Converting Business Idea to Successful Enterprise

Any kind of business independently on a market niche, type of sold product or service, and applied development strategy starts from nonmaterial source - a Business Idea. A catalyst for such business idea realization is an understanding that its implementation may change radically the life of a person, make it more saturated both emotionally, and materially. However, it happens quite often when a business idea may die out in its embryonic stage. Its author may even fail to understand whether it is good or not, as its investment attractiveness has not been studied, the market has not been analyzed, not to mention the drawing up of a business plan and execution of quantitative and qualitative market researches. A reason for such improper treatment of a business idea in major cases is the evident lack of resources required for its implementation. And this is not only the material resources expressed in a specified sum of start-up capital, but the most important is a lack of knowledge to construct the way to success. This knowledge creates the same firm spot the existence of which, according to the great Archimedes, may even move the Earth.

Pro-Consulting Team will create such firm spot for you and assist to find a lever due to which your business idea will move from ideal to practical aspect and acquire the real outlines of a successful enterprise.  A pledge of such positive result of cooperation with Pro-Consulting is a multi-year experience of our analysts who developed hundreds of working projects in various economic spheres. And initially, many of these projects, translated in specified business plans, have been only an ambiguous business idea. Today they are successfully developing, following the worked out marketing strategy and tactics, and periodically correcting the course, based on updated market condition data. 

In order to successfully translate a business idea into a profitable business, you should always remember that a set-up enterprise would rather run not in ideal conditions. Quite the other way, a contemporary market environment looks like the sea where, on the one hand, you may catch the fish, i.e. obtain the profit, or you may sink as well or be eaten by predators, should you fail the competition. To throw a fragile business idea into market elements, without previous exploration of environment, is myopic and may cause loss of funds. Thus, the analysis of a market, your product or service, subject to be sold wherein, is the primary and most important stage in decision-making process as regards the prospects of any business idea.

Market analysis is a comprehensive task consisting in key factors specification which had influence on demand for this or that product in the past, present and future. Knowing these factors and being skilled in using them enables to develop and implement an efficient strategy for specific company development or business idea implementation. At times, the effectiveness of considerable financial and other resources contribution depends on accuracy of market analysis. That is why, in this issue it would be better to address for help to experienced professionals such as Pro-Consulting analysts. We are numbering over one and a half thousand similar marketing investigations.

Each time, a structure of market analysis is determined based on customer needs, and may include the following sections:

1. General market performance. Analysis of its tendencies and main figures.
2. Industry government control. Market taxes and duties.
3. Products (goods and services) production and sales dynamics.
4. Principal market operators. Their description, segmentation and structuration. Key players share.
5. Market sales volume.
6. Foreign commerce.
7. Price and pricing in the market.
8. Consumers and their preferences. Consumers profile in segment B2B, B2C, B2G. Internet audience analysis.
9. Product sales channels (description and structure of the channel sales).
10. Products range presented in the market.
11. Conclusions. Estimated figures and tendencies. Recommendations on entry into market and development.
12. Industry investment appeal. SWOT and PEST-analysis of the market and its impact factors. Market risk map construction.

As a result of conducted work on market analysis, you will get entirely faithful representation on how your business idea will feel itself in real conditions, and what are its chances and ways for development.

With our help, you will learn much more about your future product and therefore you will be able to imagine a revenue generation mechanism from its sales. Thus, you will better and clearer understand strong and weak points of your business idea. Here is the list of required data to this effect:

• Goods/service. Kinds of goods you are going to sell, their main features.
• Goods peculiarities and their distinctive feature. Key profit as regards the client requirements – how you can satisfy them better than competitors.
• Who is a target client: age, solvency, habitation area and other characteristics.
• Sales and promotion channels: which ones supposed to be used, how do you plan to influence on the target audience.

Based on the received information background, it is possible to start planning the company’s practical organization which will translate a business idea into life. In this case, a business plan executed by International standards is required. It will not only serve as the road map for business creation, but it will also assist, when required, to attract outside financial resources, including the grants within the framework of governmental or International programs.

Business plant enables to:

1. Comprehensively plan and organize business.
2. Estimate the prospects and viability of your business idea and business projects based on existing situation in economy and its specific branch.
3. Understand the potential profitability and cost-effectiveness of the business.
4. Evaluate the volume of required capital investments for project organization, as well as the output of investments and time required for their return.
5. Attract the financing of investor or bank credit, and personally to make a decision on investment.

 Business plan should be executed in compliance with specific norms and requirements, which found their reflection in the following International standards.

When the goals and tasks as regards a business idea realization are clarified, the investment resources are determined and confirmed, the period of business plan organizational and production section will start. It includes the following points:

• Service technology/algorithm.
• Required premises.
• List of equipment, furniture, apparatus etc.
• Raw materials sources.
• Contractors.
• Staff.
• Permits.

