- Choose The Business Model
Imagine that you are a young, highly dedicated parent, and you are interested in running your own business. You decided to marry the two passions and together with a few friends, set a company in the space of childcare. Below, you can find several business ideas. Please go through the option in a group. Assess the business potential of these options:
➣ What’s the market size? How many people might become your potential clients?
➣ How much would the client be willing to pay for this product?
➣ What are the costs you need to bear?
➣ Is there much competition in the market?
Of course, you can google for information to answer these questions!
A) Starting package for young parents, with detailed instruction on how to handle a newborn.
Most fresh parents feel helpless about how to handle their first baby, and they spend a fortune on infant accessories. You want to allow parents to buy an all-in-one package containing all the necessary equipment and accessories accompanied by a funny guidebook for how to handle a baby – in multiple price ranges.
B) Online tax consultancy services for fresh parents.
In most countries, parents can enjoy many tax reductions and other extra public benefits such as discounts on public transportation, entries for museums, art galleries, theaters, etc. Most parents don’t know about all the opportunities as the tax law is complicated and non-transparent, and there is no centralized source of information about other benefits. You aim to build an app that helps fresh parents to find out about all the benefits they can enjoy, accompanied by 1-1 consulting services.
C) A new app that puts babies to sleep or calms them down when they cry.
Today, a lot is known about human sleep, and about how to induce the feeling of dizziness with sounds. You want to develop an app that helps parents of particularly nasty infants who cry all night long.
D) Online consultancy and support community for first-time parents. First-time parents often feel helpless and overwhelmed. You want to create a platform where fresh parents can find support from other parents and specialists.
Do you have your own ideas for a profitable business in this space?
2. Choose The Structure For The Company
Which legal structure for your company should you choose? What is the range of capital you need at the start? Do you need a seed investment to run your business?
3. Choose the Marketing Channel
What marketing channels would you choose to promote your business? Would that be:
A) Online marketing (Facebook ads, Google ads, SEO),
B) Social media and online communities (building the following of Twitter, Facebook, and LinkedIn, posting on Reddit and Medium),
C) Direct marketing (approaching potential clients in person),
D) Building the brand through public appearances at conferences and on the media,
E) Other marketing channels?
4. What Roles Would You Like To Play on the Team? Who Will Be The Best:
A) Chief Executive Officer (CEO)?
CEO represents the company. CEO is the most senior manager in the company and is held responsible for the company’s vision and long term plans.
CEO also has an overview of the whole company and is responsible for improving Key Performance Indicators (KPIs) such as the profits in the company, the number of users, or the public image/trust. The authority and the area of influence of the CEO varies between companies and is regulated by the Board of Directors. The CEO can be laid off by the Board of Directors.
B) Chief Technical Officer (CTO)?
CTO is a senior manager in a company focused on the scientific and technological issues within the company. Or in other words, the chief hacker in the company. CTO usually manages their own team of developers/engineers/laboratory workers.
C) Chief Marketing Officer (CMO)?
CMO is a senior manager responsible for controlling all the marketing activities within the company. CMO usually manages the company’s marketing and sales team.
D) Chief Operations Officer (COO)?
COO handles a company’s internal affairs. COO focuses on executing the company’s business plan according to the established business model. COO also has an impact on the structure of the company and is responsible for its functionality.
E) Chief Financial Officer (CFO)?
CFO is a senior executive responsible for managing the finances of the company: controlling and optimizing the financials, making financial projections and plans.
5. Which Part of This Task Was The Hardest And Why?