Every entrepreneurial project starts with a business idea. The business idea is the stepping stone on which you’ll build your entrepreneurial dreams.
One of the most difficult aspects of starting a business is identifying and establishing the idea. This can’t be random. It requires an analytical framework and rigorous study to guarantee its success.
There are hundreds of businesses and competition is high, so only an idea which can offer something uniquely different can be taken as an ideal business.
Do you want a good business idea? Read on to learn about starting the search process to find the best idea for your future business.
How to think of a good business idea
Not all business ideas are the same. In fact, less than 5 out of 20 business ideas are likely to be feasible and have a promising, successful future.
Competition is high, so small details will allow a business idea to survive in a volatile and constantly changing market.
Where do I start? Take note of the following to think about good, innovative business ideas. Let’s go!
Advice for finding business ideas
As an entrepreneur, you may have a lot of business ideas. They may sound great in your head, but are they really innovative ideas with a future?
Here are some actions and questions that can help you determine the validity of your business ideas.
Resolve something that bothers you
There is one thing that all successful businesses have in common: solving problems.
The only way to be successful in the market is to solve a problem for the audience. The most basic level of a business comes down to this task.
One of the easiest ways to find ideas to solve problems is by looking at your own life. In other words, solve something that bothers you and you may possibly have a very good business idea.
You don’t need to look at a target customer type and analyze their needs… It’s closer than you think. You can be the customer model yourself to find out and identify the product or service to provide in your business.
Brainstorming is one of the best known techniques for creative problem solving.
It is a practice by which a group of people try to find a solution to a specific problem by putting all their ideas together.
It combines an informal approach to problem solving with lateral thinking, which is a method of developing new concepts to solve problems when viewed in an innovative way.
Not only can it help you find business ideas, it can also be the key to providing solutions to the challenges and goals that the business idea will entail.
Analyze the market
Every business idea must have a market analysis. This is one of the first and most important things to do before making a professional business plan.
Keep in mind that markets change and an innovative business must follow suit.
You need to look at the potential market, not the current one. While the latter’s information may be much needed, it’s interesting to know if there’s a possible customer niche for your new business idea.
Factors to bear in mind
- Market segmentation. Try to divide the target audience into segments. Doing this will help address the more specific needs of the market.
- Market size and growth. The market must be measured and estimated. Market forecasts start with the total number of potential leads in each segment of the market to then estimate the percentage increase in their growth.
- Market trends. You must understand what is happening in the market. Trends, demands and the type of offer that exists in the selected market.
Develop a cheaper version of an existing product
The price is a vital part of the success formula in business and finance. Most people get confused or have disputes about the price of their products or services.
A good idea to set yourself apart from the competition is to develop products and services at a lower price than existing ones. The idea is clear, if we lower our price, we’ll be more competitive and sell more of our products.
This requires an analysis of the feasibility of this pricing in order to verify its suitability. The demand of products doesn’t increase for all products when their prices are lowered.
Apply your abilities to a new sector
What are your abilities? Are these essential resources to change or improve a new sector?
Another way to identify innovative business ideas is to review our skills applied to a business sector.
Find a category that hasn’t shown any recent innovation
By taking innovation as a differential factor for a business idea, we’ve identified a niche lacking innovation.
With this business niche identified, it is to be considered that innovations are possible and what solutions contribute to potential customers.
An entrepreneur must have the capacity to listen to be able to get the necessary information at all times.
The social environment around us can give us an idea about the trends and demands of society and a particular market.
On the other hand, because sales are inadvertently concentrated in the later stages of the buyer’s purchase decision, it’s important to listen carefully to all the details about the needs of these potential customers.
In the end, you’ll get a clear view of a business context that can become an innovative business idea.
2020 can be the beginning of your entrepreneurial career. To maximize your chances of success, you have to identify an innovative business idea and able to give a clear response to the demands and needs of a certain niche of customers and type of market.