Business ideas are one of the most important prerequisites for the formation of a business. One of the important things in the success of a business is to evaluate the idea and how to advance it and create a business.
Steps from Business Idea Formation to Business Creation
On the way from idea to implementation, we are faced with 5 steps. These cases are not inflexible in nature; Rather, depending on the business and the ideas related to its management, it determines the things that we should pay attention to and the time to pay attention to them.
First Step – Discovering and Identifying and Evaluating the Initial Idea
Different sources may be used to generate business ideas. Regardless of the fields of idea formation, we may use different methods to use and implement these ideas. There is also a possibility that while using any of these methods, we will realize that the implementation of our ideas for creating a business is not suitable and needs to be changed.
From the series of methods of implementing business ideas, the following can be mentioned:
1. Think Tank Team
A think tank is a committee consisting of creative people for business ideation who are skilled in business formation and development. After reviewing the existing ideas, if they consider it suitable and ideal, this team will take action to form the business.
2. Processing Ideas
In this method, we classify existing business ideas. It means that we examine and describe the advantages and disadvantages of our ideas. Our idea may be to meet an unmet need in society, or to present a product with a new shape compared to the existing models in the market, to produce a product with better quality or a lower price or produce a product with a better competitive advantage than the products produced by competitors. By examining and classifying these items, we can offer a product or service that is unique and people are willing to pay for it as much as necessary.
3. Identification of Business Models or Scenarios
The business model expresses how the business is supposed to operate in producing a product or providing a service. The business scenario is also a process in which the main elements of the business are put together, starting from the preparation and supply of raw materials and leading to the production and sale of the final product.
4. Review of Business Ideas and Scenarios
These reviews should be done informally at first. Informal investigation may be as limited as telephone calls to informed persons. During these investigations, we are looking for whether the idea we are considering has meaning and concept, in other words, whether it is possible or not. During informal reviews, some ideas may be removed.
In the following, we have to do some official reviews of the ideas and scenarios we are considering. In the formal evaluation of ideas, scenarios and different business models, we can use preliminary studies, feasibility studies, market research and marketing studies. This aspect of the review may also lead to the exclusion of some existing models, ideas and scenarios.
Second Step – Review and Evaluation of Idea, Scenario and Model
At this stage, we use the following options:
1. Further Refinement of Scenarios and Business Models
In addition to the official investigations that we did in the previous stage, we obtained information that we can rely on in this stage to perform more and deeper refinements and investigations.
2. Feasibility Studies
This style of study is a comprehensive and detailed assessment of various aspects of the market, operations and management and financial issues. After conducting feasibility studies, we need to review and analyze the results. In the analysis of these studies, we examine its accuracy and comprehensiveness. We check whether it has answered all our mental questions and unknowns or not. Examining the results of feasibility studies will be a precursor to the third step.
Third Step – Decision to Implement or not to Implement
This step is the most important step in the entire process of creating and developing a business. We only take one step towards building a business and it will be difficult to come back from it. If we have not solved the unknowns, concerns and limitations facing a business project, we should not proceed to implement the project.
In this regard, we may face disagreements between the members of the advisory committee or the think tank team; that is, some believe in preventing the progress of the project and others believe in implementing the arranged ideas and scenarios. This issue is completely predictable and it is better for the parties to withdraw from their position to some extent and leave the decision-making to the people who abstain.
Another important factor in the implementation of a business project is commitment to implementation. That is, people must be committed to the implementation of predetermined scenarios. We should also consider this issue, contrary to what people think, starting a business requires a lot of time and effort.
Fourth Step – Designing a Business Strategy
If after the investigations, we decide to start a business, we will need to design and prepare a business strategy. This strategy is an initial plan of the overall business flow that clarifies and defines the path. Businesses usually fail and have many problems due to lack of proper strategy. While designing a business strategy, we should know that we will face unforeseen problems along the way, but our adherence and continuity in the path of this strategy will be the key to success and overcoming unforeseen crises.
Fifth Step – Business Operations
From this stage on-wards, the business has started seriously and officially, and its maintenance and continuation require our constant attention and care. The executive operation of the business is heavier and more difficult than its foundation and ideation and requires deep management skills. Therefore, every person who is a good ideator cannot necessarily be ideal in the field of business management.
Up To Sum
Starting a business, from idea to implementation, requires continuity and logical steps. With the help of the five steps mentioned above, we can start and finish our desired business from an initial idea.