NOTICE: This website is no longer updated, as the Decade of Difference initiative has reached its sunset date. Relevant information has been transferred to the main HCOE site.

Business Concept Question Video Library

For each of the 13 Business Concept Questions, we will post one or more corresponding videos to help explain the reasoning behind the question. As with learning anything new, these concepts may seem foreign but are the building blocks of any business. You are learning real-world business concepts that every business must consider no matter how large or small. Replay them as often as you need to.

To have the best chance in preparing a successful 13 Business Concept Question answer set, watch these videos and make every effort to attend one workshop for all three topics.
 

Videos

Jump to Question: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13

Question 1 Theme: Minimal Viable Concept

You have an idea that needs to transform into an actual business start-up in Phase 2. These videos will help explain how to keep the first few versions of your idea as simple as possible, knowing that it will evolve over time.

Question #1: Are you currently providing this product or service? Explain the most basic version of your start-up idea (product, service or invention). How developed is your idea?

 

Question 2 Theme: Empathy and Design Thinking

Think about the user, your customer, and what is important to them? You use that thinking premise to design the early version of your product or service.

Question #2: What is the problem you are want to solve, or need you want to meet, and why?

 

Question 3 Theme: Research and Competitive Advantage

Learn the universe your idea is in to see what others are doing in the marketplace. This understanding can help develop your product (service) to be unique.

Question #3: Describe the other products (or services) that compete with what you want to do. What makes your product or invention different or better?

 

Question 4 Theme: Unique Value Proposition 

This is the basics of branding, identifying powerful words (adjectives) that describe the unique selling advantage of your product or service. Once you’ve listed all the adjectives associated with your product/service select 3-7 words that are the most powerful for you. Now is the time to consider any name changes. Look at the hand-outs: Verbal Design and Branding.

Question #4: Why would a potential customer be motivated to purchase your product or service?

 

Question 5 Theme: Understanding the Marketplace and Distribution Patterns

If you sell directly to your customer what is that process? Online or at selling events like farmers markets or through social media? There are lots of options these days. You may sell through a middle business and then they sell to the business with the customers, like a store. Consider the revenue or expenses involved to know what’s best for you.

Question #5: Explain how your product or service will get to your customers. Explain if you will sell directly to them or indirectly through other retailers by distributors or wholesalers? Explain where you will be conducting your business, i.e. from home or another location?

 

Question 6 Theme: Key Activities

To take your business idea from its current stage to the next, list all the things that will be needed. After you have made that list, prioritize them so that you have a cascade of important tasks. Focus on and list the top six most important things.

Question #6: List up to six critical tasks that are needed to start-up and why? What will you need to do and what will you need to know?

 

Question 7 Theme: Knowing your Customer

Create a persona or “avatar” of the person or groups of people who will be most likely to purchase from you. Understand this fictional character in multiple ways to determine how to communicate with them in a way that is familiar to them. Doing this exercise demonstrates empathy and can help establish a connection with your customer as well as an ability to apply this exercise to other customers.

Question #7: The largest share of your sales will come from certain types of people. Think about the type of person or groups of people that would be your typical customer. Describe the “avatar (s)” of this person, or groups of people. Describe who they are, what they look like, what they do, what they like, how they get their information, level of education, what they do for fun and other personal characteristics. Describe them as you would your friend.

 

Question 8 Theme: Market Potential

Learn about the industry your product or service is in. Example: your sandal is in the footwear industry; your cafe is in the restaurant industry. Look at industry association website or trade association magazines to learn about growth patterns or emerging trends. You may find some interesting ideas to consider. Also look at your competition in this county. You are trying to determine if your business idea has potential to be successful.

Question #8: Conduct research on the interest (demand) for your product (or service) locally and online. Based on the population in your market area, estimate the potential number of customers who may be interested in making a purchase.

 

Question 9 Theme: Reaching Your Customer

Now that you understand your customer and created an “avatar”, how would they access information to learn about you? What would motivate them to buy? Can certain words trigger action to purchase? Does it involve social media or digital marketing? Remember, you want to promote yourself as effectively and as inexpensively as possible.

Question #9: What is your plan to promote and convince your customer to buy your product or service?

 

Question 10 Theme: Sources of Financing and Revenue

Think about what you need in materials and need to do to create your minimum viable concept. What will you need? You may have some items but may need things you don't have. What would those things cost and do you have idea of where you would get the money to purchase or rent? Remember, keep it simple!

Question #10: How much money do you need to operate? Can you self-fund your start-up? If not, why would someone invest in your idea? If you need a loan how would you get that kind of financing?

 

Question 11 Theme: Projecting Start Up or Prototype Development Costs

Thought bubble: Every start-up has to decide what is needed to begin. This includes those things that will be used to start and operate (or develop their prototype) as well as capital/money needed to purchase those things you’ll use. Things you’ll use could include: equipment, supplies, packaging, vehicle, remodeling a space, etc. You always want to start as inexpensively as you possibly can and purchase items over time as your income allows. You want to avoid debt. Decide how much money you would like to win and list it. Things that you have that you will use have a value and need to be listed under capital/income. Remember, keep it simple!

Question #11: Assume you are starting with nothing, list the equipment you’ll need, the on-going supplies and monthly expenses you’ll need to operate in the form provided. Based on your idea, your information will probably vary from the sample shown.

 

Question 12 Theme: Basic Start-up Income Statement

Whether it is your personal budget or your business, it is critical to review your finances. Using a spreadsheet will help you organize your revenue (or income) categories as well as your costs (or expenses). A business will track their expenses regularly but it’s important to review a certain period of financial activities to see if your business in making, not losing, money. An Income Statement can be helpful for a start-up business to prioritize what is most important to cut expenses and generate more income. Remember, keep it simple!

Question #12: Can your idea make money? To figure this important step out, fill out your start-up information in the blank Income Statement. Show your projected income and expenses for a specified period of time, like week, month or year.

 

Question 13 Theme: Values / Social Component

One of the great things about starting, owning and operating your own business is the ability to include your values in what you do. Yes, business must make a profit to survive and thrive but there is also a sustainable way to include people, the environment or addressing social problems. Do you have values that you would like to bring to your start-up?

Question #13: How will your values affect how you operate your business and interact with your community?

 

General Questions? Call (707) 445-7563 or e-mail kbrooks@hcoe.org.

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