Identifying business ideas

HOW TO IDENTIFY BUSINESS IDEAS - Marius Brandow.

The best time to start a business is NOW! Opportunity knocks during any economic cycle. It’s obvious that you must have the right business idea before starting a business. Always remember that a product or service MUST satisfy a need!

7 Steps to take in identifying new business ideas:

Step 1: Take stock of yourself. Statistics prove that new businesses have a much better chance of success if the person starting the business has skills and experience in that industry. It’s also very important that the potential business suits the owner.
A great way of taking stock of yourself is to write your CV:
List your education, training and experience as you would in a normal CV, and also include your interests, hobbies and passions and any other special skills and talents you might have. Now analyse your CV and compile your personal SWOT analysis.

Step 2: Keep track of local, national and international events, news and trends. The Soccer world cup will be hosted in SA in 2010 and opens up a multitude of opportunities. There are many other events and trends that create opportunities, just like the current credit crunch did for debt counsellors.
A great way to keep track of events, news and trends is to follow the news and new legislation. The best way to develop your business ideas is to read great entrepreneur development publications such as the Your Business magazine.
Looking at your personal skills and experience then combining that with what’s happening in the world, you will be able to identify a trend or event that you can capitalise on.

Step 3: Inventions, patents and copyright. It’s obvious that if you can make a lot of money with a patented invention which is properly protected. It’s also common knowledge that owners of copyrighted material or software can make a lot of money from it – isn’t that right, Mr Mark Shuttleworth?
People often forget the thousands of archived patents and inventions that are not being taken to the market. These un-used inventions are just waiting for someone to exploit them. Maybe you don’t have the ability to invent something but you might know how to market and sell it profitably. This can benefit you and the inventor; who might lack your business skill.

Step 4: Look at adding value. This means taking a raw product and putting it thru a process that’s changes it and adds value to it, then selling it for a worthwhile profit.
A typical example would be someone who buys fruit and vegetables in bulk and then repack it into smaller packs to sell in convenient sizes. The fruit and vegetables can also be chopped and peeled, adding even more value to it.

Step 5: Investigate other markets. A popular product or service that are in abundance and inexpensive in one area, might also be popular and profitable in another area. You can make money by taking these products or services from one area to another.

Step 6: Improve current products or services. You often say: “I can do that much better!” There is huge opportunity in improving a popular product or service and marketing it properly.

Step 7: Getting on the bandwagon. A sudden increase in demand for a particular product or service creates opportunity. It’s like the current need for debt counselling, or the demand for generators during the ESCOM electricity crisis of 2008.

List as many business ideas you can. Write them down as quickly as possible including the big, small, silly, unviable, unachievable or unrealistic ideas. Apply your creativity and write down at least 5 business ideas. Stick the list up where you can see it often.

THERE ARE OPPORTUNITIES EVERYWHERE!

The next step is to do something about it.
Entrepreneurs understand what it means to take calculated risk. Before you take the risk, you have to calculate it by determining the viability of the idea and by planning how to get the new venture off the ground. A viability study includes speaking to people who are currently in the industry as well as potential customers. Planning how to get the new venture off the ground includes writing clear, detailed goals and plans. Use your creative, innovative and hard working nature and take that calculated risk.

Extreme business success

As part of our promise to deliver something unique from the angle of the Chamber of commerce we will be looking at business opportunities where any amount of investors can invest in and make a good monthly return on their investment. We are at present investigating such an opportunity and will shortly offer the shareholding to interested parties.

Certain principles will be locked into the deal :

Ideally the shareholders will not be directors. The directors will report
to the board on a monthly basis and will be able to retain their positions
as directors only if they attain the agreed targets over an agreed period of time.

The directors will appoint management who ideally would consist
of a sales manager and Admin/financial manager.
The idea is that we outsource this function and Sales manager
will in turn only be paid should he attain the agreed targets.

These managers will in turn report to the board of directors on a weekly basis

To sum this all up the ideal structure for extreme business success would look something like this:

Investors with up to 100% shareholding

( board reports to shareholders on a monthly basis)


Board of directors
consisting of suitably qualified entrepreneurs

The board is set up with the specific purpose of investigating a business opportunity , drafting a business plan with cash flow projections and then involve investors in sourcing the funds to start the business. The minimum return on investment is 15% per annum (paid out as interest monthly)

Management : Ideally structured only two managers : admin manager
who also performs the duties of financial manager
(remunerated on a Salary basis )
and a Sales manager ( Remunerated on a commission basis)


General staff as required : Sales persons - remunerated on a commission basis
Admin and reception - remunerated on a salary basis

Some basic principles :
1. Because the share holders are not directors, there is accountability
from the board to the shareholders.
2. Because reporting is done on a daily basis from sales staff to sales manager
on a weekly basis from the sales manager to the board and on a monthly
basis from the board to the shareholders any possible deviation in targets
can practically immediately be rectified.

Centurion Entrepreneurs

January 2010 : The birth of Centurion Entrepreneurs

During January 2010 we will launch the newly created
Centurion Entrepreneurs , a Chamber of commerce for the
greater Southern area of Tshwane called Centurion.
Our aim is to create value for our members far beyond what
entrepreneurs came to expect from Chambers of commerce
Amongst others we will :
1. Arrange action packed network functions. The purpose
is for members to get to know each other and actually do business with each other
2. We are planning a Business opportunities show for the region.
If you ever thought that your business might be franchise-able ,
license-able or is for sale this is the opportunity to advertise it.
3. We are negotiating with adertising mediums for special rates
for group advertising.
4. Special pricing for all sorts of entrepreneurial training will be
available
5. Members will be kept up to date with relevant legislation,
amongst others the impact of the new companies act , King 3 ,
the consumer affairs act and a lot more.
6 Utilizing this blog page we will in the mean time give you
samples of what you can expect when the Chamber kicks off.
7. Special e-books and marketing tips will be available free to
members on the website being created.
8 The chamber will be associated with Sacci (South African
chamber of commerce and Industries) and the
Afrikaanse Handels instituut (AHI)
9. Much more to follow - Just keep on having a look at this
blog in the meantime !

John and Marius Brandow