A Business Idea and a Business Opportunity
Today, many entrepreneurs are not aware of the main difference between a business opportunity and a business idea. As a result, employers interchangeably use both terms. As a concept, any commercial idea can be applied to earn money. It centers on products and services that can be offered for capital. Business opportunities, in turn, are the concepts that an entrepreneur researches, refines, and packages into the promising ventures that are ready to launch. The paper seeks to explore the main differences between these two notions. It also aims to underscore that while successful business starts as someone’s idea, a business opportunity, on the other hand, is a proven concept that produces ongoing incomes.
Although commercial ideas have the potential to make profit, they do not have any commercial values (Bragg & Bragg, 2005). In reality, they exist in an abstract form, in the mind of the investor. Not all business offers can be considered brilliant. However, most of them end up being profitable. Every entrepreneur should conduct a plausibility check in order to reveal ideas’ chances in the market and check their innovative content. Promising commercial suggestions must have a clear focus, be gainful in the long run, relevant, unique, and new.
The profitability and acceptability of business idea largely depend on how unique the concepts are. Being advanced implies applying distribution methods and conventional products that have been occasionally adopted before. The whole business system can be progressive. For example, the famous global courier company FedEx revolutionized its post services through the round the clock operations and quick delivery across the world (Birla, 2005). Consequently, the company adopted an innovative system, which eventually made it the global leader in the parcel and mail delivery services.
Commercial ideas promise to offer benefits to its clients that are passed in the form of lowered costs. Therefore, every business suggestion that promotes decreasing price will be profitable in the long term. Successful intentions should offer advantages to every customer by resolving issues or fulfilling needs. It is necessary to make sure that a market will gladly accept this idea with a help of mechanism producing incomes. A successful business offer shows how much a firm will earn and in what way. While numerous commercial ideas may daily strike the companies, only a few will get high profits in the long term based on the estimated feasibility and market research. Many entrepreneurs regard these few concepts as the real business opportunities. They should have minor liability risks, high gross margins and the potential for residual incomes and constant improvement. The initial capital investment should be realistic. There is a need of ability and strength to lead business to prosperity. The level of enthusiasm should be very high.
After the company has refined and packaged its business opportunity, it should document it by creating a business plan. Entrepreneurs can realize it themselves or sell it to somebody else for profit. For many years, the famous U.S. businessman Colonel Sanders attempted to sell his idea of chicken recipe. However, nobody wanted to listen to him until he packaged it leading to the emergence of Kentucky Fried Chicken (Bennett, 2010). It is a good example since it reflects the moral of the lesson that every investor prefers to invest in a commercial opportunity and a venture, not a business idea.
The world is full of great and creative suggestions. Unfortunately, it lacks managers with the capacity to transform these ideas into profitable business possibilities. The development of the offers differs from turning ideas into commercial opportunities. Therefore, a fundamental difference between business possibilities and ideas is that a company can sell an opportunity, but no one can sell an idea since it is difficult. Only market research, feasibility studies, elaborated business plans and the establishment of business teams will help an idea to become an opportunity thus attracting investors and necessary funding.
Bennett, B. (2004). Year to success. Sudbury, MA: Archieboy Holdings, LLC.
Birla, M. (2005). FedEx delivers: How the world’s leading shipping company keeps innovating and outperforming the competition. Hoboken, NJ: John Wiley & Sons, Inc.
Bragg, A., & Bragg, M. (2005). Developing new business ideas: A step-by-step guide to creating new business ideas worth backing. Edinburgh Gate Harlow, UK: Pearson Education Limited.