The idea equation¶

Every business idea out there consists of different components. when an idea doesn't have all of these components, it is not a complete business idea.

Example of a complete idea:¶

• Vacation rental owners have trouble buying rental supplies like linens & towels. This problem would be solved with a subscription service business that automatically replenishes these supplies.

Example of incomplete idea:¶

• Vacation rental owners rely too much on one or two platforms for bookings.

Components¶

A complete business idea consists of 3 components:

• The subject
  • who in your idea is benefitting from the product / service?
  • Group of people I'm targeting with this idea.
  • Don't just use all people, pick a specific group.
• The problem / benefit
  • Identify what the subject is having a problem with.
  • How the group will benefit
  • Problem example: Employees in midsize companies want to communicate with rich media, like images. Currently they cannot, and they have to use x,y,z workaround in order to do it.
  • Benefit example: By supplying all employees in mid-size companies with bluetooth headsets, they could communicate at 3x their normal rate.
• Business model
  • Have more business models for backup

Complete business idea = Subject + Problem/Benefit + Business model