Working on the right idea

Definitions.net describes a business idea as a concept that can be used for financial gain and is centred on a product or service. It is also defined as a concept that can be used for commercial purposes. A business idea is a foundation upon which a business is built. Your business idea is the first thing you need to figure out when starting out as an entrepreneur. This is because every other step is dependent on that decision.

Some people come up with their business ideas in the most unexpected way. While some do the usual brainstorming and market analysis to solve a problem they discovered, others get inspired by mundane things. Here are five ways you can come up with the right business idea for you.

How to figure out the right business idea for you.

• Conduct research in your field: If you currently work in maybe banking or fashion, and you’re looking at starting your own business, you can begin by conducting research in your field. For example, you may realise an increasing need for pattern makers in the fashion industry during your research. You can then come up with a business idea to meet that need.

• Innovative solution to an everyday problem: Study the daily life of a potential customer. Look at how they go through their day and the kinds of things they spend their time on. Spot the lapses there and work on innovative solutions to that.

• Experiment the mundane ideas: There are ideas that you probably don’t think are “good enough”. Sometimes the best ideas may not sound “groundbreaking” but will prove otherwise during execution.

• Meditate: Take some time out of your day to meditate. This is because an unsettled or stressed mind might struggle to develop a creative and clear business idea.

• Talk to people: Have conversations with consumers in the field you want to venture into. Ask them what a day in their life is like and what they struggle with. When you’ve figured this out, you should then ask yourself, “how can I make this better?”. Your answer to this question may be a potential business idea for you.

Idea gotten, what next?

Now that you’ve gotten your business idea, here’s what to do next.

1 Business viability: Start by checking if your business is viable. Business viability is measured by a business’s potential for long-term survival and the ability to sustain profits over time.

There’s no point in building a business that no one needs. You can check the viability of your business by taking this short test.

2 Get expert opinion: While personal research may provide you with the necessary information to get started, getting expert opinion on your business idea should not be exempted. In this article by Entrepreneur.com, it is said that “Many startup crises can be averted by seeking expert guidance in the planning stages, long before leases are signed or business cards are printed.”

For example, if your business idea is to launch a Fintech company, you may consider speaking with another Fintech founder or even a commercial bank executive.

3 Research on competition: Unless you find yourself in really unique cases, there’s likely to be one or more people who are already doing what you plan to do. This is no cause for worry, though, as competition usually indicates a market for that business idea. Do extensive research on your competition using the SWOT Analysis framework.

4 Conduct market analysis: Market analysis is a thorough assessment of a market within a specific industry. Doing this equips you to make informed decisions and provides more insight into making your business stand out. This article details how to conduct a market analysis for your business.

5 Work on a business plan: A business plan is a document that provides a clear plan on your business idea and how to successfully execute. Business plans typically cover for a duration of five years and provide a roadmap for your business’s marketing, financial, and operational standpoints and will help provide structure for your business. Business plans are also necessary when you need to collect loans from banks or investors. You can learn how to write a solid business plan here.

Conclusion

It is important to note that there are countless businesses in the world right now. Chances are you won’t be coming up with new ideas, so don’t beat yourself up. Look at the existing problem and see if you can provide a better solution to that problem. Your business idea can be centred on improving a current solution to a problem.