Viable Business Idea

This article presents a viable business idea of mechanizing the manufacture of charcoal briquettes from organic waste products such as saw dust, banana peelings, among others. It discusses the market gap, benefits generated by the idea, feasibility evaluation, proposed business model, and critical success factors.

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VIABLE BUSINESS IDEA
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VIABLE BUSINESS IDEA
Table of Contents
Executive summary....................................................................................................................2
Market gap.................................................................................................................................2
Benefits generated by the idea...................................................................................................2
Feasibility evaluation.................................................................................................................3
Service feasibility...................................................................................................................3
Target market feasibility.........................................................................................................3
Organizational feasibility.......................................................................................................3
Financial feasibility................................................................................................................3
The proposed business model....................................................................................................4
Critical success factors...............................................................................................................4
Conclusion..................................................................................................................................4
1. Appendix.............................................................................................................................5
The proposed business model canvas.....................................................................................5

VIABLE BUSINESS IDEA
Executive summary
In this article, we are going to come up with a business idea which is to be implemented in
the market with the expectation that it will succeed. In the zeal of ensuring that the idea is
workable and that it maneuvers in the market, considerations such as a gap in the market that
ought to be filled and benefits associated with the business idea were considered. After
brainstorming accompanied by thorough consideration of the necessary factors, we landed
into mechanizing the manufacture of charcoal briquettes from organic waste products such as
saw dust, banana peelings, among others. The main reason for choosing this business is
because it is not capital intensive, it produces cheap and high quality alternative fuel as well
as acting as an environmental cleaner. Some of the recommendations in this paper are
division of labor and specialization and employee motivation to improve performance and
consequently productivity.

VIABLE BUSINESS IDEA
Introduction
In the modern business environment, it is important to appreciate the fact that there are many
unseized business opportunities that could be turned into million earning premises. That calls
for brainstorming and opening business eyes to see and perceive what is happening around
the world and what is capable of being turned into a business idea. With the contemporary
changing world, business ideas sprout daily, giving fresh chances to contemporary investors
to bring together factors of production and seize the opportunities. The change in people’s
way of life, introduction of new gadgets, changing tastes and preferences of consumers as
well as change in price of some consumer goods gives a clue to an entrepreneur on a potential
business opportunity. Seizing the opportunity is usually accompanied by a thorough research
to ensure that if the opportunity is turned to a business it will record a positive impact to its
owner and the society it is established in. As a result, it is very critical to ensure that the
opportunity to be turned into a business fills an entrepreneurial gap that has been left out
open. In consideration of such factors, mechanization of charcoal production using organic
was arrived at as a viable business opportunity.
Market gap
Most of the households, if not all, use fuel daily, whether paraffin, wooden charcoal, cooking
gas etc. This fact provides a feasible business idea for an entrepreneur who is capable of
investing in the industry. A research carried out by (Clawi, 2018) on the nature of fuel
consumption by households shows that most of the fuels used are non-renewable and thus
capable of getting finished and or having hazardous effect to the environment. Another
research as carried out by (Martins, 2018) on the consumption level and the amount of
income spend on fuels for households shows that consumers are forced by circumstances to
unwillingly allocate a big budget to fuels for the purpose of cooking and heating in homes. It
is therefore due to this reason, that we saw it necessary to come up with a cheap alternative

