Essay Sample on Understanding the Business Idea

Introduction

In understanding the business idea, it is essential to explain what it entails, its uniqueness, the target market, value proposition, customers, how to reach the clients, what they want and how the entrepreneur knows this and ways in which the business provides customer wants. The business idea that I would like to start is a music studio to teach music to interested students. I will start as a private lesson instructor to teach the violin, cello, and viola among other musical instruments. Music is one thing that I like and have been trained. I hold a Bachelors degree in music as well as a Masters degree in viola performance. I am a certified teacher to teach music for high school and college students and worked in the field for about eight years.

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The business idea for starting a music studio is unique because I will be concentrating on becoming a private lesson instructor. Music is a profession out there like others such as dance and sports. It is a field with endless possibilities. I enjoy teaching and practicing music and am guaranteed that other people out there will like the idea of joining me in the career. As a private lesson instructor, I will be dealing with one student for the lesson at a time. Instead of handling a crowd as in many cases, the learning will be individualized. I will be able to work and train students online and travel to local areas where I can find more clients. Therefore, there is high flexibility with the business idea.

When it comes to learning music, there are no exceptions to a particular market for the services. There are many people out there interested in learning music including music artists, upcoming artists, corporate organizations also have employees who want to learn music for entertainment purposes, schools have students who are willing to attend extra classes to refine their music skills, and families have kids interested in music. People from different levels in all walks of life fit within the target market. All these segments require a music studio to learn the necessary skills. The business idea suits their needs and will address the market demand for personalized training in music. Therefore, the target market is broad enough to provide the business idea with as many customers as possible.

The value proposition for the business idea is 'the smartest way to learn music, just sign up and train with an expert.' The value proposition summarizes the intention, goal, and purpose of the new business idea. By reading the statement, customers can get all the information about the business idea and the service to be provided. A value proposition statement serves the purpose of convincing potential consumers regarding a particular product or service in the market on the value it will add or the problem it will solve when compared to other similar products or services on offer (Lake, 2018). Through this value proposition, students will be convinced of the benefits they will gain by signing up with the private training music lessons with a private lesson instructor.

Our customers are students doing music lessons and any other individual willing to learn music as a career or for entertainment purposes. Students will be from different high schools, colleges, and universities. Individual customers will be from organizations and families. The choice of students and individuals as the customers is informed by the fact that music is a career like any other. Many people are making money out of music and students who may want to refine their music skills after classes and during holidays will be at my service. Parents with talented kids at home will be able to get the services within the locality or online for those in a far distance.

There are different ways through which I can reach customers for the proposed entrepreneurial idea including signing up with marketing websites such as the takelessons.com that provide private tutors with a platform to reach students and new clients in any field. Posters will also be made and distributed to the locals and inform them of the idea through word of mouth. Further, a webpage will be created on the internet as well as on social media were testimonials, and a demonstration of the service will be shared to reach as many customers as possible. The webpage will also be optimized to make it searchable on Google and other internet platforms by designing using keywords, catchy words, and phrases that customers are likely to search on the internet. Therefore, the music studio webpage will get exposure on many online areas through search engine optimization.

The targeted customers want a flexible, experienced music instructor who is available when they need to learn. From the description of the customer's needs, it is evident that they need training in their free time after school, work or when suggested by parents. Since the business idea is a music studio for a private lesson instructor, the customers are looking for a trainer who will meet their personalized training needs. Music students at the college, university, and high school will be requiring a private lesson instructor to refine their skills in areas that they did not understand well while in class. Employed people will be looking for a music instructor who will train them on the particular music or instruments that they are interested in learning. Parents will also want to enroll their children in a private lesson instructor who will train them on specific music and musical instrument that interests their kids. Therefore, the customers want a personalized service that meets their particular needs, flexible and available when they need it.

The business will provide the customer wants by offering in-person and online music lessons to those who will enroll with the program. All learners will be guided based on their area of interest in music and at their time of availability as scheduled with the private lesson instructor. All learners will sign up with the service, provide their details and time of training, the individual instructor will create a virtual learning platform for those who are far and meet in-person for the local customers. The music studio will have equipment for teaching and use by students, an updated calendar for the lessons with every student allocated time-based on their availability.

