Being an entrepreneur requires open-mindedness and versatility. The purpose of this paper will be to engage in a research process to perform a preliminary market overview of two entrepreneurial solutions by exploring the key factors of customers, product/service, competitors, suppliers, business location, and industry under the respective headings of demographics and segmentation, target market, market need competition, barriers to entry, and regulation. These two business ideas shall come from the ideas log provided, which are business idea 2 and business idea 3 respectively.
- Testing Business Idea 2
This business idea is titled as an escape to paradise.
Demographics and Segmentation
This business idea would appeal to customers of all ages and gender that have an interest in outdoor adventure. Children would have to be under the guidance of a responsible adult when visiting the location, which could either be a lake, mountain, or beach side. The customers who are likely to visit the chosen locations would have to be the middle-aged adults who comprise the working population of the country (Burger, 2010). Even though children can tag along in the trip, chances are that many of them would prefer to visit the locations without them because of the risk of getting lost at night in the wilderness that is yonder. The customers should have an identified interest in cultural exploration so that they can enjoy the complete experience that the trip to the specified locations would have to offer.
The target market for this business idea will be people that have a desire for experience and adventure. Many people in the present day have become used to hotel and restaurant lifestyle and cuisine and few retain the urge to go to camp in outdoor locations. The target market would consist people that have in interest in living in tents, close to nature, under the sky, engage in local sightseeing, water sports, boating, bonfires, hiking, and seeing movies on live screens. These would mainly consist tourists that have had previous exposure to camping activities because the experience provided under this business idea would largely appeal to them (Arca, Eturalde, Nicodemus, & Lucero, 2019). Additionally, the target market would include people that can engage in remote work, such that they do not need to commute to their places of work on a daily basis. This is because the location offers a flexible routine of activities that they can engage in during the day and head back to their homes in the evening.
The market need for this business idea is growing as more and more people meet the fatigue that comes with working long hours on their day-jobs. There is a large number of working Australian that need a break from their home and work lives to get outside and explore the natural world around them (Burger, 2010). This business idea offers an opportunity for any working individual to take a break from work, to unwind while interacting with people from a new culture and a new environment. Since this business idea falls under the travel industry, it will experience growth because there is a growing market need. Additionally, there are travel websites that provides a profile of different travel locations where people give their reviews of their experience with a particular travel location, which helps other travel make decisions about where they would want to visit next (Arca, Eturalde, Nicodemus, & Lucero, 2019). This business idea will be highly profitable when the locations it uses for its getaway activities receive positive ratings on these travel websites like Yelp, Google Maps, and TripAdvisor.
As aforementioned, this business idea is in an industry that is experiencing steady growth in Australia. Therefore, there may be scant competition at first, which offers the right opportunity for the business to expand to consist many locations and activities for the travelers and visitors that would hop on board. However, with time, there will be many competitors in the industry, and other travel organizations may offer competitive prices for better locations and better activities (Burger, 2010). This can significantly affect the progress of the business with time, although there is room for growth during the early stages of the industry.
Barriers to Entry
The barriers to entry that exist in relation to this business idea include need for capital for renting or leasing land areas and advertisement activities, and the need for serene environments that meet the “paradise” status. The business idea requires high advertisement capital to bring attention to the people about the particular travel destinations and the activities they would enjoy during their days off or during their camping trips (Arca, Eturalde, Nicodemus, & Lucero, 2019). These marketing expenses would cover for making advertisements in social media pages, radio commentaries, and television commercials. Furthermore, new entrants need to have the best locations that can attract camping visitors. New entrants would be setting themselves up for a a loss if they target to invite visitors to locations that do not offer any meaningful experiences, which include interaction with nature and new culture.
There are several regulations that this business would need to comply with for its operation. One of the regulations include having a business permit and license to partake in the activities it promises to visitors and the locations it would hire. The business permit can be from the specific state government in which it operates, and this may include permit from the Queensland Government. The second regulation that the business would need to abide by are the public health measures to control the spread of Covid-19 epidemic (Fraser, 2020). The corona virus is infectious and deadly, and the business would need to set up explicit guidelines that visitors would follow when engaging in the activities provided.
- Testing Business Idea 3
This business idea involves having a “one stop home service.” The goal of the business will be to place the scattered services under a single roof for customers’ ease of use and to link service providers with work in a safe and organized environment.
Demographics and Segmentation
This business idea will serve customers of all age and gender. More specifically, the business will serve working individuals with various kinds of manual labor skills, such as carpentry, painting, repairs, installing appliances, plumbing, and electrical technicians (Transdirect, 2019). These working individuals will be the service providers for the business and they are characteristically yet to be organized in any group and are not a part of any organization. The customers can be found in urban, suburban, and rural regions who have smartphones and can use it to access the service.
The target market for this business idea includes the customers who can be found in urban, suburban, and rural regions who have smartphones and can use it to access the service. The target market also includes skilled individuals who will be the service providers to the business service portal from whom a given percentage of money will be charged as a fee for their use of the service to connect with customers.
There is a significant market in need of the service provided by this business idea. In the present day, many people have been trained as specialists in white collar jobs and very few people have skills in menial work that are crucial towards maintaining houses, homesteads, and a fully functional building. The business service portal is necessary towards linking skilled personnel who are service providers to customers who are scattered in different locations. The necessity of the business comes along with the need to increase employment among low skilled workers that are capable of handling jobs such as lawn mowing, plumbing, and cleaning swimming pools among others.
Considering that this business service would become operational in the current day and age, it would have to face a significant amount of competition from already existing businesses in the same industry (Fraser, 2020). Currently, there are smartphone applications such as Amazon, eBay, Kogan, and MyDeal among others.
Barriers to Entry
The barriers to entry in this business includes the government regulations concerning the running of online market places and the nature of businesses that it promotes (Transdirect, 2019). There are legal concerns about the safety of members of the public that the business service would have to consider when connecting service providers with customers. Additionally, the business should guarantee the safety of both the service providers and customers from intrusion by external malicious attackers.
The regulations that this business idea would have to comply with include the Covid-19 public health requirements by the National Health Service to guarantee the safety of both the service providers and the customers when they meet up for work to be done (Fraser, 2020).
For a very long time, the purpose of an entrepreneur has always been to find solutions to at least some of the many problems that face humanity. Entrepreneurs succeed by their ability to pool resources to offer an array of solutions to human problems. Success as an entrepreneur does not really have to depend on the type of industry that one operates in, but on the viability of their entrepreneurial idea. What matter is, by the end of the day, how many people would be knocking at the company’s doorstep to request for the services or products offered.
Arca, E., Eturalde, B., Nicodemus, M., & Lucero, J. (2019). Travel and Tours Management System – Administrative (Legal Management, Document Management, Facility Reservation, Visitor Management). Ascendens Asia Singapore. Journal of Multidisciplinary Research, 1(1). Retrieved from https://ojs.aaresearchindex.com/index.php/aasgbcpjmra/article/view/2172
Burger, L. (2010). Up and away with Agri Travel & Tours. The Dairy Mail, 17(12). Retrieved from https://journals.co.za/doi/abs/10.10520/EJC12320
Fraser, H. (2020). Regulating Online Marketplaces – The Australian Position. Retrieved from https://www.lexology.com/library/detail.aspx?g=b2482b5a-5209-4423-b2b9-04d145174242
Transdirect. (2019). 3 crucial ecommerce laws and restrictions you need to know. Retrieved from https://www.transdirect.com.au/blog/ecommerce-laws-restrictions/