From idea to initial business concept

  1. This section will explain the so-called process approach to starting up a new business, where the sequence of relevant gestation activities is treated as a specific process which:
    • has its beginning and end;
    • comprises certain characteristic tasks occurring in particular sequences; and
    • can be divided into specific stages; and
    • has clearly identifiable milestones.
  2. For every entrepreneur, his or her own business and the path leading to its formation are unique and one of a kind. On the other hand, experience and research on hundreds of thousands of new firms undertaken by scholars specializing in entrepreneurship clearly indicate prevailing patterns and regularities. There are certain tasks, called gestation activities, which have to be performed in a specific sequence. Furthermore, it is necessary to follow the efficiency principle, according to which some tasks should be done quickly, while the more important ones require more time and attention. Obviously, while following these general rules, one should take into account the specific nature of the planned business, industry characteristics and the regulatory environment.
  3. In the proposed approach, the process of starting up a new business includes four basic phases:
    the initial phase, starting with search, evaluation and selection of ideas, ending with identification of viable ideas, presented in the form of a preliminary business concept;
    • the phase of preparation of a detailed business concept, i.e. business plan;
    • the phase of organizational preparation for starting up a new venture;
    • the phase of business start-up — establishment of the legal and organizational framework as well as operational and technological start-up.
  4. All in all, starting up a new business involves a skillful compromise between two seemingly contradictory directions. On one hand, it is necessary to use the collective experience of predecessors, in particular those who have achieved authentic business success. The accomplishment of the entrepreneurship science, i.e. systematization of these experiences and good practices, is particularly valuable at this point. Although it is pointless to reinvent the proverbial wheel, a firm should also be built on what distinguishes it from others, and therefore be original and distinct from its competition.