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© 2012 CAPBuilder Network Group All rights reserved
KEY STEPS TO
DEVELOP AND
EVALUATE
YOUR BUSINESS
IDEA
© 2012 CAPBuilder Network Group All rights reserved
Marc Parham, Radio Show Host, MC/Speaker, Infopreneur
2
© 2012 CAPBuilder Network Group All rights reserved
TOPICS IN THE WEBINAR
1. How do you come up with a
business idea.
2. Product or service, what is the
difference.
3. Ways to come up with a great idea.
4. Research, research, research
5. Putting it all together.
6. 8 steps to evaluate that GREAT idea.
© 2012 CAPBuilder Network Group All rights reserved
© 2012 CAPBuilder Network Group All rights reserved
Think about what goods or services would
improve your life
 Keep a list of your personal strengths and
weaknesses in mind.
 Does anything come to mind that would
improve your life?
 Spend some time considering your own
experiences.
 You can identify several products or services
that would help you.
© 2012 CAPBuilder Network Group All rights reserved
Identify a problem with the existing
industry
 Frequently, businesses or inventions
began because someone was frustrated
with the current way of doing things.
 A good way to come up with a business
idea is to look for these problems.
 If you're feeling frustrated about
something, it is possible that others feel
the same way, which gives you a
potential market.
© 2012 CAPBuilder Network Group All rights reserved
Build upon an existing business idea
Rather than a problem with the current
industry, you might notice something
that a business does well.
Take that and see if you can improve
upon it.
By taking ideas one step further than
the current industry does, you can
carve a good niche for yourself in the
market.
© 2012 CAPBuilder Network Group All rights reserved
Look towards the future
 Successful entrepreneurs are
innovators.
 They don't stick with old methods or
technologies, but rather look ahead
and see what will be successful in the
future.
 You can do this by asking yourself
what the next logical step is for a
product or service.
© 2012 CAPBuilder Network Group All rights reserved
Apply your skills to a different field
 Another way to come up with a new product
or service is to use skills you've acquired
elsewhere.
 Often times, you can creatively apply skills
learned elsewhere to improve a completely
different field.
 When considering your business ideas,
take all of your skills into account. You may
have a certain talent that will revolutionize a
different field
© 2012 CAPBuilder Network Group All rights reserved
© 2012 CAPBuilder Network Group All rights reserved
Decide whether you'd like to provide
a product or a service
 A new business idea will likely either
be based around a product or a
service.
 Each requires some thought and
creativity.
 They both have advantages and
challenges that you should consider
before focusing on one or the other.
© 2012 CAPBuilder Network Group All rights reserved
Product or Service
 Product
 For a new product, you'll have to develop a good
or improve upon an existing one, then invest in
manufacturing to produce it.
 This is an expense, but a successful product can
be very lucrative.
 Service
 Providing a service will eliminate the need for
developing and manufacturing a new product.
 However, you'll probably have to hire more
people, since it will be tough to grow your
business if you're the only one providing a
service.
© 2012 CAPBuilder Network Group All rights reserved
Market Research
© 2012 CAPBuilder Network Group All rights reserved
Conduct preliminary consumer
research
While market research is
usually only used after you
have an idea, you can do some
early research to discover what
people value.
This can help you come up with
an idea based on people's
wants and needs.
© 2012 CAPBuilder Network Group All rights reserved
Conduct preliminary consumer research
Investigate the internet and see
what common keywords or
internet searches are.
This will show you what people
search for most often, which
can spark and idea for you.
© 2012 CAPBuilder Network Group All rights reserved
© 2012 CAPBuilder Network Group All rights reserved
Write down all your ideas
 Every idea, no matter how small or how
seemingly pointless, could have value.
 Get into the habit of writing down every
idea you have in a notebook.
 Carry this with you at all times, because
you never know when inspiration could
strike.
 This way all your ideas can be kept in
one convenient place.
© 2012 CAPBuilder Network Group All rights reserved
Foster your creativity
 Don't be too critical of your ideas at this
stage.
 During this brainstorming period, you
shouldn't feel constrained.
 Instead, free your mind and see what you
come up with.
 There are several ways you can stimulate
your creativity and help come up with ideas.
© 2012 CAPBuilder Network Group All rights reserved
© 2012 CAPBuilder Network Group All rights reserved
Overview
 Capture your business model in a portable 1-
page diagram.
 Only develop one idea at a time
 Use a different sheet for each idea
 There are no wrong answers
 This is just a first pass at developing your idea
 You may come back and do it again
 And again
© 2012 CAPBuilder Network Group All rights reserved
1-The Problem
What are the problems that
your business is going to
solve?
Are these REAL problems or
have you used your product
to create the problem?
© 2012 CAPBuilder Network Group All rights reserved
2-The Customer
Who are the people
that have the problem?
How large is the
problem for them?
How bad do they need
the problem solved?
© 2012 CAPBuilder Network Group All rights reserved
3-The Solution (Your Products)
 What products or services will your
business provide to solve the
problem?