VIABLE BUSINESS IDEA
source of fuel to replace the existing costly and hazardous fuel. However, this idea has been
bought by a few individuals as discussed in (Kater, 2018), they have not gotten into it with
the mighty it deserves. The business aims at mechanizing the production of charcoal
briquettes from organic waste such as saw dust, certain leaves, and banana peelings among
other organic waste materials.
Benefits generated by the idea
Large scale production is usually associated with high return on investment if handle wisely.
This business will see the owner earn a considerable amount of income that will see their
status improve and start getting ranked among the world’s richest individuals. A research
done by (Katimba, 2018) and (Rasam, 2018) says that individuals who invent commodities
that are cheap and necessary for a large percentage of population have a more likelihood of
getting richer than the inventors of huge commodities that cost fortune to have and thus
consumed by less people. The owner of the business will get a chance of attaining self-
actualization as a result of huge revenue coming from the business (Tumali, 2018).
The employees in the business will also earn income inform of wages and salaries and start
living good lives. The employment opportunities created by the business will see a large
number of people get employed thus the reducing dependency ratio thereby reducing the
poverty level. The society will be ae to get an alternative source of fuel that is affordable and
thus slash the budget allocated to fuel. These saved funds could be invested elsewhere or used
to finance other projects (Maau, 2018) and (Nanlohy, 2018). The charcoal, so produced, does
not pollute the environment like paraffin and the wooden charcoal that produces carbon
monoxide gas that is fatal when inhaled. The business will also clean the environment by
recycling waste that could have otherwise been a pollutant.

VIABLE BUSINESS IDEA
Feasibility evaluation
Service feasibility
High production technology will be used to ensure that the final briquettes are quality enough
to guarantee customer satisfaction as was suggested in (Wekan, 2018). This alternative source
of fuel will enable the consumers save a substantial amount of money that would have been
spend in buying other expensive fuels. Since the commodity is environment and pocket
friendly, it is certain that it will do well in the market.
Target market feasibility
This business opportunity targets the common man whose primary fuel is either paraffin,
wooden charcoal of cooking gas. The target market will be given the due attention and the
public relations department will create close relationship with the customers to ensure that
they enjoy the service since good public relation equals high sales volumes (Kiseli, 2018).
The briquettes will be of a high quality to ensure that they have value for money and that
consumers don’t feel fraud upon purchasing them. As a result, it is believed that the target
market will respond appropriately to the launching if the business.
Organizational feasibility
Since the business will be an organization like any other, it will be divided into departments
that carry out their specialized functions. The organizational structure will be built in such a
way that there is proper communication from the top level to the bottom level employees.
That is because proper communication is the key secret behind the success of any
organization (Fujisawa, 2018). The idea of chain of command and span of control will be put
into account to ensure that the business is effectively and efficiently running. Every
department will be accorded the necessary support to ensure that it delivers.

VIABLE BUSINESS IDEA
Financial feasibility
This business does not need to start using huge capital as it is expected to grow overtime to
become the world’s leading domestic and industrial fuel producer. It will require 200k USD
dollars to begin and this money will be gotten from the entrepreneur's saving and the renting
and leasing of personal property as advised by (Douglas, 2018). Upon implementation, the
business will make the first sale in the first day and operate for three weeks to reach the
breakeven point. The business will reinvest realized profits to grow and maintain its
operations.
The proposed business model
This business targets mostly the households that use other sources of fuel as opposed to those
using electricity for heating and cooking. However, the business idea not exclude them
because they have an opportunity of opting for these briquettes and leaving the electricity
whose bills are very high as compared to the price of the briquettes. The most profitable
customer segment is households that are above the poverty line as they have funds to finance
their basic requirements. This is the customer segment that needs an alternative source of fuel
so as to cut on the expenses of fuel to channel the excess funds into other projects (Bookeh,
2018). Therefore, this customer segment will be targeted in the provision of value
propositions. That calls for the use of long tail business model that targets this most profitable
segments in the provision of value propositions. The value propositions are after sale services
and discounts for routine buyers (Camila, 2018). The key activities involved in the business
are collection of raw materials, production and marketing of the commodity. The appendix
summarizes the business model canvas in detail.

