Developing A Winning Business Idea

Published Date: 02 Nov 2017

How to Develop a Business Idea

Developing a Winning Business Idea

ENTR330 – Small Business Management.

Lecturer: Mrs. Paola Suarez

William Lawrensen (200900271)

8/4/2013

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Developing a winning business idea

Abstract

In this research paper with the topic of "How to develop a business idea", the author will be taking a specific direction in how to help develop winning business ideas. Ideas are one of the many factors which is very vital for entrepreneurs and it is one of their lifeblood to carry on, but if ideas will just stay ideas if they are not acted upon. Furthermore, it takes process as well in order to act upon ideas, and develop it into a real enterprise providing real products and services to customers. It is a fact as well that not every product out there succeeds in the market; we want our ideas, enterprises, products and services to be winners out there in the market. That is why this paper researches on how to be an entrepreneur with winning ideas and winning enterprises, with applicable yet savvy concepts which is simple enough to be referenced to.

Everything Starts from You

Everything starts from the individual! Everybody is unique, and no one else in this earth is perfectly the same. So do our capacities, thinking differ from each other in order to think and come up with brilliant ideas; specifically business ideas.

There are those whose minds are abundant with brilliant ideas for new products and services. Every single day of their lives are filled with terrific new concepts. Watchful, full of inquiry, perceptive, curious, they always seek (and often do find) the next big thing. From all those brilliant ideas they just have to pick a winner out of many other possibilities and go along with it.

On the other hand, there are intelligent and aspiring people who have a hard time concocting even a single viable idea. They are bright and earnest, but somehow imaginative ideas are quite a hard catch for them. Rightfully speaking, this research will help these kind of people the most, but it is generally useful for every aspiring entrepreneurs.

Even both kinds of people can be stuck in inaction, summed up in these two problems: First is the excessive generation of ideas and that can make forever to remain dreaming stage. Second is when we don’t have ideas, but we want to become entrepreneurs (Sutevski, 2009).

In short, having a mission and vision is the most important thing for an aspiring entrepreneur, and also the will and the work that will make them happen.

Ideas are infinite!

Remarkable new product ideas are everywhere and there is a limitless supply of concepts waiting to be commercialized, launched and marketed. They are there to be seen and pursued by those who seek them. In fact, ideas are available to everyone, worldwide, and at any moment. In some cases, an innovator in Thailand and a thinker in Brazil could be enlightened at the same moment in time.

Ideas can be small and simple, or large and complex. (Tracy, 2002). A passion for a subject may be the genesis of a compelling idea; derived from time enjoying a cherished hobby.  A new product may result from a tinkerer who sees an opportunity to transpose an existing concept to a totally new context.  Or someone might envision blending two disparate disciplines into an entirely new field of endeavor.

Brainstorming is generally a good idea as it lets ideas flow freely and a lot of them usually opens and sharpens the mind of entrepreneurs.

For entrepreneurs who have trouble generating ideas on their own, they can look to universities that have technology transfer offices. Research universities have a wealth of ideas awaiting the arrival of someone who can take the products to market.  If an entrepreneur can take a researched idea, validate it in the marketplace and license it from the university, he or she can commercialize the product it as though the idea were his own.

Knowledge is Power!

 Ideas are generally developed from known facts; not from thin air. Especially when your mind is not running around with crazy, brilliant ideas like the imaginative people would.  

Business builders who generate bold ideas possess a high level of knowledge acquired by study, instruction and experience. (Arjuna, 2008)

Many high achievers have benefited from lessons learned from earlier educational and prior career experiences that have become foundational underpinnings of understanding.

Ideas are born by listening to customer needs and their perspective on new concepts; from data gathered on products manufactured and sold; from marketing research summaries; from the results gained from pilots of programs, and by observing established procedures.  

For example, an employee may see an opportunity to start his or her new business by automating a labor intensive and costly business procedure, via a software application that an entire industry may purchase.

Knowledge also means market research. Use facts and actual data on the field while utilizing knowledge to develop your business idea, and your enterprise as well. You always need to know the concrete form of the idea or concept, and how the things related to the enterprise such as leadership, marketing channel, organization, marketing segment, customer targets, and finances will branch out from it.

