Develop An Innovative Business Idea Essay.

The Need Analysis to Identify the Market Gap

Discuss about the Develop a Proper Innovative Business Idea.

One of the most important things to run the business in a good manner is the entrepreneurship. The modern business environment is very much competitive in almost every industry. The competition is growing among all the companies to get the competitive advantage over one another. As a result of the growing competition, the customers prefer the businesses that will give them the best facilities and offers. This is why the businesses must be able to provide the business organizations the best offers for the customers. In this mode of competition, it will also be important to bring up an innovative idea. The innovative business ideas will help the organizations to provide the customers with the best opportunities for choosing the best offers. The business managers should be able to know about the desires of the customers in the best ways. So, the entrepreneurs will look to set up the business models for capturing the business (Armstrong et al., 2015). The startup business owners will definitely look to get the best benefits out of their businesses. In this business report, the aim will be to justify the proposed new business idea, preparation of the business model for the idea, discussing the feasibility about the business idea, judging the recommendation and summarizing the entire thing. The proposed new business idea for this paper will be providing the customers with the proper guidance that relates to their equity trading portfolios (Drucker, 2014).

One of the major things in this section is the identification of the market gap to launch this kind of new business. The need for this kind of business has been increasing. The market gap is generally the basis for launching a new business. It has been studies and found that many people have great interest in investing and trading in the equity market. The equity market has been identified as the most important medium between the sellers and buyers for the shares of the organizations. These shares of the organizations are generally on the Australian Exchanges. Many individual people or the corporate groups have shown the interest in selling or buying these shares effectively (De Mooij, 2013) They buy and sell these ideas based upon the analysis of their personality. The business that will be discussed in this section will provide the customers with the consultation services. The customers will be guided by the business owners on which shares they should invest. Along with this, the startup business owners will also look to consult with the customers about how many shares they should buy and for how much time they should invest in it (Drucker, 2014).

Company Name and Overview

It has also been seen that many people suffer great losses at the time of trading. The owners should go through the thorough analysis of the shares and judging the appetite of the people for taking the risks (Malhotra & Peterson, 2014). Most of the people only take interest in the equity after reading the important news. The understanding about investing in the shares requires the proper analysis of the background of the companies, economic and industrial trends. The purpose of this new business will be to discuss about the customer risks and make the proper designs for the portfolios for profit (De Mooij, 2013)

The name of the company to begin this business is Braithwaite Finance Limited. This company has been launched in the year 2016 and they are planning to provide the customers with the proper guidance for the equity trading portfolios. They will need to make a proper customer target market based on the desires of the customers. They have planned to stay very active on the social media to connect with the customers.

It is very important to discuss about the target market for this business. The business owners will look to meet the desires of the customers by providing them all the services they need (Armstrong et al., 2015). This equity consultancy business will look to target the people who invest in the equity market very frequently. The people who possess a current portfolio or potential portfolio around AUD 6000 in the equity market can be considered as the target audience for this business. The business will be carried out all over in Australia but the headquarters of this business will be located in Adelaide. The business owners will specifically target the .lower income segments of the society because they want to guide the people with the penny stocks so they can get high returns including the high risks effectively. The investments would be made at a low cost (Kirzner, 2015). 

The product differentiation strategy is a very important strategy by which the organizations can gain the competitive advantage over one another. Some people believe in the concept equity trading is very expensive. This conception can be broken by the company as they aim at the lower income groups (Armstrong et al., 2015). The lower income groups will be able to invest in the tight penny stocks. This can be categorized by low investment, high business risks and high returns on investment. The smaller forms have the penny stocks. The organizations in this business would like to recruit such experts who have a wide range of experience in the trading industry (Malhotra & Peterson, 2014). The organizations will provide them with the best tools of information technology and statistics. This will help them to conduct a proper research to provide a detailed analysis (Schaper et al., 2014).

Target Market

The business model is a very important thing to be discussed for highlighting the roles and interconnections between the nine building blocks. The business should aim at the customers by going through a proper research work and sales activities (De Mooij, 2013). This will be effective for doing the marketing including the public relations, promotional activities and cold calls. Once they get the customers with an effective number, they will need to appoint a relationship manager who could manage the current portfolio for the customers and design the potential portfolio as well (Area, 2014).  He would also be responsible for providing the customers with the everyday guidance about which stocks they should invest in. It is very important that the clients should be able to reach the relationship managers (Drucker, 2014).  He would update the portfolio and send it to the customers.

In this model, there will be two revenue models to be adopted (Burns, 2016).  The business operators can give the customers option for paying the advance fees that will be around the 25% of their current portfolio (Rackley, 2015).  Another process would be to pay around 5-10% of their portfolio and share the 35% profits at the end of six months. The business managers will make the clients sign the annual contracts based on which they can earn the profits. The volatility will always be there and it will take some time to get the profits. The consultancy will show the profits to the clients.

