If you don’t have the money to start your business, you may need to look for investors or apply for a loan. There are many ways to get funding for your business, so be sure to explore all your options. Another important thing to consider when turning an idea into a business is the cost. There are some startup costs associated with launching a business. These go from materials and marketing to hiring employees. It’s important to have a realistic understanding of how much it will cost to get your business up and running.

Marketing

No matter how great your business idea is. If no one knows about it, you won’t make any money. Marketing is key to getting your business off the ground. To do so, you need a strategy for your audiences to create interest in your business. Nowadays, with the internet playing a huge role, there are many ways to be at the right moment and time. Choose your platforms and strategy thinking with your audiences’ mind, not yours.

Measuring

Measuring results is important, because it lets you see what is working and what isn’t. As a result, you’ll be able to make quick changes to improve results. Yet, measuring is a constant activity. It does not only apply when a campaign ends or when you see a down on sales or customers. There are some metrics that you can use to measure the success of your campaigns.

Web Traffic. With this data, you can know how many people are seeing your ads. Yet, it’s not a unique indicator of success. For instance, views and clicks don’t guarantee further actions like sales. Be sure to check the relation between online visits and product or service’s stock.
Conversion Rates. This is a more accurate metric to use for measuring. It measures the number of people who take action after seeing your ad. For instance, things like signing up for a newsletter or making a purchase. Also, you can check which parts of your web or app get more actions. Then, you can make improvements to lead more visitors there to finish the funnel.
• Social Media Engagement. You should also keep an eye on your social media accounts. Engagement measures the number and quality of interactions from people with your brand. It also allows you to know better about age, sex, or location of people interacting. As a result, you can create more specific campaigns for those targets.

Business Ideas Without Money?

Business Ideas Without Money?

Don’t let a lack of capital stop you from turning your idea into a business! There are some creative ways to start a business on a shoestring budget. Let’s take a look:

Existing Skills

If you have a specific skill set or expertise, you can use that to start a business. For instance, you could start a blog or website about a topic you’re passionate about. This also serves as a market tool. As a result, you can start the business while detecting interested audiences.

Low-Cost Options

There are plenty of resources to prepare yourself on a shoestring budget. For instance, Google, Facebook and Twitter, offer free marketing courses. These teach you to handle their platforms for strategic goals. If you want to take an extra step, there are some low-cost courses as well. Sites like Coursera and Harvard offer full courses, with a diploma, for around $50. Another way to introduce yourself into business is networking. You can rent a low-cost office space, and introduce yourself to people there to have some contacts. You never know when you’ll need someone’s knowledge to push your business.

Partnerships

If you don’t have money to do some of the previous actions, you can find a partner who does. They can be customers, someone with complementary skills or investors. For instance, the Small Business Administration has lots of loans and investment plans. If you want to present your idea to an investor or get a loan to develop it, you better have a business pitch. What’s that? Let’s find out.

What is a Business Pitch?

A business pitch is the presentation of your project. This serves as a proposal to present to potential investors or partners. Furthermore, it outlines the idea, its potential, and future execution. This is when a well-done business plan comes really handy.

It’s important to make a strong case for your business to convince others to get on board. You may have heard the concept elevator pitch, however. This concept receives its name for being a quick outline in a short amount of time. For instance, an elevator ride. This exercise will help you to be clear and concise when promoting your idea.

Where and Who to Pitch Business Ideas?

Pitching a business idea can be a daunting task, but it’s important to remember that you’re not alone. With preparation, you’ll be able to make a strong case for your business. This will allow you to get the funding or support you need to succeed.

Investors

Investors are individuals or organizations that provide capital (money) to businesses. In exchange, they get a share of ownership or profits. Furthermore, they are always on the lookout for new and innovative business ideas. When pitching to them, be sure to highlight the business’s potential and how it will make them money.

Partners

To grow a business, sometimes it’s necessary to partner with other businesses. You can find partners who can offer funding, skills, or market access. When approaching partners, make sure to explain the benefits for both parties. Moreover, outline what each party will bring to the table.

Customers

If your idea is ready for launch, pitch it to customers to get feedback and generate early sales. If you can’t sell your idea to customers, then you won’t be in business for long. If you’re pitching them, focus on the benefits of using your product or service. Also, highlight the reasons to choose you over the competition.

The best place to pitch a business idea is to a mix of these audiences. This will give you exposure to a variety of people. Also, you’ll get in touch with different backgrounds and expertise levels.

Digital Business Ideas

Digital Business Ideas

The global business landscape is evolving, and businesses must adapt to survive. One of the biggest changes in recent years has been the rise of the internet. It’s undeniable that the internet has opened up new opportunities. Now, businesses can start, rise and solidify purely on the online field. This allows start-ups to do better and deeper real-time research. Also, they can acknowledge strategic points both on their ideas and markets. Yet, like everything in life, it has its backdowns. These apply mainly to financial and security issues. Let’s take a look at its advantages and disadvantages.

Advantages

• Costs. The internet allows businesses to reduce their costs. For instance, it allows outsourcing tasks to lower-cost providers. Also, it can make businesses go without a physic office. Yet, to achieve recognition, it would be smart to use this saved money on marketing strategies.
• Reach. With a well-done online marketing strategy, businesses can reach a global audience. In most cases, it costs way less than traditional marketing. Moreover, it leads to discovering new markets and new needs that can fit a business. Within these new markets, some of them wouldn’t have had access to your business otherwise.
• Flexibility. Being online provides businesses with the ability to be open 24/7. This can be a major advantage for businesses with customers in different time zones.

Disadvantages

• Competition. The reach also means that businesses have to compete with a larger number of rivals.
• Security. There is always a risk of data breaches and other security threats. Be sure to take all precautions needed when conducting business online.
• Dependence. Technical problems or outages happen even at top-tier companies. If a business relies too much on the internet, this may come as a big problem sooner or later. Imagine that your strategy relies on Facebook ads. How big of a problem would be a temporal inoperance or fall of this platform?

If you use it right, the internet can be a powerful tool. Its knowledge will be visible both in growth and expansion. Yet, it’s important to be aware of its potential risks and challenges.

Conclusion

Ideas are a valuable commodity, and it’s important to protect them. But once you have an idea, don’t let it sit idle – take action and turn it into a business! The process of turning an idea into a profitable business is one that takes time, effort, and a lot of hard work. Yet, it’s not impossible, and with the right tools and advice, you can make your dream a reality. There are many ways to do this, and we hope the steps we outlined in this blog post will help get you started.


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