Yes you got a super cool money making idea,now what to do?? Here is the small and quick guide describing next phases of an idea. Once you have a raw idea we need to make it concrete by answering a few questions and giving some statistics as a proof.For an example (market survey for user behaviour). So lets Start with it. These are the question one must ask himself before converting that idea into a business. 1. What is the problem ?
Under this section you will provide with the problem definition of an idea to which you are giving a solution. Describing the problem definition is really important as it will keep the business goals clear and you will be able to spot your target audience.
2. Current situation?
In this section you are supposed to write the current situation in the market like how people are solving problem you had mentioned in the first point and what are the difficulties they are facing while solving the problem. And by implementing your idea how efficiently you will be able to solve that problem than current solution. We will take an example of an e-commerce site where we can buy almost everything. Earlier people used to physically visit the shop and then they used to buy the things but in a shop they were restricted to certain choices but on the other hand e-commerce solution gives them a variety of choices to select.Also while writing answer to this question you will build confidence for your idea. Which is the most positive part for a successful start.
3. Market Size
Now here is the task of the survey which is going to help you through out your business phase i.e what is your market? Who are your customers? What is the market size? This will help you to realize how much scalable your idea is and how much it is going to be successful in the near future. So go ahead invest a lot of time in market survey to find out how much is your market size.
4.Projected value of the project
After answering to third question you will get a hang on how much money you need to start and to sustain in the market . Under this section you need to consider each and evry small thing which you will need for execution of your idea i.e interms of human resource or other resources and how much they are going to cost .Projections should be done in such a way that it they should be realistic not overprojected or underprojected. This will help you in raising the money from VC's .
5. Revenue Generation Strategies
This is the most important part . How you are going to make money out of this business. Go for it and mention your revenue generation model and its yearly projections with growth chart. However be ready for the multiple iterations of this point. Because over the time of execution your revenue model going to change and its going to be more concrete. But for the time being write down the current model.
6. Competitors
Under this sections you will mention the competitors in the market. You need to mention the following points under each competitor-
1.Name
2.Their current position in the market
3.Their market penetration
4.Difference between your value proposition and theirs.
5.Their rough revenue model
6.Their plus and minus points.
After collecting all the information of your competitors you need to do swot analysis that will help you to improve your concept. We are soon going to post about how to do swot analysis. So stay tuned till then .
7. Where do you find yourself different than others and over the 5 years down the line.
The most interesting question to answer. so go ahead and write down the realistic answer to this point and with some justification to the answer. e.g using projetions,pie charts etc.
And you are done. By answering to this 7 questions you validated your idea and now you are all set to plan an execution model for this idea. Now you have a concrete plan with valid proof for your idea . I am sure you will be confident about your idea after answering to this 7 questions.We wish you all the best for your business idea. Please comment if you have any suggestions or queries.
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