In the previous post we shared how we are going about finding the right spot for PeanieSutra. When we have a location, we need a business concept. After all, the right location without a business ain’t gonna give us the lifestyle we are looking for.
In this post we will describe the approach we are using to hone in on the right concept. Our business concepts include:
- A Lounge Bar
- A Fitness and Water Sport Centre
- A Boutique Hotel / Resort
- Write Travel Reports (Articles and Photography)
- A combination of any of the above
To select the final business concept, we are undertaking two sequential analysis phases. The first to prioritise the concept, and the second to use market data to select the final concept.
To prioritise the business concepts, we attempt to score each concept based on our and its “capability” by using four criteria. These are:
- Our Own Competencies to succeed
- The Investment required: initial and ongoing
- The Life Cycle of the concept
- Can it provide the Life Style we require?
To prioritise the concept based on these criteria we adopt a similar approach as with identifying the right location. We:
- Weight each of the 9 criteria. That is, not all criteria are equal, so a 100 points is distributed across the 9 criteria.
- Score each concept against each criteria on a scale of 1-10, where 10 = highest.
- Give a confidence level for the quality of the estimation given to each criteria. 100 = 100% confident that the data is correct.
- The number for the three points are multiplied (1 x 2 x 3 = index score) and tallied up.
The concept with the higher scores are taken through the the final phase to select the best one
This we do by determining the “attractiveness” of the top business concepts. To do so, we gather data and information on the following two criteria by selected location.
- Size of the Market Demand
- Competitive Activity
- Our Competitive Advantage (value proposition)
Once the facts are ascertained, we follow much the same approach as with selecting a location and prioritising concept. That is, we weight the selection criteria, rate our confidence on the data gathered, and score each concept by location against the criteria.
Once we complete the analysis we will post the results.
Tell us … So what do you think of our approach published in this and the previous posts on how we are going about to identify a location and final business concept?