Both terms are highly used in the business startup process by an entrepreneur. However, what is notable is that often businesses are started only with the idea, which is not converted or transformed into a real business opportunity. Because of that business startups immediately start to suffer after the startup stage. This suffer is manifested through lack of customers, and therefore a lack of money for financing the normal business operation.
An entrepreneur is a person who see opportunities, where all other people see a problems. That is the biggest advantage of an entrepreneur.
How Does This Work in the Practice When It Comes to Business Ideas and Opportunities?
Many companies (I think about successful businesses) are simply result of a problem or need that exists on the market and discovered by an entrepreneur. However, on the other hand, many companies are result of the personal problem of an entrepreneur who in such a frustrating situation comes up with one or more business ideas. But, this frustrating situation in that moment is known only to him. Only he feel the frustration from his own problem.
Are there some other people beside entrepreneur who find himself in the same frustrating situation?
If the answer is no, although these business ideas are a brilliant ideas they aren’t business opportunities ready for the successful businesses.
On the other side, if the answer is yes, then it is necessary to check if these business ideas are good business opportunities.
What’s the Difference Between Business Ideas and Business Opportunities?
As you can see from what I said earlier, business ideas are:
- known personally only to the entrepreneur,
- based on their own entrepreneur’s frustrations,
- innovation by the entrepreneur.
However, is an idea great only because it is great for you? Probably, not.
In a business world exist one basic principle, which say:
So, if you want to transform your business ideas into the business opportunities, you need to bring another person in the process. That person is the customer.
What Criteria Need to Meet Business Ideas to Become Business Opportunities
An idea can become business opportunity only if it meet all the following criteria:
- Business idea is attractive to customers.
- Customers can afford products and services that results from specific business idea.
- Entrepreneur can turn specific business idea into business reality.
If the idea is not attractive to potential customers it is not a good business idea. Because of that you need to check does on the market exist real need about the products or services in which results first idea. On the other side, if the business idea creates an expensive product or service, the potential customers could not afford them. This is also an bad idea at least now. And, of course the business idea must be implemented by the entrepreneur and he must have specific knowledge and skills in order to realize it in the practice.