To put it simply, this section describes both the investments allocated for business-idea which will turn into quite material subjects, in aggregate constituting the future income acquisition system.

And in order not to lose your correct way of business idea implementation, a project road map containing the answers to the following questions will come to help:

1. What stages do you have to go through to start the work?
2. What is the duration of each of them?
3. How much money will be required in every specific period of time?
4. What is the source of this money?
5. Who are the responsible persons?
6. What staff will be required for every stage?
7. When will your business start running?
8. What planning horizon should be considered after opening of the company?

The business plan will be in force even after the opening of a company and start of sales, as a separate section of this document it is devoted to their maximum efficiency. It defines:

1. How you will sell your products: wholesale or retail.
2. Price of goods in various working conditions with distributors and retailers.
3. Seasonality factor and its influence on demand.
4. Use of discounts and promotions for products.
5. Time required to gain the target audience.
6. Average monthly estimated sales volume.

As a rule, a business idea carrier wishes to implement it with a maximum efficiency, lest should be sorry for uselessly spent money and efforts. For this purpose, Pro-Consulting analysts estimate the profitability, cost-efficiency and investment attractiveness of the project. At that, they calculate the following indices:

Cost-effectiveness

• Sales
• Gross profit
• EBITDA
• EBIT
• Net Profit/loss

Profitability

• Gross profit Margin
• EBITDA Margin
• Ordinary Income Margin
• Return on sales

Investment attractiveness

• Discount payback period
• Net present value
• Internal rate of return
• Earning power of real assets

Spectrum of tasks solved by Pro-Consulting team for our clients is very wide, same as the spectrum of business ideas striking not only the beginners, but the experienced entrepreneurs as well. Hereinbelow are the most typical orders successfully fulfilled by our analysts.

Analytical review of legal services market in Ukraine
Business idea: specification of the current situation in the market in order to work out the company’s development strategy.
During preparation of this review, the legal services rating has been executed, the price policy in legal service sphere by regions of Ukraine - analyzed.

Review of Ayurvedic services market in Ukraine
Business idea: entry to the Ayurvedic clinic market.
During preparation of this review, the analysis of opening has been conducted, market competitors and price policy - described, market niches perspectiveness - estimated, industry investment attractiveness - evaluated.

Estimation of fruits processing raw material sources potential  
Business idea: expansion of processing company production
As a result of study, the market characteristic and development tendencies have been provided, production, key operators and foreign economic activity - analyzed, consumer profile, range and sales channel - drawn up. Fruits industrial production and processing market has been described.

Review of the world hotels market
Business idea: determination of the promising country for tourism business development.
Tendencies of tourist flows in the world have been analyzed, as well as in specific countries (Hungary, Croatia, Lithuania, Estonia, Bulgaria, Georgia, Check Republic and Greece); main and adjacent competitors have been determined by given parameters, average accommodation price level for these countries and hotel selection criteria by consumers - determined.

Business plan for fruit storage organization
Business idea: construction of fruit storage with 1200 ton capacity to correspond to all up-to-date technical and production requirements.
Within the framework of this project, the fruit-and-vegetable product market has been analyzed, as well as the fruit-and-vegetable storage market which confirmed the cost-efficiency and perspectiveness of development of this kind of activity. Storage creation process has been described in details, including the premises characteristics, requirement in equipment and personnel. Enterprise financial model has been prepared, risks - estimated and negative effects minimization ways - worked out. This project goes beyond the private bounds of an ordinary business idea as it has a great meaning for foodstuffs safety and increase of employment level of the population in our country.

Business plan for hotel and restaurant complex expansion
Business idea: construction and opening of one more building.
Thanks to a business plan developed by all the rules, it became possible to attract credit sources to implement the intended. From this document, a creditor will know for sure, how the provided by it funds will be allocated, and when it will be able to get them back with profits. That is why a customer will have no problems with financial resources on realization of its business idea.

Business plan for medical center creation
Business idea: opening of a dedicated private medical clinic with out-patient reception.
The project has been executed with a purpose of competent planning of future clinic activity that enabled, even on its initial stage, to forecast the results of its operation, estimate possible profitability, and determine its strong and weak points.

Business plan for granary construction
Business idea: set-up and arrangement of work of a modern elevator with 50-ton simultaneous storage capacity for cereal and leguminous crops.
Description section of prepared investment document contains characteristic of a project initiating company, a detailed description of production, as well as everything required for project implementation, including the equipment and personnel.
Economic efficiency and investment attractiveness of the elevator construction is proved by financial model provided in the business plan containing a detailed plan of investments, financing schedule of project implementation stages, as well as the calculation of its main investment indices: discount payback period, internal rate of return, earning power of real assets and net present value. This business plan became a ground for attraction of additional investment resources for business idea implementation.

To order investment documentation or another services, or to purchase a published project, please contact us via info@pro-consulting.ua
or +38 (044) 233-34-32