July 31, 2014 by Ife Adedapo
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People are inspired by brilliant business ideas everyday but the ability to realise them is important. IFE ADEDAPO writes on how to execute the ideas
It is often said that aspiring
entrepreneurs find it easy to think of many business ideas but are at
crossroads when it comes to implementing them. Business experts say they
are prone to pitfalls in taking crucial decisions as a result of their
inexperience.
According to some successful business
managers, the ability to turn ideas into money-making ventures lie in
the knowledge of business management techniques as well as the ability
to manage through problems when they arise.
Some start-ups have failed in their first
year while others struggle to remain afloat but experts have
highlighted the following tips on how to implement good business ideas.
Solve a problem
Experts say in establishing a business,
the entrepreneur must be able to meet the immediate needs of the target
market by solving their problems. According to them, the ability to do
this will stand an entrepreneur out because most start-ups emulate their
competitors without creating their own niche.
While citing the example of online shops
in the country, an entrepreneur, Mr. Tunde Babatope, says these
companies have been able to satisfy the need for convenience in shopping
by providing a platform where goods can be bought online and delivered
to a client’s doorstep.
He adds that the present trend in
e-commerce is a revolution that other entrepreneurs have taken up and
are adding more value to.
Babatope concludes by saying all
successful companies, products, or services must enhance the lives of
their customers by eliminating a problem.
Understand the market
In order to understand the needs of the
market and how to meet them, experts have advised that market research
should be conducted.
According to them, the research will
assist in understanding where the product or service fits, who the
target consumers are and the acceptable price range.
The Managing Director, Bestway Corporate
Services, Mr. Victor Abayomi, says that the most important aspect of a
feasibility study is the market because if the manager does not know
what his or her prospective customers want, then he or she will not be
able to produce or supply what they need.
He adds that understanding the target
market will help any business person to excel, saying that feasibility
studies are synonymous with research works that are carried out on the
intended business and it involves collecting and analysing information
about the market, including the customers and competitors.
This, he adds is important to prepare
them for changing market demand and conditions coupled with preventing
their businesses from being left behind by the competition.
Have a financial plan
According to a business consultant, Nina
Nixon, the financial demand of a business is calculated after the
business owner has finished conducting the market research, described
the products, services and marketing strategy; and set the
organisation’s operating principles in place.
She says any other items that pertain to
the business as an expense should be defined before setting out to
create the business’ financial plan. Nixon notes that the goal is for
the entrepreneur to be able to run the business on a predefined budget,
so that there are no hidden or undefined costs that may threaten the
business operations over a certain period of time.
In doing this, she says an estimate of
the start-up costs for new businesses is required, which should include
the cost of the equipment to run the business,
She advises start-ups to figure out their
balances per month and calculate this for a year while existing
businesses should gather up their balance sheets for the last three
years.
She added that the cash flow statement,
which shows the amount of money expected to come into and go out of the
business in a given time, coupled with the tax payment should be
envisaged.
Start small
When businesses start small and stay
close to their customers, experts say it makes it easier to make smart
changes along the way and build the business gradually. According to
them, with time, the business owner can expand by setting up branches
regionally, nationally and globally.
Doing this, they say will allow the entrepreneur to learn business management along the way.
Choose your team wisely
Caution must be taken when selecting
people to work it, experts say. This, according to them is because not
everyone can share in the dream and vision of the business.
They add that people who are able to
complement the weakness of the business manager, who share a similar
vision as regards the venture, and are easy to work with and should be
selected.
They advise that mangers should ensure
that their team cares about the venture and buys into the purpose as
much as they do. According to experts, when interviewing people, an
entrepreneur should do some reading on how to identify real talent
beyond the certificates as innate talents, are different from
educational achievements and can be more useful.
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