Entrepreneurial Themes Related to the Business Venture

Eckhardt and Shane (2003) define entrepreneurial opportunity as the situation with which people introduce new goods, services, and raw materials to the market. It is also the essence of organizing approaches to adding products and services in the market through new means and ends. Various themes relate to different business ideas that individuals identify for introducing into the market. For this essay, the two themes connect to the proposed entrepreneurial idea for the business venture are opportunity recognition and opportunity discovery. These two themes explain how the entrepreneur came about the proposed idea and the gap intended to be filled.

Opportunity Recognition

Opportunity recognition entails the ability of an entrepreneur to realize the business idea in economic activity (Sasso, 2013). According to Baron (2004), entrepreneurs can recognize a business idea in his or her background influenced by the environment. It is an essential aspect of the entrepreneurial process as the individual can recognize business opportunities and pursue through value creation (Hills, Hansen, Hultman, 2005). The theme of opportunity recognition relates to the proposed business venture because the individual has recognized an entrepreneurial opportunity in the music video business as a private lesson instructor. Based on the discovery approach, entrepreneurial opportunities do exist irrespective of a person's perception, and discovery is the only way through which an entrepreneur will recognize them (Shane, 2003). Therefore, the business idea of a music studio to offer private lesson instructor services to the targeted customers relates to opportunity recognition since the entrepreneur links the venture to the increasing market demand. The economic factors in the business environment are independent of the action of the entrepreneur. There are market changes in the way people are learning today, and the new business idea will be responding to these market demands where clients want personalized learning with a private tutor.

Based on the enactment approach, entrepreneurs subjectively create opportunities by imagining and designing the future using the available resources and responding to the needs of the environment (Baker & Nelson, 2005). The new business venture is related to the theme of opportunity recognition since the entrepreneur has identified the need for providing private lesson instructor services in the field of music. The enactment approach of opportunity recognition supports the business idea in that the individual has taken the necessary steps in gathering the needed information about the business and evaluated the entrepreneurial discovery. Entrepreneurs usually think differently than other people and see areas of business opportunities that can be established in profitable business ventures (Baron, 1998). Therefore, the business venture will be filling a gap in service delivery where other approaches to lesson instructors do not meet the needs of students requiring personalized and private training in music.

Opportunity Discovery

Opportunity discovery entails the ability of the entrepreneur to discover business opportunities arising from market disequilibria (Hang, Garnsey & Ruan, 2013). An alert business person will discuss these opportunities and venture into doing business based on the discovered idea. Opportunity discovery is an entrepreneurial theme that relates the proposed business venture as its execution requires new marketing, competitive development of products, social networks, and applying the best approach to achieving competitive advantage in the market among other aspects (Rezvani, Ghamari, & Ghahramani, 2013).

Based on the business idea of a music studio to offer private lesson instructions to customers, the business venture relates to opportunity discovery. The entrepreneur will require doing new marketing for the new venture, seek ways of achieving a large customer base and ensure the private lesson instructor services are developed to compete effectively in the market. Opportunity discovery is when an entrepreneur realizes the need to differentiate the products to gain a competitive advantage (Shane, 2003). The proposed business venture will be offering differentiated services to the targeted customers. In this case, learning by getting instructions from a private instructor is the key to differentiating the learning experience of the music learners. Social networks are required in marketing the new venture and the services that will be offered by the entrepreneur. Therefore, opportunity discovery explains the entrepreneurial process of realizing a business idea and working towards its establishment (Spinelli & Adams, 2015). The person has to provide the raw materials, gather data on the available market and best ways of reaching the customers.

The theme of opportunity discovery relates to the proposed business venture as entrepreneurship by itself is an act of discovering, evaluating and exploiting the identified chances to provide new goods and services in the market (Davidsson, 2004). The entrepreneur will be focused on organizing the market in a way that was not previously existed. The new business venture is a valuable opportunity that fills...