Business Ideas and Business Models
In this week’s lesson, I learned having a concrete business idea in mind, can help you to evaluate possible business model options with greater clarity and purpose. To find a business idea that is workable for you, it is important to evaluate your strengths and weaknesses. For example, you should list your talents, experiences, and skills as well as your deficits. This can help you to evaluate business ideas realistically. It can also help you to find solutions to make up for something you are lacking. The team members in the case study were not skilled in computer programming, but they were able to find a solution to this by taking advantage of an online service that assists you in creating a Web site.
It is also important to consider your interests. It can be very helpful to base your business on something that you enjoy, since you will be spending a great deal of time with it. Additionally, you should consider how your product or service would be of value to your customers. Will they feel spending money on your offering will provide them with a worthwhile benefit? If not, you will need to re-consider your idea to figure out how you can provide value for your customers. (Value proposition) How can you use your God-given talents in a way that brings you joy, while at the same time provides a useful service to others? Business is not just about making money; it is also about making a difference.
Demand and Competition
I was unaware of the great resource that Google Ad Words provides. Doing an analysis was very informative. It helped to show trends and interest in particular products. For example, the analysis showed that the demand for chess was relatively high, while the competition was relatively low. This shows that there is room for growth in this market. A detailed analysis could also be used to find specific areas within a particular market that have greater potential as a business idea. I noticed that even in a highly competitive/ high demand market, some areas were less competitive. If you could spot an area that had high demand with lower competition, you may be able to find a gap in service where you could find your niche.
In the discussion board, I learned many other valuable lessons. Tyler mentioned that you would need to be careful entering a highly saturated market because you could be left with expensive unsold merchandise. James mentioned that some products are very seasonal or cater to a specific geographical area or are a niche product. The cost of getting started in a particular sport, such as snowboarding, can be prohibitive, which reduces your market reach. As I read and responded to others posts, I was able to see the benefits and the difficulties of working in a team. If you are part of a team, you are going to have to be a team player. You cannot demand that others see things your way. If you feel strongly about a point of view, you should present your argument maturely and explain your position. You need to be willing to listen to and understand the concerns of your team.