THE BUSINESS IDEA/CONCEPT

Meeting needs is the basis of all business. You can devise a wonderful
machine, but if it does not address some real and important need or desire,
people wont buy it, and your business will fail. Even Thomas Edison
recognized this fact when he said, Anything that wont sell, I dont want to
invent. (The Successful Business Plans: Secrets and Strategies, Abrams
2011)
The process of developing a business plan is very similar to conducting
business research or decision-making. In either case (business research or
decision-making), the process starts with a management question, dilemma,
problem, hypothesis, or a claim that needs to be answered, resolved,
addressed, verified or disproved.
An Aha! Moment (Maybe):
For example, Steve H. observes, As a former competitive runner, who now is
a casual runner, I've noticed that Northern New Jersey (NNJ) lacks a shoe
and apparel store that caters to the more serious athlete. Based on this
casual observation, Steve is considering developing a running shoe and
apparel store in the Northern New Jersey area. The business question whether or not this business idea in this locale will be financially viable
needs to be answered.
Data-Driven Decision Making:
Should Steve develop this business based solely on this casual observation?
A prudent business person would likely collect more information and data
that, collectively, can be summarized to help him in coming up with a
rational decision. In business planning, this involves investigating whether or
not there is real need or desire for this type of business. This is done by
research via Industry, Market, Customer, and Competition Analysis. This
phase is perhaps the most time-consuming part of developing a business
plan as it involves the use of a formal research investigation process. All
business plans go through this process. Yours will as well. Remember that
writing a business plan is just like writing a formal research paper where you
will be citing information and original ideas that are not yours. You must give
proper credit to the source of the information or the author(s) of the idea(s)
you are borrowing. This is done via proper citations within the body of the

report and a Bibliography (or Works Cited) at the end of the report. View
these videos to see the proper and efficient citation method.
http://www.youtube.com/embed/QErOX_SWhks/re=0
http://www.youtube.com/embed/t0wpvzwZFtU/ref=0
You are encouraged to start your research by reading up on anything related
to your business idea. Don't be alarmed if you feel overwhelmed or do not
know how to approach this project at this time. Almost any research starts
that way. Work on the project in small increments but constantly. As the
saying goes, "inch by inch, it's a cinch; yard by yard, it is hard." You
are encouraged to also keep this in mind as you develop your business plan
in BA499.
Think of the research process as akin to gold or precious metal mining.
Before you find a nugget of gold (or nugget of information in research), you
first need to know where to find gold (where to find your data), Then once
you are able to know where to mine, you have to move tons of dirt before
you are able to collect a fraction of an ounce of gold (you have to sift through
volumes of literature, articles, information, etc. before you find relevant
information). Sometimes, one finds 'fools' gold. We need to have the
knowledge to know the difference. In the same manner, we need to
discriminate between useful/valuable information and garbage information.
Finally, we need to know how to process the raw material (as in proper
panning) to retrieve the gold in them. In research, this is akin to using the
appropriate procedure for manipulating the data in order to produce useful
information.
Viable Idea or Not?
Developing the Industry, Target Market, Customer, and Competition Analysis
(ITMC) sections of Steves business plan should give him an initial answer to
his management question, Does Northern New Jersey (NNJ) lack a shoe and
apparel store that caters to the more serious athlete? If based on this
analysis the answer is Yes, then Steve may proceed and develop the rest of
the business plan (strategy, marketing, operations, management, financial,
exit plan, etc.); otherwise, Steve must reconsider his original business idea.
Much of the business plan component will be developed in BA 499: Business
Planning class.

Keep in mind that not all business ideas, just because you observe or think
they are needed or desired, will NOT turn out to be viable. A careful research
on the ITMC sections of the business plan will be your first reality check.
Should you discard the business idea if the initial business idea does not turn
out to be viable based on your ITMC analysis? Perhaps not quite yet.
Sometimes, tweaking certain portions of the ITMC sections e.g. refocusing
ones target market, or differentiating oneself from the competitors, or
developing a strong marketing plan can make an unviable initial plan to
one that is viable. Again, you need to make certain that the data support
these changes.

Importance of Data:
As it is in business research, the development of a business plan relies on the
availability of useful, accurate, and reliable data. This typically comes in the
form of secondary data. In choosing a business concept or idea that you will
develop a plan for in BA499, we strongly suggest that you develop one for
which there is abundant secondary data.
Primary versus Secondary Data: Whats the Difference?
But what if data is dearth and you still want to pursue developing a plan for
the business concept or idea? In this case, be prepared to collect primary
data to support your plan. Collecting primary data is oftentimes timeconsuming, expensive, and labor-intensive.
Click this link http://www.youtube.com/embed/z9uu2G9uBhg/rel=0 to view a
video on the difference between primary and secondary data.

