AGRI FISHERY PRE-FINAL LESSON

Steps in Selecting Business Idea

What are the various criteria and steps in selecting a business idea?

Before a business idea is arrived at, there are several steps and criteria used at
reaching a conclusion on the type of business to be started.

This article sheds light on these criteria and techniques in selecting a business
idea. The criteria and techniques that follow provide a better understanding of
the requirements needed for concluding the type of business to be engaged in.

Criteria for Selecting a Viable Business Idea

METHODS AND KEY CONCEPTS IN SELECTING

A BUSINESS OPPORTUNITY

Follow Your Passion

Passion is one of the most important criteria and techniques in choosing a
business idea.

Without passion, the business idea selected will not stand the test of time, as it
will certainly show during trying times for the business.

Going with your passion increases the chances of establishing a well-run business
which eliminates effort, but engenders love for the work, thereby increasing the
commitment level for the business.
This is the first consideration to be made when selecting a business idea. There
are a lot of niches with varying interest levels for entrepreneurs. Therefore,
gravitating towards your most preferred niche is an important criterion for
starting a successful business.

Following your passion is not enough, as it also requires carefully testing the idea
to ensure it is implementable/viable.

Choosing an Edge that is Difficult to Replicate

There are a lot of businesses that are well funded and have the capacity to be in
the game for a very long time too.

These businesses are the major players in different industries where they operate.

When selecting a business idea, it is necessary to take this into serious

consideration. Investing in businesses where your competitors have a large
financial chest may prove detrimental to your business.

Starting a business where there is lower competitiveness is advisable. Here, your

difficult-to-copy edge will place your business in the forefront of the pack, as it
will attract patronage which sets the business apart from its competition.

The Future of the Business

In selecting a business idea, it is imperative to consider the future of the
business. Many businesses function/operate in sectors where sustainability is low.
An example of this is the coal mining business.

With a growing awareness of the dangers of global warming caused mainly by

carbon fuels, developing a business idea in this direction will not be wise. This is
because the use of fossil fuels is increasingly discouraged.

This, therefore, casts a shadow on the sustainability of the business idea.

Through understanding of the Business Model
To build a sustainable and thriving business, having a good understanding of the
business model is important.

Hence, this criteria/technique is a necessary precondition of selecting a business

idea. There are too many businesses that go under (fail) due to this very problem
(lack of understanding of the business model).

Understanding is not enough, as it also requires implementable skills. Using this

criterion as a yardstick in selecting a business idea guides the business from
failing in its infancy.

Target a Large Market

This is one of the criteria and techniques in selecting a business idea. When
formulating the business idea, critical thought should be given to the market size
and the people/clients the business will serve.

Selecting a business idea with a limited client base will result in a business that
does not make a real impact on sales. Business ideas targeting larger markets
easily get access to funding/loans.

This is because investors or borrowers see the potential of the business growing
into a major player, thereby protecting their investments and interests.

An Easily Scalable Business Idea

Every business idea possesses features of easy scalability. Hence developing a
business idea any further, critical questions should be answered on the scalability
of the business idea.

Selecting a business idea that does not meet this criterion is risky and unhealthy
for the business. A restricted business eliminates the possibility of growth;
therefore, the business from the on-set has less likelihood for growth.
Examining Similar Business Ideas and How They Have
Fared
When selecting a business Idea, it will do well to search for other similar business
ideas that have been developed and examine how these ideas have fared.

What is the success rate? and the cause for the success, or failure of the selected
business idea.

This criteria/technique for selecting a business idea ensures that the mistakes
done in previous business ideas are not repeated, hence increasing the chances
for success. The same also applies to the success of the business idea.

Successes experienced with previous ideas are easily replicated.

Thorough Brainstorming
A brainstorming session is one criterion for selecting a sound business idea.
During the brainstorming session, the entire business idea is scrutinized for any
loopholes or areas needing improvements or modifications.

Most of the steps given above are subsumed under brainstorming.

Criteria and techniques in selecting a business idea have been covered in this
article, with the basic constituents of the criteria and techniques included.

With the information supplied, the entrepreneur is given reliable tips used in
selecting a business idea.

It also exposes the fact that developing a reliable business idea requires much
more than having an interest, as other very important criteria are used in the
process of selecting a business idea.
Criteria of a Viable Business Idea
What are the basic criteria for evaluating and screening business ideas? Starting a
business always begin with innovative ideas that entrepreneurs need to generate
to achieve business success. Have you been working hard and hard for years?

Oh, you are having difficulties in which ladder of business to climb?

BUSINESS SELECTION CRITERIA: EVALUATING STARTUP BUSINESS IDEAS

Well, you never can tell maybe you are almost getting to the bottom, or even got
near the apex top of the ladder. That doesn’t matter too much but the evaluation
criteria for good business ideas to be discussed will vividly shed more light on
which business ladder you are qualified to climb.

BEST TECHNIQUES IN SELECTING A BUSINESS IDEA

1. Check the Business Capital

There is no gainsaying the fact that to kick start any sort of business, be it online
or offline, the number one thing to look out for is the financial status and the
available capital to incur in the business.

