Question

Define business idea

Answer 1

Business idea

A business idea is a concept which can be used for commercial purposes. It typically centers around a commodity or service that can be sold for money, according to a unique model. There are several methods for developing and testing a business idea. The ability to come up with a business idea can be transformed into a viable business, where ideas supported by feasibility and a business plan can then be sold to interested investors, firms, and interested parties for a lump sum or a management contract, or as agreed. Business ideas, if introduced at the right time, when demand for such service or a product introduced by the idea is expected to surge, can lead to a very profitable business. Business ideas are always available through different sources; however, it is the application applied on these ideas, and timing makes all the difference in failure or success.

The characteristics of a promising business idea are:

• Innovative
• Unique
• Problem solving
• Profitable

A business idea is often linked to its creator who needs to identify the business' value proposition in order to launch to market and establish competitive advantage.