It is possible to turn any idea into a business. Hoola hoops and yo-yos are two examples of seemingly insignificant ideas that became popular without advertising. The products themselves attracted attention, and people bought them. Unfortunately,
the manufacturers went out of business as quickly as they began.
Ideas that turn into successful businesses must offer products and services that possess quality and satisfy a need or want. A business cannot survive without providing products that people are willing to pay a reasonable price.
An example of an idea turning into a massive business is Signtronix. Anyone can make a sign that advertises products. That idea
has been in the business world for generations. However, to create another sign requires imagination. There has to be a new idea that is completely different from all other signs. In addition, that sign must attract attention, and say something that advertisers want to say.
The idea is born, and imagination is applied so that something new is created that can survive in the competitive world. What is the next step?
In starting any business, you should cover all of the legal requirements. You should secure patents or copyrights, and be certain that all city, county and
state laws are being obeyed.
The next step is to make a business plan to determine the capital needs. After determining the capital needs, planners should look for markets to develop a cash flow. The plan should determine how long it will require to establish a sufficient cash flow to support the business. This step will determine the time of business that may be financed.
If one person can raise enough capital to fund the business, he or she may establish a sole-proprietorship. If additional funds are needed, the owner may seek partners. If the required funding is too large for an indicial, he may sell shares and form a corporation.
Another innovative way to raise capital is to use an Employee Stock Option Plan. It isn’t surprising that Signtronix chose this type of business organization because it indicates imagination. A major benefit of the ESOP is that the employees own the company and, therefore, share in the profits and losses. All employees are concerned with operating efficacy because it directly affects both products and profits.
Once the idea has turned into a business, new ideas are needed to keep it operating. No business can stand still and succeed. Every business has competitors that are constantly looking for new products and for ways to improve old products. Only new and better ideas will beat the competition. Every new business begins with an idea. The idea involves something new or makes improvements in something old. The entrepreneur recognizes opportunity as he or she sees the extraordinary in the ordinary.
Some entrepreneurs may seize the opportunity to make the hoola hoops and yo yos, but most know that they must have products that supply quality needs and wants for their businesses to become massive businesses.
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