From a business idea to a successful business
Any business, regardless of market niche, type of product sold or development strategy, begins with an intangible source - a business idea. The catalyst for the design of a business idea is the understanding that its implementation can fundamentally change a person's life, make it more rich both emotionally and materially. However, often a business idea that has not had time to be born fades away. Its author does not even have time to understand whether it is good or not, because its investment attractiveness is not studied, market analysis is not conducted, not to mention drawing up a business plan and performing quantitative and qualitative marketing research. The reason for such mishandling of a business idea is most often a clear lack of resources necessary for its implementation. And it is not only material resources in the form of initial capital, but also a lack of knowledge to build a path to success. This knowledge creates the same fulcrum, which, according to the great Archimedes, can even turn the Earth upside down.
Inverra company: Your point of reference
The team of Inverra company will create such a point of support for you and help you find the lever thanks to which the business idea will move from an ideal to a practical plane and take on the real outlines of a successful enterprise. The guarantee of such a positive result of cooperation with Inverra company is the many years of experience of our analysts, who have developed hundreds of work projects in various areas of the economy. Many of these projects, which are embodied in concrete business plans, were initially just a vague business idea. Today, they are successfully developing, adhering to the developed marketing strategy and tactics, and periodically correcting the course based on updated data on the state of the market.
Market analysis: The first step to success
In order for a business idea to successfully turn into a profitable business, you should always remember that the created enterprise will not work in ideal conditions. The modern market environment is similar to the sea, in which, on the one hand, you can catch fish - make a profit, and on the other hand, you can drown or be eaten by predators - not able to withstand the competition. Throwing a fragile business idea into the market, without first investigating the situation, is short-sighted and can lead to a loss of funds. Therefore, conducting an analysis of the market where your product or service will be sold is the initial and most important stage in the process of deciding on the viability of a business idea.
Market analysis is a complex task that consists in identifying the key factors affecting the demand for a particular product in the past, present and future. Knowing these factors and being able to use them allows you to develop and implement an effective strategy for the development of a specific company or the implementation of a business idea. The effectiveness of investing significant financial and other resources often depends on the accuracy of the market analysis. Therefore, in this matter, it is better to seek help from experienced professionals, such as analysts of Inverra company. We already have more than one and a half thousand such marketing studies.
Structure of market analysis
The structure of the market analysis is determined each time based on the needs of the customer and may include the following sections:
General characteristics of the market. Analysis of its trends and main indicators.
State regulation of the industry. Taxes and fees in the market.
Production and dynamics of sales of products (goods and services).
The main operators of the market. Their description, segmentation and structuring. Shares of the main players.
Sales volumes on the market.
Foreign trade.
Price and pricing in the market.
Consumers and their preferences. Portrait of consumers in the B2B, B2C, B2G segment. Internet audience analysis.
Product sales channels. Description and structure of sales by channels.
The range of products presented on the market.
Conclusions. Forecast indicators and trends. Recommendations for market entry and development.
Investment attractiveness of the industry. SWOT and PEST analysis of the market and factors affecting it. Building a market risk map.
Analysis results
As a result of the market analysis, you will get an absolutely accurate idea of how your business idea will feel in real conditions, and what are its chances and ways for development.
With our help, you will learn much more about your future product and more fully present the mechanism of obtaining income from its sale. This includes:
Product/service.
Product/service. What products will you sell, their main characteristics.
Features of the product and its differences. The key benefit in relation to customer needs is how you can satisfy them better than your competitors.
Target customer. Who is the target customer: age, ability to pay, region of residence and other characteristics.
Sales and promotion channels. Which is intended to be used, how it is planned to influence the target audience.
Planning and organization
The business plan enables:
Complex planning and organization of business.
Assess the prospects and viability of a business idea and business project, based on the realities that have developed in the economy and in its specific industry.
Understand the potential profitability and profitability of the business.
Estimate the amount of necessary capital investments for the organization of the project, as well as the return on invested investments and the time required for their return.
Attract financing: an investor or bank lending and make the investment decision yourself.
Organizational and production department
When the goals and tasks for the implementation of the business idea are clarified, the sources of obtaining investment funds are determined and confirmed, the period of implementation of the organizational and production section of the business plan comes. It includes the following items:
Service technology/algorithm.
Premises required.
List of equipment, furniture, appliances, etc.
Raw material base.
Counterparts.
Personnel.
Permissive documentation.
Simply put, this section describes how investment funds allocated for a business idea will be transformed into completely tangible objects, collectively constituting the future system of obtaining income.
Network schedule of project organization
In order not to go astray from the right path of implementing a business idea, the network schedule of the project organization, which contains answers to the following questions, will help:
What steps will be required to start work?
How long does each one last?
How much money will we need in each specific time period?
What is the source of this money?
Who are the responsible persons?
What staff will we need at each stage?
When will your business start?
What is the planning horizon to consider after starting a company?
Sales and marketing
The effect of the business plan does not end even after the opening of the company and the start of sales, because a separate section of the document is dedicated to its maximum effectiveness. It defines:
How will you sell your products: wholesale or retail.
The price of goods in different working conditions with distributors and retail.
Seasonality factor and its impact on demand.
Using discounts and promotions to promote products.
The time required to win over the target audience.
Financial analysis
As a rule, the bearer of a business idea wants to implement it with maximum efficiency, so that it does not hurt for wasted funds and efforts. For this purpose, Inverra company analysts evaluate the project's profitability, profitability and investment attractiveness. At the same time, the following indicators are calculated:
Profitability indicators:
Sales
Gross profit
EBITDA
EBIT
Net Profit / loss
Profitability indicators:
Gross profit Margin
EBITDA Margin
Ordinary Income Margin
Return on sales
Indicators of investment attractiveness:
Discounted payback period
Net stated value
Internal rate of return
Profitability of investments
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