This document provides guidance on developing business ideas. It emphasizes that having a good idea is not the same as having a business plan. To evaluate an idea's business potential, one should analyze its concept, requirements for delivery, needed team, market size and opportunity, competitive advantages, business model, competition, risks, funding needs, and potential exit. Participants are instructed to identify a problem, consider ideas to address it, and make a business case evaluating an idea against these factors. Developing business ideas requires analyzing feasibility, requirements, and risks rather than just having a solution concept.

1. Converting ideas into
businesses
Prajakt Raut
Co-founder - Applyifi
Founder – The Hub for Startups

2. Idea
Implementation

3. Can solve a
problem
Fulfill a need
Improve quality
of life
Improve
something

4. Examples of cheaper:
Lower price 0r accessible to more people e.g .EMI?
Cheaper
Faster
Better
Fuller
Nicer
Nearer
Improve
something

5. Product
Service
Value
Business model
New users
New uses

6. Having a
good idea is
not the same
as having a
business
plan.

7. A coffee
shop for
teens is a
cool idea…
…but is not the same as
Setting up a chain of coffee
shops.

8. A coffee chain requires
• Real estate/franchising
• Brand identity
• Pricing strategy
• Marketing
• Supply chain
• HR, legal, finance
• Training
• MIS
• Fund flow/cash flow
• ROI & capacity
utilization analysis
• Facilities management
• Processes
• Standardization
• Org structure
• Vendors
Etc. etc., etc….

9. How much of each of these
elements depends on
whether you want to have…
A lifestyle
business OR
A scale
business

10. Objective of
today’s session
To make a business case
around a good idea.

11. Fall in love with a PROBLEM.
Don’t get infatuated with a solution.
[Allows you to try new solutions if one does not work]

12. To have one great idea, have
many of them.
Thomas Edison

13. An idea means nothing.
Implementation is everything.

14. Plans are useless.
Planning is priceless.
Plans change. Planning allows you to adjust your
plans in implementing your idea.
Your idea or venture should not fail because your plan
failed. Rework your plan. Adjust your solution.

15. Exercise 1
Identify the problem or need that
you want to own
Present it as:
1. The situation/environment [e.g. accommodation choices in
Gurgaon are either too expensive or too basic & dirty]
2. The problem you want to address [e.g. “We want to
address the problem of finding smart, cheerful accommodation
at reasonable prices]

16. Exercise 2
State the ideas that address the
problem that you chose
Present all the ideas you considered and explain why
you discarded some.

17. Evaluating
the business
potential of
an idea
1) Concept
2) What will it take to deliver?
3) Team required for this
4) What is the size of the
opportunity
5) Defensible competitive
advantage?
6) Business model / financial
model
7) Competitive landscape
8) Risk factors
9) Funds required and use of
funds

18. Concept
• No more than one short, unambiguous
paragraph
– Reader should not need to read it again
to understand
– Capture the essence in a one crisp line
– Use simple language
– Sell the potential

19. What does it take to deliver?
Brand
Strategy
Value proposition &
positioning
Target Audience
Pricing
Brand Personality
Product
Procurement
Production
Supply chain
Vendor management
Capacity utilization
Portal
Technology Platform
Look & Feel – user experience
Ordering mechanisms – including
‘order on phone’
Payment gateways & methods
Logistics
Delivery & fulfillment
mechanisms
Warehousing
Logistics partners
Order Management
Marketing
Marketing strategy as well as tactical
ideas
Media Plan & Budgets
CRM Strategies & Ideas including
loyalty programs, referrals, etc.
Team
Roles & Responsibilities identification
HR policies
Team hiring & retention plan
E-commerce

20. How many vendors are involved?
19 Partners / Vendors involved in the implementation process
Technology & portal
development partners
1. E-commerce capable
Technology partners
2. Hosting partner
3. User Interface partner
4. Payment Gateway
5. Testing & bug fixing
experts
Operations partners
1. Packaging & printing partners
2. Logistics partners
3. Recruitment consultants
4. CRM partners/CRM platform
vendors
5. Database vendors
6. Process Training Consultants
7. Soft Skill Training Consultants
8. Outsourced Call Centre
Marketing & Brand
Communication partners
1. Brand identity specialists
2. Photographer
3. Direct Marketing agency
4. Social Media Agency
5. Advertising Agency
6. Media Buying agency

21. Team required to deliver
• “VCs prefer A-Class teams with mediocre
business plans over B-Class teams with
great business plans”
• Diversity of skills, domain expertise
critical but with similarity of passion
• Ideally, find partners with similar
aspirations, motivations and financial
situations

22. Size of the opportunity
• Break it down to last detail
– Total market size
– Addressable market size
• What price point and how does that
translate into revenue
• Test the assumptions

23. Defensible competitive
advantage?
• Uniqueness
• Scalability
• IP
• Replicability

24. Business model / financial
model
• Three key questions
– How much will you sell at
– How many will you sell
– Where will you sell… and how
• Who will pay for it – [user and buyer
could be different]
• Translate the above questions into a
financial model

25. Competition
• Who will you compete with?
• Why would someone choose you over
them?
• Why do you have a chance to be a
dominant player?
In many cases, status quo [i.e. doing
nothing] is the biggest competition

26. Risk factors
• Market risks?
• Financial risks?
• Competitive risks?
• Business model risks?
• Execution risks?

27. Funding needs
• What do you need the money for? – Be
specific
• How much do you need? – Be
definitive

28. Exit potential
• How is the investor going to earn a good
return?
Sale to a strategic investor
Exit by selling stake to a growth stage investor
IPO?
[Note: Exit does not mean that the
entrepreneurs has toExit]

29. Exercise 3
Make a business case for your idea

30. Evaluating
the business
potential of
an idea
1) Concept
2) What will it take to deliver?
3) Team required for this
4) What is the size of the
opportunity
5) Defensible competitive
advantage?
6) Business model / financial
model
7) Competitive landscape
8) Risk factors
9) Funds required and use of
funds

31. Sleep over your ideas.
More often than not you will
get over them.
Dream big. Dream often.