This criteria is better by far inherently personal and it depends on the ambition
the entrepreneur is chasing after.

After carrying your feasibility studies on factors such as equipment to be

purchase, hauling, rendering of services or product delivering, advertisement and
HR etc, Check your pocket to determine if you have the capacity to dwell in such
business.

2. Feasibility

Prior to choosing whether or not an idea is ready to be part of your strategy,

make sure you assess whether it has high chances of being implemented. Do ask
yourself questions like, how much will it cost to implement? What are the other
resources required? Is there any legal constraints?

Big and good business ideas shouldn’t be ordinary dream, they must be realistic
ideas that will create impact and move your organization forward.

3. Check the Sales Assessment or Justifiable Business Model from the

Inception

This criteria for a good business idea is trying to project an ideal idea of having
an insight on various way sales have taken place and the necessary places that
might be needed to improve upon.

This also portray the idea of understanding how the propose business will earn
and generate money. Statistics have showed and proved that 90% of all sort of
businesses do fail in its first five years.

So, understanding and having a valid and justifiable business model of a gross
and net profit margin from the very start is an antidote to ruin, hence this made it
a criterion for a good business idea.

4. Usability

To generate a great business idea, check if the idea really fulfills the practical
aspects of it. Look if the business idea is utilitarian, if it does answer correctly
some particular problem or if it is going to meet some major market demand.

Even if it does, is it that the business idea could find a perfect market niche? The
usability, marketability and practicability of any idea are crucial. Do take note.

5. Check the Business Market Data and Competition

Why don’t you consider the market data and carry out research to check if the
business idea to choose is highly saturated or less patronized. Do consider going
for business where large players don’t fill strong positions.

Also, researching and analyzing the price per points of your to-be competitors
will also aid and give you more insight into the reason why people might be
seriously patronizing a particular good or service.
Be wary of going into businesses where numerous players are being funded well
or where the present business person has a certain sustainable advantage. For
instance, if a business of your choice is selling exclusively via independent
retailers, if possible, you might grow a market share by venturing into mass
retailers.

6. Defendable

Ability to defend firmly is another criterion of a good business idea. Will you be
able to defend your idea in the marketplace? Ask yourself: How will your idea
stand upright to these challenges?

How will customers react about the idea? Will there be need to persuade them?
Will the prospect understand the benefits of the business idea to them? How will
the business competitors react? Ability to proffer solution to these poised
questions is very essential while generating business idea.

6. Defendable

Ability to defend firmly is another criterion of a good business idea. Will you be
able to defend your idea in the marketplace? Ask yourself: How will your idea
stand upright to these challenges?

How will customers react about the idea? Will there be need to persuade them?
Will the prospect understand the benefits of the business idea to them? How will
the business competitors react? Ability to proffer solution to these poised
questions is very essential while generating business idea.

7. Profitability

This is usually the bottom line which everyone focuses on. Competing business
ideas are usually ranked in accordance with the earning they perceived potential.
This criterion for business idea is very imperative and never should it be over
emphasized.

8. Scalability
Check for business that could be systematized, developed through good
marketing with massive target audiences that would enable the whole exercise to
prove that it worth the effort.

Your scalability means you have glare leverage. You don’t need to do the work
alone and if you do, your efforts will surely be multiplied significantly.

Easier said than done, having read the above criteria for business ideas, it is up to
you now to plan how to sail through the market with the brilliant idea you’ve
chosen to pursued.

HOW TO BUILD A BRAND

EVOKING THE RIGHT EMOTIONS IN AUDIENCE PERCEPTION

In order to be competitive in the marketplace, all company’s need to have a wellestablished and
thought-out brand. It is difficult to create a brand that conveys the right

feeling and establishes a connection with its target group. The process consists of many

steps and subjective opinions are difficult to measure. This study aims to determine how

a branding process can be conceptualized and performed, in order to ensure a connection with its target
audience, as well as how the results objectively can be measured. In

this context, a branding process is defined as the proceedings of a series of well-defined

activities used to develop a value system, and communication framework for a business.

Objective

firstly, to develop a conceptual framework which

provides an understanding of how a new company should attack the process of building a

brand; secondly, utilize the framework to develop and design a brand identity for a startup company
within the food-tech industry: thirdly, implement the brand design into the

company website and test if the established identity resonates with the company’s target

audience.
BRAND

Brand

A Brand can be viewed as a belief system that originally was developed to differentiate one’s

products from competitors. The early pioneers of positioning and branding were familiar

with the practice of religion, and they understood that a belief system, once established,

could affect people’s behavior [4]. Today, brand can be seen as the holistic sum of customers

experiences, composed of visual, tonal and behavioral brand components [9].

To build a brand that connects with its audience, the brands core purpose needs to be

understood. The visual aspects of a brand such as color, logotype and typography are all

part of the visual aspects of a brand. Visual aspects do not matter as much if the brand does

not have a clear understanding of where it’s going or what it aims to achieve. Brand gets

separated into two parts, strategy and identity. Brand strategy contains internal parts and

positioning; these parts make up the foundation of the brand. Brand identity consists of

how the brand is perceived by the audience and contains visual and verbal expressions. The

customer only sees and interacts with a small part of the brand (everything above the water

surface in fig 1), as the majority of the brand is held internally [10].
Internet start-ups have traditionally been born from bright ideas and not devoted a lot

of focus on brand strategy. In most cases brand strategy and positioning has been an afterthought, that
often led to problems as the organization grew [11].