ESRI Business Analyst Online: A Must Use! IMPORTANT!

We strongly encourage you to use Esris Business Analysis Online. It is a

Web-based business data source that combines GIS technology with detailed
data. You will find this Web resource invaluable as you obtain relevant
information for your market-customer-competition analyses. Subscription to
this resource is open to SOU students and faculty.

What does Esri BAO have to offer?

To learn what BAO can provide you in your research, view these two videos:
http://www.youtube.com/embed/VTVHco4wqmo/rel=0
http://www.youtube.com/embed/kEhpFVOBNEw/rel=0
IMPORTANT!

IMPORTANT!

If it is your first time to access ESRI-BAO, view this video to see how to
register for subscription http://www.screencast.com/t/4Oro01p1eH
IMPORTANT!
Once you have a subscription you can begin using Business Analyst Online
at bao.esri.com or Community Analyst at communityanalyst.esri.com

FORMALIZING THE BUSINESS IDEA/CONCEPT

Use the template below to formalize your business plan idea. One way to
help you start the process of conceptualizing, organizing and crystalizing
your business idea is to write down in as much detail as you can the answers
to the questions/items listed on the template.

INSTRUCTIONS FOR WRITING THE BUSINESS IDEA/CONCEPT

1. Use the template below. Remove the italicized instructions contained
in each section box and replace them with your written text. Fill in the
boxes with as much detail as you can (or as much information as you
have now). Do not alter the formatting (boxes and fonts) of the
template.

2. Delete this page and the previous pages. But be sure to read the
previous page before deleting them.

3. Important: Have someone read/proofread/edit your work.

4. Please use the following file-naming format:
Business Plan Idea Last Name, First Name (e.g. Business Plan
Idea Ordonez, Rene)
5. Remember that this is a living document. You will be using and
refining portions of this as your research on your business ideas goes
throughout the term.

6. Upload the file to the appropriate link (Final Business Plan Idea) in
Moodle.

BUSINESS IDEA/CONCEPT TEMPLATE

BA 427 Business Policy and Strategy

Note: Major portions of this template were adopted from The Successful Business
Plan (Abrams).
Refer to and read Chapter 1:The Successful Business of your Business Planning text
Name:

Last Name, First Name

Proposed
Business
Plan
Topic/Title:

Provide a brief descriptive title of your BP idea.

Descriptio
n of the
Business
Concept:

The description of the business concept should be clear and specific.

Why do
you think
there is a
need or
desire for
this
business
(products
or
services)?

At this point, you simply need to discuss what you think is needed or desired
by your target customers (see section below), why you think there is a need
or desire, and how you plan to meet this need or desire. Later in the term,
you will develop this idea further by providing data or information, via
research, supporting your perception about the need or desire for your
business.

How does
this
business
plan align
with your
personal
skill set?

Provide some background information about you and how this idea aligns
with your skills and experience.

What
industry
does the
business
belong?
(Find the
appropriat
e NAICS
code)

Watch the video in the link below for explanation on what a NAICS code is and
how to find the code for your business. This is important information in
researching industry trends and analysis. This video was created by the
Western University Library. This is a useful resource.

Who do
you see as

Provide a detailed description (characteristics, demographics) of your

potential customers. This will help you segment your market and differentiate

http://www.youtube.com/watch?v=3VW3Iq-yXho

your
potential
customers
?

your business. Refer to your BA330 textbook for market segmentation and
differentiation. Describe whether your potential customers are local (estimate
the radius of potential market, if applicable), regional, national, international,
or online. Later in the term, you will be doing research on the size of
your potential market based on the characteristics and
demographics you list here.

What
companies
and types
of
companies
do you
consider
to be your
competitio
n?

Provide a narrative of your perceived or known primary and secondary

competitors. Later in the term, you will be investigating the strengths and
weaknesses of your competition as well as areas where you will be competing
within. You will be using this information in developing your niche in the
market.

What are
your
competitive
advantages
, if any, in
the listed
areas? Be
specific in
your
explanatio
n.

New Products/Services:

New or Underserved Markets Reached:

New or Improved Delivery or Distribution Method

Methods of Increased Integration:

Data
Availabilit
y

List what kind of data and data sources you expect to use in developing your
business plans industry, market, customer, and competition analysis? Be
specific.

Reference
s and
Bibliograp
hy

[List all references cited in the paper]