 Sketch out the top features or
capabilities next to each problem.
• Bind a solution to your problem
 PROBLEM:
 SOLUTION:
© 2012 CAPBuilder Network Group All rights reserved
4-Unique Selling Proposition
Why buy from you?
 What makes you and your product unique.
 Be different, but make sure your difference
matters
 Focus on finished story benefits
 A good USP gets inside the head of
your customers and focusses on the
benefits your customers derive after
using your product.
© 2012 CAPBuilder Network Group All rights reserved
5-Marketing
 How are you going to reach and sell your
products to your customers.
 Inbound versus Outbound
 Inbound channels use “pull messaging” to
let customers find you organically while
outbound channels rely on “push
messaging” for reaching customers.
 Example inbound channels: Blogs, SEO,
E-books, white papers, webinars.
 Example outbound channels: SEM,
print/TV ads, trade shows, cold calling.
© 2012 CAPBuilder Network Group All rights reserved
6-The Cost
What are the cost
to make and deliver
1 unit of your
product?
Labor -
Materials -
Total -
© 2012 CAPBuilder Network Group All rights reserved
7-The Price
What are you going to charge for
1 unit of your product?
Price -
Cost -
Net -
© 2012 CAPBuilder Network Group All rights reserved
8-The Revenue Projections
 What will be the gross revenue target per
month
 Qty Per Wk =
 Qty Per Wk X 4 Wks = Monthly Qty
 Monthly Qty X Price = Gross Monthly Rev
© 2012 CAPBuilder Network Group All rights reserved
Questions To Ask
 Does your idea SOLVE a PROBLEM?
 How BIG is the PROBLEM for your
CUSTOMERS?
 How will you REACH your CUSTOMERS?
 WHY will they BUY FROM YOU (USP)?
 Is it WORTH YOUR TIME?
 IS THIS STILL A GREAT IDEA?
© 2012 CAPBuilder Network Group All rights reserved
SUMMARY
 Keep a list of your personal strengths and weaknesses in mind.
 Successful entrepreneurs are innovators.
 A new business idea will likely either be based around a product
or a service.
 What are the problems that your business is going to solve?
 Why buy from you?
 How will you reach your customer?
 How will your business make money?
 Marc Parham
 marcp@capbuildernetwork.com
 www.capbuildernetwork.com
 Text: GETCOACHED TO 22828
 For my books search Amazon.com
for Marc Parham
 Kevin R. McGee
 Kevin@ avidentrepreneurship.com
 www.avidentrepreneurship.com
 For my books search Amazon.com for
Kevin McGee
FOR MORE INFORMATION
33

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Developing your business idea

  • 1. © 2012 CAPBuilder Network Group All rights reserved KEY STEPS TO DEVELOP AND EVALUATE YOUR BUSINESS IDEA
  • 2. © 2012 CAPBuilder Network Group All rights reserved Marc Parham, Radio Show Host, MC/Speaker, Infopreneur 2
  • 3. © 2012 CAPBuilder Network Group All rights reserved TOPICS IN THE WEBINAR 1. How do you come up with a business idea. 2. Product or service, what is the difference. 3. Ways to come up with a great idea. 4. Research, research, research 5. Putting it all together. 6. 8 steps to evaluate that GREAT idea.
  • 4. © 2012 CAPBuilder Network Group All rights reserved
  • 5. © 2012 CAPBuilder Network Group All rights reserved Think about what goods or services would improve your life  Keep a list of your personal strengths and weaknesses in mind.  Does anything come to mind that would improve your life?  Spend some time considering your own experiences.  You can identify several products or services that would help you.
  • 6. © 2012 CAPBuilder Network Group All rights reserved Identify a problem with the existing industry  Frequently, businesses or inventions began because someone was frustrated with the current way of doing things.  A good way to come up with a business idea is to look for these problems.  If you're feeling frustrated about something, it is possible that others feel the same way, which gives you a potential market.
  • 7. © 2012 CAPBuilder Network Group All rights reserved Build upon an existing business idea Rather than a problem with the current industry, you might notice something that a business does well. Take that and see if you can improve upon it. By taking ideas one step further than the current industry does, you can carve a good niche for yourself in the market.
  • 8. © 2012 CAPBuilder Network Group All rights reserved Look towards the future  Successful entrepreneurs are innovators.  They don't stick with old methods or technologies, but rather look ahead and see what will be successful in the future.  You can do this by asking yourself what the next logical step is for a product or service.
  • 9. © 2012 CAPBuilder Network Group All rights reserved Apply your skills to a different field  Another way to come up with a new product or service is to use skills you've acquired elsewhere.  Often times, you can creatively apply skills learned elsewhere to improve a completely different field.  When considering your business ideas, take all of your skills into account. You may have a certain talent that will revolutionize a different field
  • 10. © 2012 CAPBuilder Network Group All rights reserved
  • 11. © 2012 CAPBuilder Network Group All rights reserved Decide whether you'd like to provide a product or a service  A new business idea will likely either be based around a product or a service.  Each requires some thought and creativity.  They both have advantages and challenges that you should consider before focusing on one or the other.
