How to Find the Right Business Idea When Starting a Business

How to Come Up with a Business Idea?

There are so many people on the internet who are searching the term “I want to start a business but have no ideas“, Actually, they want to start a business but don’t know where to begin. That’s only natural.

How to Come Up with a Business Idea?You know you want to start a business, but you’re not sure what kind of business to start. Maybe you’ve got a decent idea for starting a business in a certain industry, but you just can’t come up with a specific concept. That means it’s time to brainstorm.

Here are five ways to find a good business idea

1- First, you gotta get your creativity flowing.

Read as much as you can about small businesses, business in general, and trends that relate to business and the industry you have in mind. Find your favorite business subject and learn all you can about it while your interest is at its peak.

Read retail publications and websites, visit shopping malls, and other venues in your area, and go online to all kinds of e-commerce websites. You’ll find that you absorb things much quicker and comprehend them easier when you are enthusiastic about the subject.

2- Think about the issues you are facing in your own life.

Are there problems that frustrate you? Do you wish there was an easier way? Then you’re probably not the only one who feels that way, and if you come up with a problem that affects a big enough group of people, your solution could lead to a good business idea.

Ask your friends and family members about their frustrations, too. Most of our biggest and most common businesses grew out of little frustrations or daily inconvenient needs that were solved by someone.

3- Then think about businesses you rely on in your daily life.

What do they have in common? Think past the surface and write down everything that comes to mind about why everybody likes these companies, are they real one-of-a-kind products or are they successful because of their cool branding?

4. Narrow Down Your ideas

With all this mind raking, you should have plenty of possible business ideas. Now it’s time to narrow them down. Ask the people you admire and respect, what they think of your ideas. They’ll be able to give you some good insights about what to look for in a business.

5. Get Professional Help

Of course, keep in mind that your friends and family are not impartial observers. That’s why getting advice from business experts is the smartest thing you can do at the pre-startup stage. Bankers and investors won’t just give you the money, they will be a good compass for whether your ideas are valid or not.

If you have found your business idea, now it’s time to test if your selected business idea is valid or not let’s explore simple 5 ways to know if your business idea will really work or not.

5 Ways to Know if Your Business Idea Will Really Work;

1- What’s new in your product

HOW TO FIND THE RIGHT BUSINESS IDEA WHEN STARTING A BUSINESSWhat is the void in the marketplace that your business is going to fill? There’s something you believe the market needs. And you’re sure it is missing. There is an opportunity for a new idea.

2. Are your business going to solve any problems?

2- How your business idea is going to solve a marketplace problem and why you are the person to make it happen. In other words, the solution to the market needs.

3- How you are going to make money

Are you going to charge your customers a subscription or membership fee? Will you charge a set fee for a given service or charge by the hour? Will you sell a product? Will you sell ongoing or maintenance contracts, or both? Or will your business make a profit using a combination of these techniques?

4- Explain what’s new about your idea.

Which unique attributes will your business bring to the industry, customer service, technology, a special process, better taste, lower price, faster delivery, or a combination of things? Even something as simple as more convenient packaging can make a difference.

5- Don’t Forget about the Competition.

Keep in mind how big your competitors are in terms of annual revenue. This can help you predict the market size and market potential. Are there many or few companies competing for the same customers? Even though the number of competitors may be large, coming onto the scene as one more of many similar products often can be easier than trying to break into a market dominated by giants.

How to Come Up with Million Dollar Business Plan?

Executive Summary Exit Strategies
Company Overview Sensitivity Analysis
Product or Service Description Break-even Analysis
Management Bios Revenue Forecast
Industry Market Research Personnel Forecast
Marketing Plan Pro Forma Profit & Loss
Loan Analysis or ROI Pro Forma Cash Flow
SWOT Analysis Pro Forma Balance Sheet
Milestones Financial Assumptions
Competitive Analysis

When developing the sections above three areas should be considered.

Unique Selling Position:

First, what is your company’s unique selling position? In other words, why would a consumer buy your product or service over a competitor? This question can be a time-consuming task; however, it is imperative to answer.

Realistic Financials:

Second, do the financials support the industry? For example, if the industry generates $10M in annual gross sales, and your company projects $2M in annual sales in the first year, is it feasible that your company will capture 20% of the market place within the first 12 months of operation?

Management Team:

Third, what does the management team bring to the table? Have they been successful in past similar ventures or do they have a skill or expertise that will benefit the company? Remember, investors are lending the money to you and the business. The management team must be able to execute the business plan.

How to Turn Your Business Ideas into a Succesful Business?

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If you have tested that your business idea is good to go, now it’s time to implement your business idea to make your dream true.

There are so many smart people with the business idea among us that want to be their own boss and make a positive difference in this world by running a quality, community-friendly business that can produce a decent living and, perhaps, employs a few hard-working fellow citizens.

The problem with most people isn’t the wanting of it or the ability to make it work, but the fear of failure due to not knowing how to begin.

1- One of your first chores when exploring small business ideas needs to be the consideration of your own likes and dislikes. Work that seems distasteful or tedious would not be a business to your liking. Once you have a few choice ideas, it’s time to check into them more deeply. Something that seems pleasing on the surface may have business facets that don’t appeal to you.

2- You don’t have to start a business that is the only one in the area. If your community can support more than one company with similar products or services, you may be safe in following through with your idea. How well your business grows will have more to do with your work ethic, careful attention to your financial assets, and your community interaction.

3- Once you have made up your mind as to the company you want to put your brand on, it is time to get the professionally prepared company business plan that will guide your new endeavor in the direction you want it to grow.

A proper company plan will include market research into your geographical area, information on product trends and the competition you can expect in your chosen area, financial numbers and projections, and many, many other vitally important details that can mean the difference between success and failure in the business world.

Learn how to start a new business with this simple step-by-step guide.

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Joseph Ferriolo

Director at Wise Business Plans®
Joseph Ferriolo is the Director of Wise Business Plans. He has overseen over 15,000 written business plans during his tenure, raising over $1BN in funding and providing 30K+ consulting hours for startup companies.

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