An idea is the first step in the process of creating a business. Most ideas, no matter how brilliant they may seem, never actually end up becoming a business. This book explains how to
Look for new small business ideas.
Evaluate ideas for their commercial potential.
Unlock the strategies that turn an idea into a business.
English’s focus is on finding the seed of an idea and the process of developing it into a genuine business opportunity. He includes practical diagnostic ‘reality checks’ developed in his small business workshops. He also includes an analysis of changes in the Australian small business environment as result of Covid-19.
This practical volume is ideal for any budding entrepreneur looking for guidance on how to evaluate a business opportunity and build a commercial strategy around it. It will also be an ideal secondary reading for books on entrepreneurship and small business courses.
Author(s): John W. English
Publisher: Routledge
Year: 2023
Language: English
Pages: 183
City: London
Cover
Half Title
Title
Copyright
Disclaimer
Contents
Introduction
Part A Unlocking an idea
1 Turning ideas into opportunities
Pandemic legacy
Health and safety
Going digital
Buying locally
Spotting ideas
Product ideas
Service ideas
Market ideas
Radical ideas
Assessing commercial potential
Potential risks
Capturing the market
Operating constraints
Financial projections
Creating a blueprint
Summary
2 Start-up essentials
Legal structure
Sole proprietorship
Partnership
Proprietary company
Trust
Australian Business Number
Registering a name
Choosing a name
Company name
Business name
Domain name
Trademark
Tax File Number
Australian Business Licence Information Service
Premises
Working from home
Serviced office
Business incubator
Setting up commercial premises
Insurance
Public risk insurance
Fire and property insurance
Business continuation insurance
Insuring a home-based business
Employing staff
Fair work system
Occupational health and safety
Workers’ compensation insurance
Summary
3 Getting help
Professional advisers
Legal advice
Financial advice
Specialist advice
Local support
Business mentor
Business enterprise centre
Trade association
State and territory support
Commonwealth support
Summary
Part A Reality check: What are the risks?
External risks
Compliance risk
Technology risk
Economic risk
Political risk
Dependence risk
Internal risks
Planning risk
Marketing risk
Deliverable's risk
Liquidity risk
Personal risk
Feedback
Part B Unlocking a marketing strategy
4 Marketing strategy
Understanding customers
Finding a market niche
Positioning a business
Products and services
Promotion
Pricing
Distribution
Marketing mix
Summary
5 Traditional marketing
In-house communications
Publicity
Sponsorship
Traditional advertising
Yellow pages
Newspaper
Classified ads
Display ads
Magazines
Radio
Television
Outdoor advertising
Personal selling
Summary
6 Digital marketing
Importance of digital marketing
Email marketing
Social media marketing
Types of platforms
Popular platforms
Marketplaces and directories
Your own website
Online advertising
Mobile marketing
Summary
Part B Reality check: Can the target market be captured?
Anticipated demand
Market size
Market growth
Market stability
Commercial lifespan
Spinoffs
Market acceptance
Need
Recognition
Compatibility
Complexity
Distribution
Market strength
Differentiation
Value
Customers
Suppliers
Competitors
Feedback
Part C Unlocking an operating strategy
7 Service operations
Diversity and growth in services
Promoting services
Unique challenges
Competition
Pricing
Hospitality services
Food and beverage operations
Food and beverage management
Food and beverage marketing
Accommodation operations
Accommodation management
Accommodation marketing
Summary
8 Online operations
Virtual marketplaces
Amazon
eBay
Etsy
Merchant operations
Finding information
Placing an order
Making payment
Making delivery
Security and privacy
Registering a domain name
Building a website
Template website design
Custom website design
Choosing a hosting service
Promoting a website
Register with search engines
Online directories
Promoting online
Buying banner ads
Link advertising
Post announcements on blogs
Publish an e-newsletter
Promoting offline
Mobile devices
Summary
9 Retail operations
Disruption and innovation
Retail location
Negotiating a lease
Rental payments
Lease term
Permitted uses
Interior layout
Display
Colour and lighting
Retail operating cycle
Purchasing
Pricing
Promotion
Stock control
Point of sale technology
Summary
10 Manufacturing operations
Location
Layout
Production
Outsourcing
Stock control
Distribution
Summary
Part C Reality check: What are the operating constraints?
Expertise
Marketing expertise
Technical expertise
Financial expertise
Functional expertise
Managerial expertise
Resources
Financial resources
Physical resources
Human resources
Critical information
Help and assistance
Feedback
Part D Unlocking a financial strategy
11 Money management
Controlling cash flow
Profits are not cash
Cash flow budgeting
Step 1 forecasting sales
Step 2 identifying cash receipts
Step 3 identifying cash disbursements
Step 4 determining net cash flow
Step 5 determining the future cash position
Credit cards and cash flow
Accounting system
Balance sheet
Assets
Current assets
Non-current assets
Liabilities
Current liabilities
Non-current liabilities
Owner’s equity
Income statement
Sales revenue
Cost of sales
Gross profit
Operating expenses
Net profit before tax
Provision for income tax
Net profit after tax
Analysing profitability
Breakeven point
Pricing decisions
Investment decisions
Advertising decisions
Product line decisions
Summary
12 Financing and taxation
Borrowing money
Short-term borrowing
Trade credit
Overdraft
Accounts receivable financing
Inventory financing
Bridging finance
Long-term borrowing
Personal loan
Term loan
Mortgage
Shop around
Leasing
Equity capital
Internal equity capital
External equity capital
Government grants
Taxation
Pay-as-you-go (PAYG)
Goods and services tax (GST)
Income tax
Capital gains tax
Fringe benefits tax
Superannuation guarantee
State taxes
Facing a tax audit
Summary
Part D Reality check: Do the financial projections make sense?
Revenue
Investment and financing
Profitability
Breakeven
Cash flow
Feedback
Appendix: Commercial feasibility rating
Index
