Turning your ideas into profitable ventures

July 31, 2014 by Ife Adedapo 0 Comments

   

 

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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.