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![Fall in love with a PROBLEM.
Don’t get infatuated with a solution.
[Allows you to try new solutions if one does not work]](https://image.slidesharecdn.com/convertingideasintobusinesses-110709103907-phpapp01/75/Converting-ideas-into-businesses-11-2048.jpg)
![Exercise 1
Identify the problem or need that
you want to own
Present it as:
1. The situation/environment [e.g. accommodation choices in
Gurgaon are either too expensive or too basic & dirty]
2. The problem you want to address [e.g. “We want to
address the problem of finding smart, cheerful accommodation
at reasonable prices]](https://image.slidesharecdn.com/convertingideasintobusinesses-110709103907-phpapp01/75/Converting-ideas-into-businesses-15-2048.jpg)
![Business model / financial
model
• Three key questions
– How much will you sell at
– How many will you sell
– Where will you sell… and how
• Who will pay for it – [user and buyer
could be different]
• Translate the above questions into a
financial model](https://image.slidesharecdn.com/convertingideasintobusinesses-110709103907-phpapp01/75/Converting-ideas-into-businesses-24-2048.jpg)
![Competition
• Who will you compete with?
• Why would someone choose you over
them?
• Why do you have a chance to be a
dominant player?
In many cases, status quo [i.e. doing
nothing] is the biggest competition](https://image.slidesharecdn.com/convertingideasintobusinesses-110709103907-phpapp01/75/Converting-ideas-into-businesses-25-2048.jpg)
![Exit potential
• How is the investor going to earn a good
return?
Sale to a strategic investor
Exit by selling stake to a growth stage investor
IPO?
[Note: Exit does not mean that the
entrepreneurs has toExit]](https://image.slidesharecdn.com/convertingideasintobusinesses-110709103907-phpapp01/75/Converting-ideas-into-businesses-28-2048.jpg)
Uploaded byPrajakt Raut
Converting ideas into businesses
This document provides guidance on developing business ideas. It emphasizes that having a good idea is not the same as having a business plan. To evaluate an idea's business potential, one should analyze its concept, requirements for delivery, needed team, market size and opportunity, competitive advantages, business model, competition, risks, funding needs, and potential exit. Participants are instructed to identify a problem, consider ideas to address it, and make a business case evaluating an idea against these factors. Developing business ideas requires analyzing feasibility, requirements, and risks rather than just having a solution concept.
In this document
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Discusses the transition from ideas to business implementation, emphasizing the importance of planning.
Highlights the significance of solving problems through improvements, offering examples of making products or services cheaper, faster, and better.
Illustrates the difference between a business idea and a viable business plan, detailing elements like real estate, marketing, and processes necessary for scaling.
Explores different business objectives like lifestyle vs. scale, and stresses that ideas require thorough planning and adaptation.
Engages participants in identifying problems and brainstorming potential ideas to address those needs.
Outlines the necessary evaluation criteria for business ideas, including concepts, market size, competitive advantages, risks, and funding needs.
Addresses funding requirements for business growth and explores potential exit strategies for investors.
Encourages creating a comprehensive business case, advising to reflect upon and refine ideas.
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Similar to Converting ideas into businesses
Converting ideas into businesses
- 1. Converting ideas into businesses Prajakt Raut Co-founder - Applyifi Founder – The Hub for Startups
- 2.
- 3. Can solve a problem Fulfill a need Improve quality of life Improve something
- 4. Examples of cheaper: Lower price 0r accessible to more people e.g .EMI? Cheaper Faster Better Fuller Nicer Nearer Improve something
- 5. Product Service Value Business model New users New uses
- 6. Having a goodidea is not the same as having a business plan.
- 7. A coffee shopfor teens is a cool idea… …but is not the same as Setting up a chain of coffee shops.
- 8. A coffee chainrequires • Real estate/franchising • Brand identity • Pricing strategy • Marketing • Supply chain • HR, legal, finance • Training • MIS • Fund flow/cash flow • ROI & capacity utilization analysis • Facilities management • Processes • Standardization • Org structure • Vendors Etc. etc., etc….
- 9. How much ofeach of these elements depends on whether you want to have… A lifestyle business OR A scale business
- 10. Objective of today’ssession To make a business case around a good idea.
