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Monday, August 30, 2010

Where Does It Begin?

Business Concept

Many of you may have thought about starting a business at some point in time. Many of us have thought about a new invention, process or production improvement that we may be able to patent and call our own. Yes, that Business Concept begins with an idea! It arises out of a need of consumers that is not currently being met or satisfied. Just think of the recent immigrant who cannot find the ingredients for his home cooking, or the large size woman who cannot find styles appropriate for her size and occupation.
Feasibility or Validation
The entrepreneur will look "outside the box" and find a product that will be the answer to unmet needs. But before we can expect to make some money on our idea and build a business there are some things that we must investigate before we venture out and spend our own money and the money of others in order to start a business. Yes, you guessed it, you must do Market Research, and you must search and search for trends, the competition and even your customers. Therefore, a business concept must meet four requirements in order to be feasible:

  1. There must be a group of customers willing to purchase the product or product lines featured by the business at the price offered. (Target Market)
  2. The market must be large enough to support the business and generate a profit. (Feasibility Issue)
  3. The entrepreneur must be able to differentiate his or her product and business from that of the competition. (Competitive Advantage)
  4. The entrepreneur must be able to finance the business -- either personally or through funding sources. (Financial Attractiveness)

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