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You have a business idea and you are about to start your own business. Apply what you
have learnt in the entrepreneurship course to turn your idea into business.

Having a business idea already and to start a business, we have to look the opportunity of the
market. An opportunity is a favourable set of circumstance that creates a need for product,
service or business. There is three way to identify opportunities; observing trends, solving a
problem and finding gap in the market. Observing trend include social trends, economic
trends, and technological trends, political and regulatory changes.

After that we have to do feasibility analysis; the process of determining if a business idea is
viable. Feasibility analysis has 4 part 1. Product or service feasibility 2. Industry or target
market feasibility 3. Organizational feasibility 4.Financial feasibility. To analyze
product/service feasibility, we have to ask following questions

(i)Does it make sense? Is it reasonable? Is it something real customer will buy?

(ii)Does it take advantages of an environmental trend, solve problem, or fill a gap in the
market place?

(iii)Is that a good time to introduce the product or service to the market?

(iv)Are there any fatal flaws in the product or service’s basic design or concept?

Industry/ Target market feasibility have to see industry attractiveness and target market
attractiveness. Organizational feasibility include to analyze management prowess and
resource sufficiency. Financial feasibility analysis include total start-up cash needed,
financial performance of similar business and overall financial attractiveness of the proposed
venture.

After we finish analyzation, before we entering the market we have to do the important thing
that is the business model. In business model that has to include plan for how it creates,
delivers, and captures value for stakeholders. We will use Barringer/Ireland business model
template for business model. There is four parts core strategy, resources, financial and
operations.

Core Strategy is the first component of the business model is core strategy. A core strategy
describes how the firm plans to compete relative to its competitors. The primary elements of
core strategy are 1.Business Mission 2.Basis of Differentiation 3.Target Market
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4.Product/Market Scope. Business Mission statement describes why it exists and what its
business model is supposed to accomplish.

Basis of Differentiation is important that a business clearly articulate the points that
differentiate its product or service from competitors. A company’s basis of differentiation is
what causes consumers to pick one company’s products over another’s and what solves a
problem or satisfies a customer need. It is best to limit a company’s basis of differentiation to
two to three key points. Target Market is the identification of the target market in which the
firm will compete is extremely important. A target market is a place within a larger market
segment that represents a narrow group of customers with similar interests. A firm’s target
market should be made explicit in the business model template. Resources is the second
component of a business model is resources.

Resources are the inputs a firm uses to produce, sell, distribute, and service a product or
service. A firm’s most important resources, both tangible and intangible, must be both
difficult to imitate and hard to find a substitute for. Resources has two parts core competency
and key assets. A core competency is a specific factor or capability that supports a firm’s
business model and sets it apart from rivals. A core competency can take on various forms,
such as technical know-how, an efficient process, a trusting relationship with customers,
expertise in product design, and so forth. Key assets are the assets that a firm owns that
enable its business model to work. The assets can be physical, financial, intellectual, or
human.

Financials is the third component of a firm’s business model focuses on its financials. This is
the only section of a firm’s business model that describes how it earns money. There is three
parts in financial: revenue stream, cost structure and financing or funding. A firm’s revenue
streams describe the ways in which it makes money. Some businesses have a single revenue
stream while others have several. A business’s cost structure describes the most important
costs incurred to support its business model. It costs money to establish a basis of
differentiation, develop core competencies, acquire and develop key assets, and so forth. In
financing/funding, many business models rely on a certain amount of financing or funding to
bring their business model to life. At the business model stage projections do not need to be
completed to determine the exact amount of money that is needed. An approximation is
sufficient. There are three categories of costs to consider: 1. Capital costs. 2. One-time
expenses, such as building a Web site and training initial employees. 3. Provisions for ramp-
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up expenses (most businesses incur costs before they earn revenues). Operations is the final
quadrant in a firm’s business model focuses on operations. Operations are both integral to a
firm’s overall business model and represent the day-to-day heartbeat of a firm. Operation has
three parts product or service production, channels and key partners. Product (or Service)
Production section focuses on how a firm’s products and/or services are produced. This
decision has a major impact on all aspects of a firm’s business model. If a firm is producing a
service rather than a physical product, a brief description of how the service will be produced
should be provided. Channels: a company’s channels describe how it delivers its product or
service to its customers. Businesses either sell direct, through intermediaries (such as
distributors and wholesalers), or via a combination of both. Some firms employ a sales force
that calls on potential customers to try to close sales. This is an expensive strategy but
necessary in some instances. The final element of a firm’s business model is key partners.
Start-ups, in particular, typically do not have sufficient resources (or funding) to perform all
the tasks necessary to make their business models work, so they rely on key partners to
perform important roles.
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After making and complete the business model, before we entering the market we have to do
industry and competitor analysis. This is important because entering the industries without
understand industry or industries they plan to enter and in which they intend to compete is
like leading an army into the unfamiliar face of the country. When studying an industry, an
entrepreneur must answer 3 questions. 1. Assessable: Is the industry accessible? / Is it
realistic place for a new venture to enter? 2. Ripe: Does the industry contain markets that are
ripe for innovation or are underserved? 3. Positions: Are there positions in the industry that
will avoid some of the negative attributes of the industry as a whole? To analyze industry,
there is three portions: trends, structure and types. Industrial trends include environmental
trends (economic trend, social trend, technological advances, political and regulatory) and

business trends. There is the five forces models called Porter’s five forces to understand the
industrial structure. These are – 1.Threat of substitutes 2.Threat of new entrance 3.Rivalry
among existing firms 4.Bargaining Power of suppliers 5.Bargaining Power of buyers. Five
types of industries to know are 1. Emerging industry 2. Mature industry 3. Declining Industry
4. Fragmented Industry 5. Global Industry.
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To identify competitor, there are three types of competitor 1. Direct competitors 2. Indirect
competitors 3. Future competitors. We can complete competitor analysis by sources of
competitive intelligence and completing a competitive analysis grid. Sources of competitive
intelligence include attending conferences and trade shows, purchasing competitors’ product,
study competitors’ website and social media pages, setting up googles emails alerts, reading
industry-related books, magazines, website and blogs and talking to customers about what
motivated to buy your products as also competitor products. Example for completing a
competitive analysis grid is as follow.

This is what I learn in entreprenuership the important requirement to start the business when we have
a business idea.