Turning that idea into a business
By James Abola
Two men were asked to explain how the world came into being. One answered, the universe is a result of a major event termed the “big bang”, which made random matter to become organised as we see in nature and living things. No, interjected the second fellow, the big bang theory doesn’t add up, because if it were true then tell me where did the matter needed for the bang come from? He continued to assert “the universe is the work of a supreme and ever present being, who is responsible for its design and order.”
When it comes to the issue of originating a business idea there is a remarkable parallel with the thinking about the origin of the universe. Some people believe that to come up with a good business requires a big bang. The emphasis is usually on promotion and marketing to get customers turned on to the products of the new business.
Other people put their money on a creative approach to establishing a business. The essence of the creative approach is a business idea. It is out of this idea that the business is created.
Both the big bang and creative approaches are not necessarily opposed to each other and can be used in a complementary way. The big bang is usually capital intensive and more applicable to either businesses with a lot of capital or an on going business that is introducing a new product. The creative approach is usually the lifeline for a person starting a business with a limited capital.
The first step in the creative approach is identifying the business idea. A business idea could be original or copied from another source.
The original idea is something that has not been done before, usually within a certain economy, for instance the first food café to be established in Uganda could have been considered an original idea in the Ugandan context. Getting an original idea requires being observant and taking time to think. Some of the leading companies in the world pay a lot of attention to getting original ideas, so that they can continue to produce products that meet the needs of consumers. Samsung, a leading electronics company has its VIP house, where research teams retreat to dream up new products.
It is not too expensive for even a small business owner to create a thinking space. It could be a bench in a public park or an afternoon in the house when children are at school. The biggest challenge usually isn’t space or even money but understanding that thinking is important to business development and creating the time for it.
The other way of identifying an idea is through copying or imitation. The formal way of copying is the use of franchise. Take the example of McDonalds. When you go to a McDonalds store you are sure to get a humbugger but that is not the business of the parent McDonalds company, its business is to sell their blue print of doing business to whoever wants to open such a store. The local example of a franchise is the Lucky 7 Stores that are found in most major towns of Uganda.
Copying can also be informal; you see what is working somewhere and adapt it to your local environment. In 1998 I had a discussion with the proprietor of a beautiful Inn located in Mbale Town. I wanted to know how the Inn owner always managed to keep ahead of other Inns and even Hotels in the town. His response was that whenever he travelled he kept his eyes open to what concept he could bring back and implement in his business. Sometimes it is the idea of a flower garden or customer care. What I liked about this Inn, however was that the ideas were usually adapted before implementation, thus giving it a local and authentic feel.
While conceiving an idea is important, how the idea is handled after conception is equally or even more important. Some ideas fail because of premature implementation. Before implementing an idea take time to think it through and develop it into a workable plan. It may even be advisable to hire professional help to transform the idea into a fully fledged business plan.
Another reason why good business ideas do not result into good business is the danger from copy cats. There is an Acholi saying that if you want to trap a bird you don’t talk about it at the fire place. The moral is that a competitor will learn about your plan and tamper with the bird’s nest or even scare away the prey before you get to set the trap. A good idea should be kept close to the chest, only release what is necessary until you are ready to implement the concept.
Years back I had a friend who had the idea of opening an Internet Café in an upcountry town. He wanted to start with a bang and took about a month to market the soon to be open café on the local FM station. By the time he was ready to open, a competitor had opened another café on the opposite side of the street. His planned big bang became a fizzle because he did not take adequate measures to safeguard his idea before it matured.
Contact Information: jhabola@yahoo.com
Two men were asked to explain how the world came into being. One answered, the universe is a result of a major event termed the “big bang”, which made random matter to become organised as we see in nature and living things. No, interjected the second fellow, the big bang theory doesn’t add up, because if it were true then tell me where did the matter needed for the bang come from? He continued to assert “the universe is the work of a supreme and ever present being, who is responsible for its design and order.”
When it comes to the issue of originating a business idea there is a remarkable parallel with the thinking about the origin of the universe. Some people believe that to come up with a good business requires a big bang. The emphasis is usually on promotion and marketing to get customers turned on to the products of the new business.
Other people put their money on a creative approach to establishing a business. The essence of the creative approach is a business idea. It is out of this idea that the business is created.
Both the big bang and creative approaches are not necessarily opposed to each other and can be used in a complementary way. The big bang is usually capital intensive and more applicable to either businesses with a lot of capital or an on going business that is introducing a new product. The creative approach is usually the lifeline for a person starting a business with a limited capital.
The first step in the creative approach is identifying the business idea. A business idea could be original or copied from another source.
The original idea is something that has not been done before, usually within a certain economy, for instance the first food café to be established in Uganda could have been considered an original idea in the Ugandan context. Getting an original idea requires being observant and taking time to think. Some of the leading companies in the world pay a lot of attention to getting original ideas, so that they can continue to produce products that meet the needs of consumers. Samsung, a leading electronics company has its VIP house, where research teams retreat to dream up new products.
It is not too expensive for even a small business owner to create a thinking space. It could be a bench in a public park or an afternoon in the house when children are at school. The biggest challenge usually isn’t space or even money but understanding that thinking is important to business development and creating the time for it.
The other way of identifying an idea is through copying or imitation. The formal way of copying is the use of franchise. Take the example of McDonalds. When you go to a McDonalds store you are sure to get a humbugger but that is not the business of the parent McDonalds company, its business is to sell their blue print of doing business to whoever wants to open such a store. The local example of a franchise is the Lucky 7 Stores that are found in most major towns of Uganda.
Copying can also be informal; you see what is working somewhere and adapt it to your local environment. In 1998 I had a discussion with the proprietor of a beautiful Inn located in Mbale Town. I wanted to know how the Inn owner always managed to keep ahead of other Inns and even Hotels in the town. His response was that whenever he travelled he kept his eyes open to what concept he could bring back and implement in his business. Sometimes it is the idea of a flower garden or customer care. What I liked about this Inn, however was that the ideas were usually adapted before implementation, thus giving it a local and authentic feel.
While conceiving an idea is important, how the idea is handled after conception is equally or even more important. Some ideas fail because of premature implementation. Before implementing an idea take time to think it through and develop it into a workable plan. It may even be advisable to hire professional help to transform the idea into a fully fledged business plan.
Another reason why good business ideas do not result into good business is the danger from copy cats. There is an Acholi saying that if you want to trap a bird you don’t talk about it at the fire place. The moral is that a competitor will learn about your plan and tamper with the bird’s nest or even scare away the prey before you get to set the trap. A good idea should be kept close to the chest, only release what is necessary until you are ready to implement the concept.
Years back I had a friend who had the idea of opening an Internet Café in an upcountry town. He wanted to start with a bang and took about a month to market the soon to be open café on the local FM station. By the time he was ready to open, a competitor had opened another café on the opposite side of the street. His planned big bang became a fizzle because he did not take adequate measures to safeguard his idea before it matured.
Contact Information: jhabola@yahoo.com
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