In the first stage of business development which has to do with the “seed” of the idea has some might call it, is the beginning stage of the process. Within this stage the entrepreneur decides exactly what he/she wants to do before any plans are made or even considered.
In starting the business the individual has to try to match his/her passion for their idea with the business they are trying to get off the ground.
For instance before Microsoft became as big as they are, its founders had to examine how much they believed in their idea and even if it didn’t bring them money and fame would they still be willing to put their heart and soul into the business to make it grow? In Microsoft’s case the company did go on to grow very rapidly due to much effort on the part of its leaders.
The second stage is primarily based around a feasibility study in which the entrepreneur decides on the best method and strategy to carry out the goal of growing the business.
Amazon which is an online website did a great job in the beginning stages of developing their business; the business concept that was created allowed for people to purchase books and other products from individuals and businesses around the world with Amazon being the “middle-man.” This concept was loved and appreciated by millions; due to the simplicity their website offered and realistic prices that were offered.
This stage makes an organization realize what it will take to get to their goals, and if their goals are worth going after.
In this stage the entrepreneur has already conducted the feasibility study and realizes if their effort is worth continuing on, and what decisions need to be made.
Next would be to put a business plan together that will detail the financials, research that was completed, goals for the organization, and how it plans to execute. The business plan also provides an opportunity for funding from banks and other financial institutions who are interested in seeing a completed business plan before discussing any investments that are to be made.
Zappos is an excellent example of a company that put together a strong business plan to get the funds they needed to grow their company.
In addition they decided on a great concept for the organization that made them different from other companies and brought rapid growth. The leader is looking for growth opportunities in this stage so developing the business in smaller projects is a good way to accountability and assurance that stages are being completed. Creating the business plan in this stage also provides the entrepreneur with a snap shot to reference back to about the organization.