To be a successful entrepreneur and start a profitable business, it is not enough to have one great idea. There are dozens of challenges to overcome between concept creation and monetization, but this entire process can be summed up in the mission to meet a demand from a specific market niche.
The idea must be rounded off in a business plan
In this sense, the creation of a business plan is essential. That business plan It is the entrepreneur’s responsibility and no more than the detailed explanation of how to make money from your business. That’s the big challenge for newcomers: to clarify in detail how the idea can be profitable. For the founder and board member of Easy Taxi, Tallis Gomes, many entrepreneurs go looking for investors without having a concrete offer. «The big difficulty is that most of them don’t have a business, just an idea. Obviously, if the investor is presented with just an idea, they will not invest,” he warns. When creating your business plan, try to simplify it as much as possible so that you can explain it in a few minutes. Basically, you have to show that the money that comes in will be greater than the sum of its costs and expenses that generate it cost effectiveness. For example, they must disclose details such as supplier names and means of payment.
How an idea becomes a product
To that end, the first task is to find out why people would pay for your product or service. Appreciates the customer and warns that no one gives up money for nothing. exist three reasons Basics that lead a person to use:
This occurs when there are unresolved market issues and a to need unattended: the famous demand without supply. The aim here is to find solutions that no one else has found in your field. This will be the differentiator.
It is related to comfort and resource conservation. Is about Save time and effort to the customer, simplify life. In the case of Easy Taxi, the great solution was to significantly reduce the waiting time for the taxi users and make the process more agile for the passenger and the driver of the vehicle. There are several cases of efficiency: the ideal is always to look for the best value for money.
It is a subjective value, but also present in our society. Some pay to feel represented, either as part of a social group or to convey a message related to the product. Selling a product for status is usually a more complex and arduous process. If you don’t have exactly one product or service, you can find other ways to monetize your offering. This is the case, for example, with many companies that work with the Internet. Some alternatives include advertising (selling ads), signing (for accessing content), and sales (for business-related products).
However, you should not lose sight of the monetary aspect when starting a business. The difficulty of figuring out how to turn a good idea into a profitable business is one of the reasons that lead to the premature failure of companies that had potential but didn’t know how to translate it into the language of the market.
Be prepared for difficulties and don’t be intimidated by possible mistakes. Keep in mind that finding support can be difficult at first. «I searched for investors for six months until I decided not to look any further. I learned that when you have a good deal, the investor comes to you¨ recalls Tallis Gomes, whose company now operates in 33 countries.