Today, brand is the foundation for many businesses [4]; companies try to build brands

that their customers can connect with emotionally [8]. Brand is a very broad term, but the

most important thing is providing some basic requirements: what the company is called, its

identity (logo or other trademarks), its mission, vision, values and positioning. These core

concepts are rarely changed in a brand because it would mean a loss of recognition, brand

equity and cost of implementation [4].

Any business, or company, that serves customers and does business under a fixed name has

a brand [4]. However, a brand is more than an iconic logo, a tagline or good marketing, it

represents what the company stands for and is therefore an important factor for success.

’Brand is about delivering on a promise made to customers’ [11]. The more holistic view of

brand is that it provides an experience to customers and audiences, express authenticity,

quality, relevance and differentiation [12] [11]. Brand serves as the DNA for all the activities
involved in creating value and engaging customers [4].

Branding

Brand and branding are two separate things. Brand can be seen as a promise and core

message of what the company stands for and offers to customers, while Branding elevates

ideas from brand in order to showcase who is providing the value. Too often brand is mixed

up with branding, but merely using the visuals from brand does not necessarily address the

brand’s core message or experience [4].

The human psyche

A brand is formed and lives in interaction with the values and feelings that are aroused in

recipients and customers [13]. In order to create a brand that customers can connect with, it

is important to understand some of the basic psychology behind the human psyche [14].

The importance of emotions

Brain scientist Antonio Damasio claims in the book Descartes Error from 1994, that Descartes

was wrong when he uttered his famous quote ’I think, therefore I am’. Damasio wrote that

Descartes was wrong because he did not include the importance of emotions. Damasio believes that the
emotional reaction customers get when they are exposed to different options

and impressions is what influences their decisions, not the thoughts that follow. Emotions

are part of the reward system, which regulates various neurotransmitters in the customer

(serotonin, dopamine, and endorphins). These substances in turn regulate whether the

customer will feel pleasure and desire or discomfort

The difference between emotions and feelings can be difficult to interpret. Damasio claims

that emotions come first and evoke a physiological reaction based on sensory impressions.

Feelings are the conscious experience of the emotions evoked [18]. Some emotional reactions

are however too weak, which means that feelings are not noticed by customers. It can also

be difficult to connect all the different names that exist for feelings to the exact emotional
reaction that evokes them. An example could be the struggle to find the emotional reaction

linked to feelings such as ’professional’, ’modern’ or ’innovative’

Unique selling proposition

Rosser Reeves first coined the term ’unique selling point’ (USP, today often referenced as

unique selling proposition) in the 1940’s. Reeves claimed that companies could convince

customers to choose their brand over competitors by focusing on one specific thing that

made their product or service unique [2]. Determining the USP of a brand requires research

and a good knowledge of customer and problems they face [19]. When the strategic work

of finding the USP is done, designer and marketing teams often develop a emotional selling

proposition (ESP), that can be seen as an equivalent to the USP, but that merely focuses on

the emotional triggers that will lead to a specific action

Brand experience

As the number of brands on the market increase, companies look for new ways to connect

emotionally with customers, become irreplaceable and create relationships that last [8].

The evaluation of value is based on the experience customers have. Brands can no longer

convince people to buy their products or services merely focusing on marketing, instead

consumers constantly poses the question ’did my experience as a buyer match up with the

expectation set by the brand?’ [4]. In order to create Usability and a user experience (UX)

that customers are satisfied with, it is important to firstly develop the outer layers that the

customer will come in contact with (see fig 2). These layers consists of Brand experience

and Desirability [20]. According to Nielsen Norman Group, the average user will stay 10 - 20

seconds on a website unless the company clearly states is value proposition and provides a

sought out desirability

Brand identity

Having a compelling brand idea does not communicate or engage much, if it is not complemented with
great design. The right design can help convey brand message both internally
and externally. When examining some of the larger digital brands of today, it becomes obvious that they
paid little attention to design in the start-up face. In most cases all they

were equipped with was a logo, and in best case a wordmark. Few of them invested effort

into designing a visual identity based on a well-defined brand strategy. If the technology,

service or product provided is disruptive enough this can work for a while, but as a company

grows larger and starts to communicate on multiple different touch-points, the need for a

well-established visual identity system becomes crucial. Hence, why many of the tech giants

of today has changed their tactics and started focusing more on the design aspect

Brand personality

Even though all brands are companies created to have a transactional relationship with

consumers, some brands succeed in creating a deeper connection with their audience. Many

brands that create such a bond with their audience are built with a strong alignment to

archetypes [22]. Archetypes provide a framework around which to build a brand. Swiss

psychologist Carl Jung believed there to be infinite archetypal symbols, he acknowledges

however, that some were more frequent and recognizable; for example, nearly everyone has

the image and understanding of a mother figure that is caring, dependable and compassionate.