Week 1 Post: Experience of Developing and Running a Business

In this week’s class for Atelier, we learned about Idea Generation and Business Planning. In this topic we focused on Mullins 7 Domain Framework, which explains the different aspects we need to consider in terms of the market domain and the industry domain on a macro and micro level. We also have to consider our team domains and factors, along with the possible risks, success rates, and networks when we build a business. Some analysis tools that the team could use involves PESTLE, SWOT and the Porters 5 forces, where PESTLE allows us to think about the impact of outer factors in businesses, SWOT allows us to think about strengths, weaknesses, opportunities, and threats of a business, and Porter 5 forces allows us to consider the level of competition we have.

Week-1-Friday-diagrams

From my current and previous experiences of developing ideas for a business, it certainly is not easy to create one that can meet the guidelines. There are many factors to consider when creating a business. When one is given certain limitations or guidelines, the ideas become restricted. However, it is because the ideas become restricted that students are able to think farther outside the box, and combine certain ideas to make a new one that will follow the required guidelines. It is the matter of actually taking a further step to generate these ideas. Another difficulty when generating ideas is figuring out an idea for a target audience. In this particular assignment, my group focused primarily on other OCAD students, making it slightly harder on our part because we believed that OCAD students themselves could make anything that we create. If we were doing something based on Valentines Day, students may think that it would have been more meaningful if they created something themselves for their lovers. We needed to generate an idea that we have not yet seen in school, and that students are willing to pay money for.

Week-1-Friday-valentines

On a business perspective, a good idea is generated when a different element is presented in the product that makes it unique in the market. The differentiation of the idea is essential in business. People enjoy seeing items they did not think of, cannot create themselves, or simply unique and worth the price. When all of these aspects are met, and sold to the right target audience, the business would become more successful. It is also important to have market research when creating a business because businesses want to know who the competitors are, and how their products are successful. Market research also allows businesses to comprehend possible business strategies and marketing themes that will get their product or service to sell. Market research tells businesses their market needs, market size, and possible competition, which helps the business grow. If a business knows of their competition, the business is able to go back and plan out possible ways to make their sales even more successful than the competitors. The key to a competitive business is to stay on top of the game. Knowing the competition will allow the business to strategically alter any marketing strategies, strengthen factors that are considered as weaknesses, and gain advantages in the product.

Screen Shot 2015-01-11 at 11.26.30 PM

There is an organization called Keypers Cove that make different types of key pendants and sells them on Etsy. They are a very successful growing business because they have a strong marketing campaign. A few years ago, they started out displaying their works on DeviantArt, and advertising their Etsy shop for every new key they have created. They eventually picked up marketing on Facebook, which got them more followers. Since every key they make is hand made, there is a different style in each product; thus the uniqueness allowed them to price their pendants at a higher price. They also started a weekly draw to give out one key of the winner’s choice that was opened to anyone, even if they are not customers. This lead people to browse their shop more, potentially getting even more followers and buyers. Today, Keypers Cove has over 10,000 likes on Facebook alone. This strategy is effective because they took advantage of social media to help them get their name our first. By redirecting people to their store, they are able to advertise more products. Since these pendants are well made, these are potential gift ideas all year round. The source is also open internationally; meaning people all over the world are able to purchase their items. The target audience, although targeted more for girls and women, are large enough for them to become a very successful and unique business.

Screen Shot 2015-01-11 at 11.28.19 PM