Tips from BUSINESS IDEAS Forum
|Here you can find tips and guidance how to maximize your benefit from using the BUSINESS IDEAS Forum.|
Look for the "" sign to see how the discussions in the BUSINESS IDEAS Forum can help you to generate and eventually select the appropriate business strategy.
There are basically two situations you might be facing.
"There is not one best way to create business strategy, nor is there one best form of organization. The world is full of
contradictions and the effective strategist in one who can live with contradictions, learn to appreciate their causes and effects and reconcile
them sufficiently for effective action.
There are four basic steps you should go through while looking for a business idea you would consider to turn into a real business. When you think you have some business idea worth trying, try to create the business strategy for it first. This helps you to discover the strength, weaknesses and potential pitfalls you might encounter during the implementation.
Read some business ideas of different people and learn how others react to them and what information their usually need. You might find some similarities with your market or geographical areas, which could give you some ideas what direction you might choose and what business you might try.
Browse business ideas in the Forum that BUSINESS IDEAS Forum members turned to a real business.
Get a list of successful BUSINESS IDEAS Forum members who have achieved to make a business with other members.
- your objectives and five forces describing the environment. Analyses of your
business environment is considered to be one of the most important factors directly influencing success of your business but it is usually so complex that the attempt to thoroughly describe it might be a goal one can never
reach. Companies operating in the particular business have the undisputed advantage, in comparison with start-ups, to use their current business knowledge of the environment and apply it for the new business direction. When these companies
want to diversify their business, they often do it in a direction, which is somehow related to their present business. They are comparing how closely is their present market with its
products, customers and geographical areas related to the new direction of their business. The more is the business related the less risk they usually face.
Search for businesses in the forum, which might be somehow related to your own business intention. Follow the discussions of selected postings to learn any market similarities you might find useful for implementation of your business idea. The great thing about the Forum is that it is constantly updated. This means that in case you need more information or you can not find information related to your business intention, you are welcome to post your question in the Forum. Your chance to get answer from somebody else is about 39%. This is the rate of initial postings, which get currently commented.
- business environment.
For the small entrepreneurs it is usually simple to review their resource needs to start some small business. Most of them think like: "Just give a try and lets see what comes up". This approach is acceptable as long as
the resource demand and/or risk of loosing it are low. After they find that there is a potential to make some money, they usually, in order to limit uncertainty, start to use the incremental approach to grow their business. Their resource needs gradually
grow with the growing business. The things get tougher when the initial resource need is significantly higher than the imitate return. In this case most
companies create a list of possible scenarios their might face during the business development. Then they choose the scenario their think best reflects the given business environment conditions and
simultaneously complies with the maximal risk the company is willing to undertake.
Explore the postings, which are related to your existing business or your business intention. Learn what resources people usually ask for and how they are trying to network with other users of the BUSINESS IDEAS Forum site to get them. Remember that certain user of this site could have the prospect to provide you with a unique resource, which might give you a competitive edge. You can also make a posting and ask the users community to give you some ideas or even offers for cooperation and resource sharing. Your chance to get answer from somebody else is about 39%. This is the rate of initial postings, which get currently commented.
We have learnt about one interesting feature from the Forum. It is the way the information exchange takes place there. We have found two distinct approaches.
- A user of this site makes his posting asking others for concrete help or looking for specific information or business partners. He is “pulling” the information because he wants to get specific information and he expects to
get replies to his questions.
The advantage is that he gets information, which is directly and often only related to his question.
The disadvantage is that there is a risk of missing something. The questions like “Do I ask the wrong questions or do I miss something?” might be always worth of consideration.
- A user of this site gets offers and proposals from others. The information is “pushed” upon the user and might not be directly related to his original question. Subscribe for interesting business ideas being published in the Forum.
The advantage is that the user gets broader perspective of the problem and thus might decrease the risk of missing something. The users can get help from an expert having the specific knowledge to solve the problem.
The disadvantage is the information overload or even spam. The cases when you think you get too much irrelevant information.
- A user of this site makes his posting asking others for concrete help or looking for specific information or business partners. He is “pulling” the information because he wants to get specific information and he expects to get replies to his questions.
There are six basic steps you should go through while developing your business strategy. Usually you might contemplate more than one strategy to have the possibility to decide, which strategy would be the best to make your new business ideas come true.
-What is your time scale?
-What are your products?
-What are your markets and customers?
-What are your geographical areas?
-What technologies are available?
-Is your strategy based on cost leadership or on products differentiation?
-How do you want to measure your success?
-How you can utilize your present products and markets?
-How you can utilize your present production and technology?
-How you can utilize your present financial resources?
-How you can utilize your present human resources?
-What is the thread of entry taking into consideration economies of scale, the capital requirement of entry, access to distribution channels, cost advantages independent of size, expected retaliation, legislation and or government action, product differentiation?
-What is the power of buyers and suppliers?
-What is the thread of substitutes?
-What is the intensity of competitive rivalry, i.e. the extent to which competitors are in balance, the market growth rates, high fix cost, high exit barriers, etc.?
-What is the level of competition versus collaboration, i.e. buyer-seller collaboration, collaboration to increase buying power, collaboration to built barriers to entry or avoid substitution, collaboration to gain entry and competitive power.
What are the critical success factors having in mind your answers for question from step 1, 2 and 3? Make a list of these critical success factors.
-What are your core competences, i.e. your capabilities that are vital for gaining competitive advantage through critical success factors? Make a list of the core competences.
-Scrutinize the list of core competences to ensure that it is sufficient to give competitive advantage.
-Identify your performance standards, which need to be achieved to outperform competitions.
-Assess the extent to which competitors can imitate each of the core competences.
-Decide the impact of potential competitive moves and how these might need to be counteracted.
-Which strategy is appropriate as far as concerns the stage of product life cycle, i.e. will the strategy bring money before the product is obsolete?
-Which strategy is most suitable taking into consideration given competences and resources, i.e. which resources and competences are difficult to imitate?
-Which strategy fits best into the value chain, i.e. existing resources you already have?
It is important to know that none strategy will be appropriate for ever. The dynamic environment will sooner or later render the strategy ineffective. Therefore it is essential that the strategy is continuously aligned with the changing environment. This can be done by regular finding answers for questions in steps 1-5.