Connecting those dots

 Genius or idea generation is an epiphany that results from a person’s ability to mentally connect the relationship between two or more different but related facts . When joined together, they create a clear view of something novel which has never been seen, developed or commercialized before.  60 years ago, H. Tracy Hall, a research chemist and university professor, invented and commercialized man-made diamonds.  His idea emerged as he noted several known facts;

a)    Mother nature forms natural diamonds abundantly,

b)    Via a chemical process,

c)    Intense pressure, and

d)    Significant heat.

e)    All are powerfully focused to change the internal structure of carbon atoms.

From these facts, he formulated an idea as he theorized that he could couple a natural chemical process with a powerful physical device to manufacture real diamonds by replicating the powers and actions within the earth.  He envisioned, in his mind, injecting a chemical catalyst into a tiny chamber filled with carbon crystals that would endure extremely high temperatures and enormous pressure.

Based on his hypothesis he developed a design, purchased the materials, built a press system and began to test his theory of producing synthetic diamonds. Did it work?  The answer is yes!  Now many years later, tons of manmade diamonds are sold for cutting, grinding and drilling worldwide, every year.

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Test the Idea

Using the example of Dr. Hall, he followed what is known as the scientific method. In short, it’s a process that begins with an observation of a situation; perhaps a problem or opportunity.  The observer then asks himself, what is happening and why.  This leads to the gathering of information followed by a thoughtful prediction that might explain the matter.  The process continues with an experiment to test the prediction, followed by the collection, analysis and interpretation of data.  The process concludes with a tested and viable solution.

In sum, great ideas are ultimately proven to be successful via the scientific method of discovery (Uris, 1986).

Ultimately, this is the time where an enterprise is usually built by the entrepreneurs. Remember that the idea already takes shape at this time, where you actually test the idea. We never know whether the idea works until we test them, right?

Don’t forget to plan the future of your enterprise too, as usually these will be the times critical to your business, as will be discussed in the next section.

Timing of Ideas

Some innovative ideas will meet the needs of consumers today; other concepts will be conceived now but are not anticipated nor sought yet by shoppers.

 Consider Xerox Parc in the 1970s, which developed many of the technologies we use today. For example, scientists at the Parc developed laser printers, personal workstations, Ethernet, fiber optics and the graphical user interface. Its mission was to develop the "office of the future.’ (Wikipedia, 2013)

We can remember that case from the Motorola Iridium Satellite communications. They have developed the idea of the brilliant mobile phones that we have today, but they simply fails. They came too fast and at the wrong time as well, when the hype is too high but the reality is low. Now, mobile phones, smart phones are part of our lives like never before.

Most of these now famous products were imagined more than thirty years ago and came to market long after the initial idea was born. So we should look at the times too after testing the ideas. When they fail, ask why? The times will often tell us.

One of the successful innovators is the late Steve Jobs who uses good timing to his advantage with his revolutionary products at his time, such as the Apple iPhone, iPad, iPod. The Samsung Corporation, although not the first mover, but they correctly read the timing that they should quickly join the Smartphone industry, and the result is that they can compare to Apple in their Smartphone innovativeness and sales. Often you don’t have to be the original inventor to be successful with your business idea; the most important thing is the timing to introduce your products and ideas.

Is the Idea a Good One?

An idea is worth nothing until it has been commercialized and there are paying customers. Some ideas will be wildly profitable; others will be a failed dream. Learn to eliminate the bad ones quickly; don’t waste your time, energy and money.  In the end, remarkable ideas lead to compelling products purchased by vast markets of enthusiastic buyers.  The goal of any dreamer is to determine what idea will ultimately be the best choice among several options.

Conclusion

Entrepreneurs have to fully understand that these concepts are not only just for getting good ideas but also needs real work. Entrepreneurs are not just dreamers or doers; they are both, and that is why they are a unique batch of people. In summary, entrepreneurs need to understand and be open minded to these six concepts which helps them to find not just ideas, but winning ideas and acting on them in order to make those ideas into existence, into something which is commercialized and have paying customers. Even the most brilliant idea could be a failed dream; vice versa, even the simplest idea could be wildly profitable too. These six concepts on how to develop winning business ideas will help entrepreneurs challenge themselves to find better ideas and make them happen, become a wildly successful and sustainable product and/or service, and move on to the next big thing.

The six points summed up: First, know there are ideas just for you. Find them! Second, look and see problems and opportunities within your environment. Third, based upon knowledge, imagine solutions to what you find.  Fourth, be passionate about your ideas. Fifth, test your ideas.  Will they work and will customers want to buy them? Sixth, Is the market ready for your ideas? Is now the time, or later?