How to turn an idea into a business model
Start writing a post
Lifestyle

How to turn an idea into a business model

We have the best business idea in the world

24
How to turn an idea into a business model


No one else is selling those products or services that we have in mind, and we have the talent, knowledge, partners, and passion to turn them into a profitable business.

No one else is selling those products or services that we have in mind, and we have the talent, knowledge, partners, and passion to turn them into a profitable business. However, we present our project in competitions of entrepreneurs, we talk with investors, even with other entrepreneurs and we can't get anyone excited.

What may be failing? As in 90% of cases of novice entrepreneurs, you have a good invention idea, but not a developed business model. This means, in a few words that you don't know how you are going to produce or how you are going to sell. That you don't have basic information about costs, sale price, and profit margin. You don't even know who your competition is.

Understanding the difference between two very different concepts is essential for you to move forward with your project. But more importantly, you are able to move from the idea to the business with a solid model, which becomes the guide for every step you take in the future. And here we explain how to do it.

1. Measure the opportunity

The entrepreneurs are often so enamored of their invention idea that they forget to confirm the actual interest of your market, or what competition will face. And then they start with businesses that in the end do not go beyond being self-employed, or have no economic viability.

In this first step, you have to answer any questions and get to work hard to get the answers you need. What is the market plan that you are going to attend? Who is your client? (Is it a niche or is it a mass market?) What will be your value proposition? Is that differential going to put you ahead of the competition? What is the size of your target and what percentage of total sales can you aim for? Can you grow organically or will you need strong capital investment to start?

According to what the current market players are doing, will the cost in marketing be high or moderate? What are the trends that are moving the sector and which could you get on with your current resources?

2. Define the pillars of the model

This is the time to establish what resources you need to bring the idea to reality. And of course, to do it in a unique way, attractive to your customers and profitable.

Establish the characteristics of your product and patent service; what will be the production, sale, and delivery to consumers; and what resources are you going to need? That is, you have to work on your list of supplies, services and suppliers, and in the steps of each operational process.

3. Valid

As you will see, they are only three steps but an exhaustive job. The last is to build a minimum version of your product or service and do the first tests on the market. That will allow you to confirm the interest in your proposal, that you are offering a tangible value, that the price is attainable for your consumers but that at the same time allows you to generate a utility.

And above all, you will obtain valuable information about your customers' consumption or use experience, and you will be able to make the necessary adjustments before formally starting with the sales.

Validating your product or service is also essential to confirm that your suppliers are the right ones, contact the first potential customers with a specific proposal, seek alliances and join forces (for example, with other small suppliers in your same sector) and, in case If necessary, keep looking for partners.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
Featured

Black Friday is back to being Black Friday

This year, malls are standing up against Black Friday beginning on Thanksgiving. Doors won't be opening until Friday morning.

407
Lifehack

Last week my twitter feed was full of exclamations of how excited people were that our local mall, Westmoreland Mall would be closed on Thanksgiving Day this year. For those who work during the busy holiday days and hours, a celebration was in order. For the die-hard deal finders and shoppers though, they didn’t seem very happy.

Keep Reading... Show less
Politics and Activism

Is Thrift Shopping *Actually* Ethical?

There's been a recent boom in the popularity of vintage style looks and up-cycling thrifted finds to sell at, usually, an outrageous price. Is this ethical? Or does it defeat the whole purpose of thrifting in the first place?

1655
Is Thrift Shopping *Actually* Ethical?

One day, I was scrolling through Twitter and came across a tweet about upper-middle-class class people thrift shopping. I personally was against the up cycling/re-selling trend because I thought it to be greedy. Then, I began to see more and more tweets, and then stated to see ones about those who buy thrifted, name brand items and sell them for what they're actually worth instead of the very low price they got them for.

Keep Reading... Show less
Featured

Holidays With the Family?

Should retail outlets close on holidays so their employees can be with their families?

2545
Pexels

For the past few years, having stores open on Thanksgiving has become a popular trend. The sales have started earlier on the day known as Gray Thursday. Now, the Mall of America has taken a bold stand and is closing its doors on Thanksgiving. They are very excited in giving the day back to their workers so they can spend time with their family.

Keep Reading... Show less
Featured

Black Friday: Explained

Time to question this unofficial corporate holiday.

5236
Flickr/John Henderson

On a personal level, Black Friday has always confused me. Everyone just ate a ton and spent all day with their families—why would we want to go out and vigorously shop, fighting crowds? I totally see why other people want to go do it, but I’ve never quite understood the concept myself. While I’ve been Black Friday shopping once or twice, I don’t get that excited about it unless it’s an opportunity to spend time with family or friends. Don’t get me wrong; I am the queen of bargains. Still, I never seem to have the energy to go out into the jungle of shoppers early the day after Thanksgiving, or even immediately after Thanksgiving dinner. Many people, though—including my loved ones—are enthusiastic about Black Friday shopping, and it seems most other Americans are the same way. So, it’s worth looking at the reasons for this commercially-driven, unofficial American holiday.

Keep Reading... Show less
Featured

#OptOutside This Black Friday

I am opting to go outside this Black Friday, and I hope you do so as well.

6964
Ross Woodhall

The day after Thanksgiving has always been regarded by many as the beginning of the Christmas season. While not a federal holiday, many people take off work, spend time at home with their families, and enjoy the beginning of the holiday season. This Friday off turned into a prime opportunity to begin the never-ending chore of Christmas shopping. Soon it became one of the busiest shopping days a year, which companies capitalized on by bringing the best deals of the year to this day we know as Black Friday.

Keep Reading... Show less

Subscribe to Our Newsletter

Facebook Comments