Time and again have discussions been done on what shapes a good business idea.
Today’s era is the era of start-ups, of young minds breaking the conventional barriers and bringing about a change in the society. People have started to choose independence of work over futile jobs pouring fixed income into their pockets. People have started to realise the potential of technology in bringing a massive level change to all lives. The day is not far when each person will be connected to every other person over a network and be able to communicate in a seamless fashion.
So its important that we understand the difference between a good business idea and a bad business idea, or simply, what makes a business idea good or bad.
In my understanding, the very prediction of a business idea being a success or a failure cannot boil down to a mere consideration of three or four factors like income yield, level of public interest, potential of resources, etc.
Lets look at the below three business scenarios.
There is a village named Kolgaon. Around 55-65% population there is youth in the age group of 20-25. 60% of the youth have not had the opportunity to enroll in a graduate program. Kolgaon lacks in providing basic education amenities. The rise in unemployment rate can be foreseen in the village of Kolgaon. What kind of business model would sustain in a place like Kolgaon?
There is a town named Shagampur, where primary industrial activities revolve around thermal electricity generation (coal-based), and which is the main income source of major proportion of the residents. There is no IT hub in the area, not there is proper network infrastructure. There are educational institutions but almost none that offers graduation level courses. What kind of business model suits a place like Shagampur?
Arankot is a bustling city which has drawn IT crowd in the last 5 years. The city is growing at an unprecedented pace. Real Estate is booming. Many villagers have become rich, owing to the influx of money from multinationals. However, money influx is not uniform over the geographic area of Arankot. 40% of Arankot suffers from water scarcity during summer. Rich are becoming richer. Living cost is increasing at some portions of the city while it is nominal at others. What kind of business model can bring about a balance in a city like Arankot?
Defining a business model requires brainstorming, and a lot of it! One cannot simply create a product/service and roll out in the market. Market study is crucial. Getting to know the wants/needs of customer. Identifying the gaps in the society. These are some of the aspects which need to be considered.