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?
It has been a few interesting months since Eltje and I decided to set sail in search for the “Chill Haven”. Our journey has taken us deep into the heart of … your guessed it …. data … yes, good old data.
You got to appreciate that we have both just emerged from a long life in the corporate business world and still have this lingering need to find data, to crush it, and let it point us in the “right” direction. At this stage still a bit more left brain 🙂
We have about 12 months to finalise what we want to do and where, and launch the business. Trust me “we have lots to do and too little time” …. ALREADY !!!! But we have already learnt form one of our Island Gurus that “there is plenty of time” …. so no stress :-)))
Allow us to offer you a high level overview of our activities the next months.
- We have been in the process of accumulating data and information to help us better understand a part of the world we have only visited on holidays.
- We have developed an analysis approach to use this information to help prioritise a short list of locations.
- In parallel we have several business concepts that need prioritising and final one selected.
- The above 3 points are based on previous visits to these countries and the data obtained through desk research. Desk research can only tell one so much. The natural next step is then to go to the locations identified with the concepts selected to evaluate the practicalities and then finalise the Real-Win-Worth.
- Thereafter the entire preparation for launch commences.
In the next two posts we would like to share a bit more about how we are going about, using available data to (a) identify the right location for, (b) the winning business concept.
BTW – By the end of this year we will both be fully dedicated to our journey, meaning we will have lots more to share with you, more often … so keep posted.
If you think of something we have overlooked, please do not hesitate to tell us 😉
Ciao for now, go easy.
Many of you have asked what we busy with at the moment.
As you can image, to launch a new venture in a foreign country requires extra research. Currently we have an idea. This idea is very much driven by passion and a vision … two absolutely key ingredients to the eventual success of anything, new of old.
However, we are two practical individuals with extensive business experience, so we know we need to test the viability of this idea. How do we approach this?
We have what is called a Real-Win-Worth analysis. This means, we gather facts and data to verify the:
- reality of the concept. That is, is it realistic?
- our ability to win with this idea. That is, can we pull it through?
- will it deliver the results we want. That is, is it all worth it?
The primary purpose of this process is to prioritise a location and make a final decision on what and where.
Right now we have commenced the long process of gathering data and facts in order to conduct the analysis. This process has two main phases:
- Desk research on macro information to identify potential locations.
- Location visit to verify facts and gather additional in-depth information.
You may be asking, “So what are some the evaluation criteria we will be using?” And I would respond, “That is a brilliant question, and here are our current thought. These are the questions we are asking and looking to find answers”.
- Is there a need, want, or problem to solve ?
- Is there a set of customers able and willing to buy ?
- Is the targeted market SIZE attractive (e.g. tourist numbers, etc)?
- Is the targeted market GROWTH attractive (e.g. economic, visitors etc)?
- Is the targeted market TREND attractive (e.g. accommodation, entertainment, food and beverage trends)?
- Are there any regulatory or legal barriers to entering the market (also as a non citizen)?
- Are there any consumable supply chain issues?
- Do we obtain the right assets to maintain the business (e.g. people, equipment, space, time)?
- Political, economic and social stability (including cultural practices)?
- Can our offer be competitive on value, service, and concept?
- Can we leverage our intangible assets (e.g. knowledge, relationships, strengths)?
- Marketing, promotion or communication needs for success?
- Can our business model win vs. our competition?
- Do we have access to the necessary capabilities/ resources to execute (internal: people, capital, equipment, expertise, etc.)?
- Will we be able to live the lifestyle we desire!?
- What will it cost to succeed?
- Is the profitability adequate?
But I would immediately add that this where we can do with your input. Tell us what you think.
What else should we consider, eliminate or change?