No first idea is perfect. Priya and Sam found that their paper stickers peeled, their first month of sales was slow, and their plastic sleeves made waste. That is normal. Refining means making small, careful changes to improve your idea. The best entrepreneurs do not guess at fixes. They follow a process, try a change, and check whether it worked.
A six-step problem-solving process
- Define the problem. Say exactly what is wrong, with numbers if you can. 'We sold only 25 stickers in two weeks' is clearer than 'sales are bad'.
- Find the causes. Ask 'Why?' more than once. Look at feedback and your budget.
- Brainstorm solutions. Use the brainstorming rules from the start of this unit.
- Choose a solution. Pick one using your criteria, such as cost, time and impact.
- Try it. Test the change on a small scale first.
- Check the results. Did the numbers improve? If not, go back to step 2.
Refining for economic success
In their first two weeks, Priya and Sam sold only 25 single stickers. Feedback showed students liked the stickers but wanted more than one, and many had only a few dollars. Their solution was a bundle: 3 stickers for $8.00. Each bundle costs to make, so it leaves . A single sticker leaves only $2.00.
| Month total | Before (singles only, 25 sold) | After (35 singles + 20 bundles) |
|---|---|---|
| Revenue | 25 × $3 = $75 | 35 × $3 + 20 × $8 = $105 + $160 = $265 |
| Stickers used | 25 | 35 + 20 × 3 = 95 |
| Cost of items | 25 × $1 = $25 | 95 × $1 = $95 |
| Start-up costs | $65 | $65 |
| Total costs | $90 | $160 |
| Profit | $75 − $90 = −$15 | $265 − $160 = $105 |