Value proposition for the proposed business

In this section, the value proposition for this business in equity industry will be discussed properly. The relationship managers will have to make sure if all the investments of the shareholders can be turned into benefits. The business partners must have the accountability for all the financial steps that they will take. The proper solutions for all the queries of the customers should be provided by the organization. The benefits of the investments should always be clarified to the investors firmly. The managers should offer the target market with best investments opportunities. This would highly benefits to the customers. There might be some risks in this business but the amount of the return of investment is very high as well. They might opt to work with the niche target market. The relationship managers should held up some meetings with the customers to make them understand the importance of the investment opportunities. The value for this business can only be created when the investors will get rid of the fear of the losses through the risks and begin to see the bright side of the picture. Thus they can highly achieve the trust of the target customers.

Product Differentiation Strategy

The critical success factors are important for this business to gain the trust of the clients. The risks are very high so the business managers should manage the risks properly. These factors are very significant for gaining the profits. The success factors are-

• Making long term relationships with the clients by retaining almost 80% of them
• Break even within 2.5 years of being set up (Amit & Zott, 2012).
• The growth rate of the organizations should be tracked. The advice rate should be around 75% accurate.

The knowledge based resources should be the basic resources for the equity consultancy business. The economic feasibility of the business is the following:-

Forecast revenue

Thus, the business will be able to reach the breakeven point in tge second year of their running. Thus the managers have an excellent chance to increase the interest of the customers.

Product

• The relationship manager should be responsible enough to provide the recommendations regularly to clients.
• The customer service management should be very effective (Gordon, 2012).
• Updating the portfolio regularly and managing the portfolio properly.
• The industry analysis should be provided properly as well (Vismara, 2016).

Price

The price penetration strategy should be adopted by the business. This penetration pricing strategy offers their businesses to fix the price of their services much lower in rate than their rivals in the industry. Thus they can get a huge customer base (Gordon, 2012).

Place

The head office of the business would be located at Adelaide but the clients should be targeted from all over the country (Gordon, 2012). They would target at the clients by cold calls, promotional activities and help of the sales team.

Promotion

Digital marketing strategy

In this way, their services would be promoted through several digital platforms (Tuten & Solomon, 2017).  The brand reputation and awareness could be increased through the effects of digital marketing. They can promote their services through the social media platforms (Ray, 2013).  

Advertising through the financial news channels

All the people who invest in the equity markets always keep an eye on the financial news all over the world. If the business advertises about their works on the financial news, this will be effective for them to make the promotion for the brand.

Print media advertisements

The print media promotions are very effective tools for promoting the brands. The print media can send the idea of this business to a large number.

With the progress of this assignment, we had worked with the group of three people. All of us thought about this for a long time and finally came up with this idea. We communicated with each other openly and had the utmost transparency in conveying our messages. We all wanted to find the resolution for our conflicts in an honest way. All the members in the group had the awareness about our expert capabilities. Thus we all collaborated properly to make this project a success.

Proposed Business Model

I had been successful when I went to collaborate with all our members when we went to attend the various workshops. We always wanted to indulge in participating with the entire group in a fruitful way. This method working together as a group always enriched our mutual understanding and thus we were able to sort iut the differences that came between us. The open communication process made us believe in the process properly. We wanted to communicate with each other in an honest way that could settle the differences between us very effectively indeed. Personally saying, I had a great time with all the team members and I had learned a lot. This has added to my growth opportunities as an entrepreneur.

It needs huge patience when we have to work under a team effectively. We were very much motivated and took all the initiatives to eradicate all the issues. The initiatives helped us to grow more. Thus we could mitigate all the risks we all had faced. The participation of taking part in the workshops had been very much effective indeed. These workshops had given us with the needed guidance and assistance for our needed growth.

Conclusion

It is the entrepreneurship that helps the economy to grow from all the perspectives within a country. If the level of entrepreneurship has to grow high, the organizations must be able to contribute effectively as well. They have to focus consistently on the innovation process. In this report, a new business idea has been presented of equity portfolio. This business aims at providing the proper guidance for customers for investing in penny stocks. These penny stocks generally are the shares of the new organizations. These stocks can ensure the high return on investments including the high risks. The unique selling point in this business is to be an expert in the penny stocks. The business will offer several opportunities for the making the customers opportunities very much effective. The business idea might reach the breakeven point within two years of establishment. The brand value of this business is needed to be increased.Strength of the business idea

References and Bibliography

Amit, R., & Zott, C. (2012). Creating value through business model innovation.  MIT Sloan Management Review, 53(3), 41.

Area, M. C. (2014). Return on Investment.

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.

Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.

Chandra, P. (2017). Investment analysis and portfolio management. McGraw-Hill Education.

De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.

Drucker, P. (2014). Innovation and entrepreneurship. Routledge.

Gordon, R. (2012). Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ), 20(2), 122-126.

Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago press.

Malhotra, N. K., & Peterson, M. (2014). Basic marketing research. Pearson.

Michalski, G. (2013). Portfolio management approach in trade credit decision making. arXiv preprint arXiv:1301.3823.

Rackley, J. (2015). Return on Investment. In Marketing Analytics Roadmap (pp. 71-85). Apress, Berkeley, CA.

Ray Gehani, R. (2013). Innovative strategic leader transforming from a low-cost strategy to product differentiation strategy. Journal of  technology management & innovation, 8(2), 144-155.

Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and small business.

Tuten, T. L., & Solomon, M. R. (2017). Social media marketing. Sage.

Vismara, S. (2016). Equity retention and social network theory in equity crowdfunding. Small Business Economics, 46(4), 579-590.