VIABLE BUSINESS IDEA
Critical success factors
In executing the business idea, care will be taken to ensure that the established business
produces high quality products that meet the customer needs and thus can satisfactorily
substitute other sources of fuel. The business will also develop strategies of using internal
resources wisely to be able to produce large volumes of the product at a cheaper price.
Provision of a cheaper and good quality source of fuel will improve consumption. The
business will also motivate its employees for the purpose of improving performance and
hence productivity. Division of labor and specialization will be taken as a priority as
suggested by (Bookeh, 2018). Every employee will be entitled into doing what they are best
at. That ensures that there is high production rate and hat the final product is of a desirable
quality.
Conclusion
There has been a debate on whether a business can operate without stiff competition and
whether a business can be beneficial to not only the founder but also the public. The fact
remains that it all depends on the chosen idea. For instance, coming up with an original idea
and patenting it gives the founder monopoly benefits thereby preventing unnecessary
competition. Again, a business idea that provides a more quality or a cheaper alternative
product is beneficial to the clients and eventually the general public. That assures that a
business can avoid competition and be beneficial to the public by coming up with a unique
idea. For instance, our chosen idea is not widely used in many parts of the globe and thus
little or not competition is expected. The business earns the owner income and helps the
public save on consumption as well as prevent environmental pollution. Coming up with this
idea was accompanied by identifying a market gap to be filled and ensuring that there are
benefits attached to it. It is therefore sure that the business will do exemplary well in the
market.

VIABLE BUSINESS IDEA
References
Bookeh, N. (2018). A literature and practice review to develop sustainable business model
archetypes. Journal of cleaner production, 56(7), 69-78.
Camila, R. (2018). Benchmarking the firm's critical success factors in new product
development. Journal of product innovation management, 4(7), 55-67.
Clawi, R. (2018). Crafting business architecture: The antecedents of business model design.
Strategic Entrepreneurship Journal, 4(7), 78-94.
Douglas, E. (2018). Interaction between feasibility and desirability in the formation of
entrepreneurial intentions. Journal of Business Venturing, 6(8), 50-79.
Fujisawa, K. (2018). The critical success factors for ERP implementation: an organizational
fit perspective. Information & management, 4(8), 46-69.
Kater, T. (2018). How 3D printing is changing business model innovation. Technological
Forecasting and Social Change, 35(7), 65-89.
Katimba, P. (2018). From business model to business modelling: Modularity and
manipulation. In Business models and modelling, 56(8), 68-89.
Kiseli, F. (2018). Investigating the feasibility of supply chain-centric business models in 3D
chocolate printing. Technological Forecasting and Social Change, 3(6), 34-57.
Maau, Y. (2018). BPMN-based business process model feasibility analysis: a petri net
approach. International Journal of Production Research, 67(7), 34-46.

VIABLE BUSINESS IDEA
Martins, K. (2018). Unlocking the hidden value of concepts: a cognitive approach to business
model innovation. Strategic Entrepreneurship Journal, 7(89), 44-67.
Nanlohy, H. (2018). Management and Feasibility Analysis of Smoked Fish Business in
Ambon. In IOP Conference Series: Earth and Environmental Science, 3(6), 46-72.
Rasam, S. (2018). Business model for transforming a coal mining asset into a rent generating
resource. A study under multiple strategic frameworks. Resources Policy, 5(7), 67-78.
Tumali, R. (2018). Energetic and economic feasibility associated with the production,
processing, and conversion of beef tallow to a substitute diesel fuel. Biomass and
Bioenergy, 3(88), 66-83.
Wekan, F. (2018). Investigating the feasibility of supply chain-centric business models in 3D
chocolate printing: A simulation study. Technological Forecasting and Social
Change, 76(4), 35-55.
Yew Wong, K. (2015). Critical success factors for implementing knowledge management in
small and medium enterprises. Industrial management & Data systems, 24(77), 78-93.

VIABLE BUSINESS IDEA
1. Appendix
The proposed business model canvas
Key Partners Key Activities Value
Propositions
Customer
Segments
Key Resources
NGOs and the
public
Acquisition of
raw materials,
manufactory,
and marketing
Delivery,
Discounts
High income
earners, low
income earners
Human,
physical,
financial and
technical
resources
Channels Cost Structure Revenue
Streams
Customer Relationships
Direct sales,
Group
purchasing
organizations
and distributor
sales
Raw materials-
80K
Manufacturing-
100k
Distribution-
20K
Onetime
payments for
goods and
recurring
payment for
value
propositions
24/7 toll-free customer support,
social media platforms, and live
chat programme