A business idea can emerge, for instance, from a new innovative idea for a product or service, the entrepreneur’s personal professional or special skills, or an opportunity presented from outside.
A successful business idea does not need to be entirely new and unique. It can be based on common, familiar services – for instance, hairdressing services, household work and clothing retailers are in constant demand in towns throughout Finland. Success is influenced by the local competitive environment and differentiation within it.
You can also use innovation to bring a competitive edge to a familiar type of service: even if your town has a large number of hairdressing salons, a new company offering not only haircuts but nail enhancements, chocolate facials and Indian head massage may well succeed. Or a salon specialising in organic products.
Some business ideas may be new to Finland, even if foreign examples exist. A bold entrepreneur may well test whether an idea that is successful abroad can gain a foothold in our markets. Correspondingly, you can determine whether a product or service enjoying success in a certain part of Finland could also succeed elsewhere. The key to success is the ability to predict consumer behaviour and the general atmosphere’s receptiveness to a new idea.
Regardless of whether your business idea is based on new or traditional service activity, experienced business advisors can offer support in assessing and developing your business idea.
The business concept describes how the company intends to engage in business in accordance with the business idea. Key issues of a business concept include:
What goods or services does the company sell?
Who are the potential buyers of these products (goods and services)?
How will such customers be reached?
You can assure yourself of the competitiveness of the business with the help of the following questions:
Why would customers buy the products or services of this particular company rather than competing products?
How might potential customers be informed of the particular products you are offering?
What kind of price would customers be prepared to pay?
Can the company make products at a cost level that makes the business profitable?
When developing the company’s business concept, you must refine your business idea into innovative product activity, analyse the competitive environment in a certain line of business or the local area, and calculate the financial terms on which the business might be profitable. You should take advantage of public advisory services when planning your business activity.