- 11. Fall in lovewith a PROBLEM. Don’t get infatuated with a solution. [Allows you to try new solutions if one does not work]
- 12. To have onegreat idea, have many of them. Thomas Edison
- 13. An idea meansnothing. Implementation is everything.
- 14. Plans are useless. Planning is priceless. Plans change. Planning allows you to adjust your plans in implementing your idea. Your idea or venture should not fail because your plan failed. Rework your plan. Adjust your solution.
- 15. Exercise 1 Identifythe problem or need that you want to own Present it as: 1. The situation/environment [e.g. accommodation choices in Gurgaon are either too expensive or too basic & dirty] 2. The problem you want to address [e.g. “We want to address the problem of finding smart, cheerful accommodation at reasonable prices]
- 16. Exercise 2 Statethe ideas that address the problem that you chose Present all the ideas you considered and explain why you discarded some.
- 17. Evaluating the business potential of an idea 1) Concept 2) What will it take to deliver? 3) Team required for this 4) What is the size of the opportunity 5) Defensible competitive advantage? 6) Business model / financial model 7) Competitive landscape 8) Risk factors 9) Funds required and use of funds
- 18. Concept • Nomore than one short, unambiguous paragraph – Reader should not need to read it again to understand – Capture the essence in a one crisp line – Use simple language – Sell the potential
- 19. What does ittake to deliver? Brand Strategy Value proposition & positioning Target Audience Pricing Brand Personality Product Procurement Production Supply chain Vendor management Capacity utilization Portal Technology Platform Look & Feel – user experience Ordering mechanisms – including ‘order on phone’ Payment gateways & methods Logistics Delivery & fulfillment mechanisms Warehousing Logistics partners Order Management Marketing Marketing strategy as well as tactical ideas Media Plan & Budgets CRM Strategies & Ideas including loyalty programs, referrals, etc. Team Roles & Responsibilities identification HR policies Team hiring & retention plan E-commerce
- 20. How many vendorsare involved? 19 Partners / Vendors involved in the implementation process Technology & portal development partners 1. E-commerce capable Technology partners 2. Hosting partner 3. User Interface partner 4. Payment Gateway 5. Testing & bug fixing experts Operations partners 1. Packaging & printing partners 2. Logistics partners 3. Recruitment consultants 4. CRM partners/CRM platform vendors 5. Database vendors 6. Process Training Consultants 7. Soft Skill Training Consultants 8. Outsourced Call Centre Marketing & Brand Communication partners 1. Brand identity specialists 2. Photographer 3. Direct Marketing agency 4. Social Media Agency 5. Advertising Agency 6. Media Buying agency
- 21. Team required todeliver • “VCs prefer A-Class teams with mediocre business plans over B-Class teams with great business plans” • Diversity of skills, domain expertise critical but with similarity of passion • Ideally, find partners with similar aspirations, motivations and financial situations
- 22. Size of theopportunity • Break it down to last detail – Total market size – Addressable market size • What price point and how does that translate into revenue • Test the assumptions
- 23. Defensible competitive advantage? • Uniqueness • Scalability • IP • Replicability
- 24. Business model /financial model • Three key questions – How much will you sell at – How many will you sell – Where will you sell… and how • Who will pay for it – [user and buyer could be different] • Translate the above questions into a financial model
- 25. Competition • Whowill you compete with? • Why would someone choose you over them? • Why do you have a chance to be a dominant player? In many cases, status quo [i.e. doing nothing] is the biggest competition
- 26. Risk factors •Market risks? • Financial risks? • Competitive risks? • Business model risks? • Execution risks?
- 27. Funding needs •What do you need the money for? – Be specific • How much do you need? – Be definitive
- 28. Exit potential •How is the investor going to earn a good return? Sale to a strategic investor Exit by selling stake to a growth stage investor IPO? [Note: Exit does not mean that the entrepreneurs has toExit]
- 29. Exercise 3 Makea business case for your idea
- 30. Evaluating the business potential of an idea 1) Concept 2) What will it take to deliver? 3) Team required for this 4) What is the size of the opportunity 5) Defensible competitive advantage? 6) Business model / financial model 7) Competitive landscape 8) Risk factors 9) Funds required and use of funds
- 31. Sleep over yourideas. More often than not you will get over them. Dream big. Dream often.