Part 2: The Business Idea Equation: The Value You Can Bring
If you are going to be thinking of business ideas, and move forward in your entrepreneurial journey then knowing the value you can bring to the marketplace is crucial. You’ll also need to know how you can find all the aspects that make up the value you bring. When you're done reading this you’ll be able to easily find problems you can solve with the value you can bring.
In part one we covered the problem, why it is important, and how to discover problems that carry some validation. If you haven’t read that yet, I highly recommend you do so first, as it will help you with this blog. You can find part 1 here.
Why is it important?
The value you can bring is very important. If you are going to execute on a business idea and solve a problem, you are going to need capabilities, resources, and skills to do this. This is all part of the value that you can bring.
Your capabilities include both your natural and acquired strengths and skills. The combination of your strengths and skills also makes you unique, take note.
Your resources include your money, time, help, access to vital equipment, etc, that you will need to operate your business.
For example, if someone wanted to start an industrial building development company, they would need to have access to large amounts of money to afford the huge material, labor, and machinery costs. If you do not have access to that kind of capital, it is key to think about how you can get gathering funding or move onto a different problem with the value you can bring at a smaller scale.
If you choose to move forward with a problem and you don’t have all the value to bring the idea to life, then you will need to start thinking about how you can fill the gaps. That could involve hiring a co-founder or a key employee that will be able to fill in where you cannot.
Finding Value You Can Bring to The Market
If you are wondering how you can take into account your resources, skills, and capabilities? I’ve made an actionable checklist below with both free and paid (for the advanced) exercises you can try.
This is a list of things you will want to think about when you are taking into account your resources:
1) How much money do I have access to, to put towards my business idea?
2) How much time can I commit towards my business idea?
3) If I am not making money in the first few years, can I afford to live or will I need to get a job?
4) Who in my network would be generous to lend me the key tools I need to execute this?
5) What clubs/societies/accelerators do I have access to that can help me?
6) What does my public library offer for help? (Example, In Vancouver, the Downtown public library has recording studio access).
7) Would any of my friends or family lend a hand in the beginning to help me?
As successful entrepreneurs have said, it is important to know and understand your capacity and resources if you want to be successful. So many business ideas fail because they run out of money or other key resources because the founder underestimated the capacity this business idea was going to take.
If you are looking a more advanced version to find your strengths, I would highly recommend you buy and take the Strengths Finder 2.0 book. I could go on for hours about why I love this strengths test, and how it is the best one out there, so if you are wondering more, you can read the review I wrote.
Capabilities & Skills
To account for your capabilities and skills, I would write down what you believe you are good at. If you end up getting stuck, a really helpful thing that I have done is ask my close friends and family what they think I am good at. They know me very well from a different point of view so they can offer great insight to what I am good at and enjoy doing. Get stuck, answer these questions:
1) What am I good at?
2) What do others say I am good at?
3) What task do I get lost for hours in?
4) How many hours in a day can I handle working?
5) Do I need others to help me?
6) Do I have the time to learn everything or will I need to hire people sooner?
Putting It All Together
Knowing how the value you bring to the marketplace fits into the problems at hand is a very important tool to have as an aspiring entrepreneur. It will make your chances of success with your business idea much higher, than if you were to otherwise ignore all this information.
Make sure you use the checklist for finding your resources and take time to learn what your skills and strengths are. I highly recommend the Strengths Finder 2.0 book to find your strengths. All of this will be important for part 3 of the business idea equation.