Entrepreneurs : How to evaluate creative ideas to launch a Successful Business
Analysis of the strength of the project
A creative idea is only the first step. To move towards a successful business, we need to evaluate it from different perspectives. Here are some guidelines to think about the strength of the project and the attractiveness of the market …
Previously we reviewed some guidelines of the process leading to the emergence of business ideas. However, the birth of the idea is only the first step. To move toward building a successful company, we need to evaluate the strength of the project and the attractiveness of the market.
‘s internal evaluation of the company and its capabilities to pursue the idea of the new product is an important topic of analysis to discern the suitability for development. Here we must consider, among other things, aspects such as access to specific know-how, the investment needed to produce the technology, skilled human resources and capacity to comply with legal restrictions.
Technical soundness: The possibilities to surround ourselves with professionals who can provide technical expertise on the development of consistent product or service offering (production systems, R & D, procurement, etc.) development of marketing systems (distribution channels and sales force) and industry characteristics are likely to be gravitating to success.
Funding: An extremely important aspect for developing a business idea is linked to the existence of certain financing possibilities. The ideas most likely to raise funds will have a better assessment than those that exhibit greater difficulties.
Access to technology: Access to technology deserves reflection closely associated with the product or service to be developed. There are ideas that involve major investments that require equipment and other hard to reach. Sometimes we have to work with technology that has not been tested by us. All these factors must be considered in the evaluation.
Human capital: The ability to get or have used the profile required by the project should also inform the implementation decision. Too often companies underestimate this issue and, later, face a myriad of problems. Identify the core skills needed and ensure they have the right people are critical success factors of implementation.
Regulations: Legal regulations for the development and possibilities to fulfill (associated with the costs of implementing the idea) should also be considered. If we go without a proper analysis of this factor, perhaps we’ll find out later that our project is not viable, when we have invested time and money.
Market Attractiveness
The attractiveness of the market in which we venture to our idea is linked to its current size, growth potential, accessibility to customers, the expected return and the level of competition exists. Market size: At this point, we must take into account the perspectives that may exist a priori on the volume of sales that could reach the project according to current market conditions. This estimate is quite subjective, depending largely on the perceptions that team members have about the likely response of customers.
To reduce the weight of subjectivity, it is important to every idea we’re going to evaluate, have as much information as possible. So we have a clearer appreciation of the possible market response. Logically, the evaluation will be easier for products or services where the need already exists and is articulated. On the contrary, it will be difficult in cases where the offer is new.
Potential for market growth: In addition to the current situation, it is also important to estimate the expected growth of the market. What will be the response rate for the market? Will our project to absorb this growth? Will maintain its market share against the entry of new competitors?
Accessibility customers: The market segments that will serve the new product should be accessible. This will ensure that the efforts undertaken at the development of distribution channels, sales force and communication will report results.
Accessibility can be for two reasons. On the one hand, it is possible that the novelty of the idea to generate a strong attraction to potential customers, willing to find the product or service to find it. Apple, for example, generated high expectations for the launch of the iPhone made by engaging stakeholders in long lines to buy it.
Another alternative is that the sales force and distribution put it within reach of the customer so that he will find it without much effort. No need to explain in detail the movements of companies in the confectionery sector to ensure that your product is face to face with the prospect.
The expected return: It should be noted that the notion of profitability involves two aspects to achieving profitability and time to get it. There are many methods to analyze the potential return comparatively a new idea about alternatives. Associating the evaluation criteria of NPV, IRR, recovery period, and so on.; Give an objective qualification on the subject of analysis.
The competitiveness of the market: In our assessment, we must consider the degree of competitive rivalry that may face the project at various stages of implementation. Again, be different for innovative ideas that will develop its market for ideas that are inserted into markets where the need is already articulated. It is important to support the assessment of this issue in a consistent analysis of the competitive sector.
In short, many ideas fail for lack of review of some key aspects that help strengthen the entrepreneurial drive. These points we mentioned provide security and assist in the launch to ensure the positive outcome of the business idea.
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