Entrepreneurship is a path many pursue, and for good reason. While each business endures various challenges and roadblocks, the potential benefits are extensive and intriguing.
Those looking to become entrepreneurs or someone who starts their own business often get stuck at the first step: coming up with a business idea.
While it is tempting to think that all of the good ideas are taken, that is simply not the case. In an ever-evolving world, new problems arise, which means new demands to meet. There are plenty of opportunities out there for aspiring entrepreneurs. It’s just about finding and seizing them.
In this article, we will cover what qualities make a good business idea, as well as various methods for finding those ideas.
What makes a good business idea
Don’t rush to pick the first idea that you come across. Many entrepreneurs fail due to a defective idea or mindset.
You need to make sure that your idea is relevant and has the framework for success. Although every business idea is different in its respective concepts and complexities, there are a few qualities consistent in each one.
Predetermined demand
Supply and demand is a cornerstone concept of business. To produce supply there must be a demand present. If not, then your efforts are futile.
A good business idea should have definite evidence of demand in the industry or niche. With predetermined demand, there also comes market validation and stability that lowers the chances for failure.
Clear goals
Outlining your path to success is vital for any entrepreneurial journey. Well-defined goals provide direction and purpose to your business idea, as well as create a measurable framework to track your progress.
Your goals, whether they be long-term or short-term, should be molded into SMART goals. SMART goals are goals that are specific, measurable, attainable, realistic, and time-bound. This is crucial to making your goals concise and achievable.
Market research
Thorough market research is essential for a good business idea. This usually involves analyzing competition and identifying a target audience. This helps you to understand customer needs, as well as the size of your industry and growth potential.
Unique value proposition
A unique value proposition is a brief statement that explains the benefits of the business idea, such as how it solves customers’ problems, and how it is unique.
Usually, the unique value proposition would be meant for investors examining your business, but in this case, it is used to justify and ascertain your idea. Determine what makes your business idea stand out, and why it should be successful.
How to find ideas for starting a business
Of the numerous things you need to do before starting a business, finding an idea is the most important. This is often seen as the most challenging step, and most people aren’t able to advance to just one idea. So how do you actually find one?
Here are various methods for finding ideas to start your business:
- Looking for problems (and solving them)
- Building on your hobbies or interests
- Looking for something that you could improve
- Asking others
- Thinking about problems for the future
- Brainstorming
Keep an eye out for problems (and solve them)
One of the best ways to generate business ideas is to keep an eye out for problems. After all, problem-solving is the epitome of entrepreneurship.
These problems can be found by considering problems that occur in your everyday life. Maybe it is something that frustrates you, or just something that you face every day. If this is the case, then chances are that there are others who share the same issue.
Once you have distinguished these problems, then find a solution that will resolve them. This solution can be the central principle of your business idea.
Build on your hobbies or interests
A whopping 53% of Americans claim to be unhappy with their job. This can be a result of conflicting interests or passions. Thus, building on your hobbies or interests can not only be a profitable business idea but also lead to a happier career.
When you align your business idea with your interests, then you are allowing yourself to enter a more comfortable space where it is easier and more enjoyable to build a business.
For example, if you enjoy or are accustomed to software and coding, then building a software company will be easier than centering a business around something that you are oblivious to, such as opening a restaurant when you don’t know the first thing about cooking.
“If you love what you do, then you’ll never work a day in your life.” Even today, Confucius’s wisdom applies to our lives.
Look for something that you could refine or improve on
Your business idea does not have to be an entirely new concept. It can also improve something or make it easier.
By thinking about ways to make something easier, you can generate numerous business ideas that have the potential to become successful.
For example, say you notice that existing packing supplies are rudimentary and wasteful. You could come up with products that offer an eco-friendly and innovative alternative to traditional packing supplies.
Ask others
Asking others is a great way to come up with new ideas. This can be on online forums such as Quora. It is always a good idea to get different perspectives on something so as to not be closed-minded.
Additionally, you can ask your family and friends. By asking those close to you, you not only gain valuable insight from others but also get an idea of what would be a good fit for your skills.
You can also ask for feedback on business ideas that you have already come up with. This feedback can let you see the strengths and weaknesses of your idea that you would not have seen yourself.
Think about problems for the future
Thinking about problems for the future is an innovative method of creating a business idea. By adopting this method, entrepreneurs are not only able to create relevant solutions but also disrupt markets (or even make a new one).
Businesses that focus on future problem-solving set themselves up for long-term success by getting a head start in their industry.
Look at Elon Musk. He was laughed at for his business models. However, by focusing on solving problems for the future, he set himself up for success. It is predicted that we will run out of fossil fuels by the end of the 21st century. By creating Tesla, a company that creates electric cars, he has eliminated the need for fossil fuels in the car industry.
Brainstorm
Another way to find a business idea is to brainstorm. Brainstorming allows individuals to utilize divergent thinking and explore a wide spectrum of possibilities.
Try writing down 10 ideas every day and see where it takes you. This will force your brain to get creative and can even lead to a legitimate idea that can be turned into a successful business.
Coming up with a business idea is a step that should not be overlooked. It should be given time and effort to make sure that your business is set up for success.
Thank you for reading. If you enjoyed it then check out our other posts.