  • 12. © 2012 CAPBuilder Network Group All rights reserved Product or Service  Product  For a new product, you'll have to develop a good or improve upon an existing one, then invest in manufacturing to produce it.  This is an expense, but a successful product can be very lucrative.  Service  Providing a service will eliminate the need for developing and manufacturing a new product.  However, you'll probably have to hire more people, since it will be tough to grow your business if you're the only one providing a service.
  • 13. © 2012 CAPBuilder Network Group All rights reserved Market Research
  • 14. © 2012 CAPBuilder Network Group All rights reserved Conduct preliminary consumer research While market research is usually only used after you have an idea, you can do some early research to discover what people value. This can help you come up with an idea based on people's wants and needs.
  • 15. © 2012 CAPBuilder Network Group All rights reserved Conduct preliminary consumer research Investigate the internet and see what common keywords or internet searches are. This will show you what people search for most often, which can spark and idea for you.
  • 16. © 2012 CAPBuilder Network Group All rights reserved
  • 17. © 2012 CAPBuilder Network Group All rights reserved Write down all your ideas  Every idea, no matter how small or how seemingly pointless, could have value.  Get into the habit of writing down every idea you have in a notebook.  Carry this with you at all times, because you never know when inspiration could strike.  This way all your ideas can be kept in one convenient place.
  • 18. © 2012 CAPBuilder Network Group All rights reserved Foster your creativity  Don't be too critical of your ideas at this stage.  During this brainstorming period, you shouldn't feel constrained.  Instead, free your mind and see what you come up with.  There are several ways you can stimulate your creativity and help come up with ideas.
  • 19. © 2012 CAPBuilder Network Group All rights reserved
  • 20.
  • 21. © 2012 CAPBuilder Network Group All rights reserved Overview  Capture your business model in a portable 1- page diagram.  Only develop one idea at a time  Use a different sheet for each idea  There are no wrong answers  This is just a first pass at developing your idea  You may come back and do it again  And again
  • 22. © 2012 CAPBuilder Network Group All rights reserved 1-The Problem What are the problems that your business is going to solve? Are these REAL problems or have you used your product to create the problem?
  • 23. © 2012 CAPBuilder Network Group All rights reserved 2-The Customer Who are the people that have the problem? How large is the problem for them? How bad do they need the problem solved?
  • 24. © 2012 CAPBuilder Network Group All rights reserved 3-The Solution (Your Products)  What products or services will your business provide to solve the problem?  Sketch out the top features or capabilities next to each problem. • Bind a solution to your problem  PROBLEM:  SOLUTION:
  • 25. © 2012 CAPBuilder Network Group All rights reserved 4-Unique Selling Proposition Why buy from you?  What makes you and your product unique.  Be different, but make sure your difference matters  Focus on finished story benefits  A good USP gets inside the head of your customers and focusses on the benefits your customers derive after using your product.
  • 26. © 2012 CAPBuilder Network Group All rights reserved 5-Marketing  How are you going to reach and sell your products to your customers.  Inbound versus Outbound  Inbound channels use “pull messaging” to let customers find you organically while outbound channels rely on “push messaging” for reaching customers.  Example inbound channels: Blogs, SEO, E-books, white papers, webinars.  Example outbound channels: SEM, print/TV ads, trade shows, cold calling.
  • 27. © 2012 CAPBuilder Network Group All rights reserved 6-The Cost What are the cost to make and deliver 1 unit of your product? Labor - Materials - Total -
  • 28. © 2012 CAPBuilder Network Group All rights reserved 7-The Price What are you going to charge for 1 unit of your product? Price - Cost - Net -
  • 29. © 2012 CAPBuilder Network Group All rights reserved 8-The Revenue Projections  What will be the gross revenue target per month  Qty Per Wk =  Qty Per Wk X 4 Wks = Monthly Qty  Monthly Qty X Price = Gross Monthly Rev
  • 30. © 2012 CAPBuilder Network Group All rights reserved Questions To Ask  Does your idea SOLVE a PROBLEM?  How BIG is the PROBLEM for your CUSTOMERS?  How will you REACH your CUSTOMERS?  WHY will they BUY FROM YOU (USP)?  Is it WORTH YOUR TIME?  IS THIS STILL A GREAT IDEA?
  • 31. © 2012 CAPBuilder Network Group All rights reserved SUMMARY  Keep a list of your personal strengths and weaknesses in mind.  Successful entrepreneurs are innovators.  A new business idea will likely either be based around a product or a service.  What are the problems that your business is going to solve?  Why buy from you?  How will you reach your customer?  How will your business make money?
  • 32.  Marc Parham  marcp@capbuildernetwork.com  www.capbuildernetwork.com  Text: GETCOACHED TO 22828  For my books search Amazon.com for Marc Parham  Kevin R. McGee  Kevin@ avidentrepreneurship.com  www.avidentrepreneurship.com  For my books search Amazon.com for Kevin McGee FOR MORE INFORMATION
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