I have been asked many times how to come up with a great business idea. After more research I believe this is one of the biggest barriers to young entrepreneurs. Coming up with a viable business idea is often the first step towards entrepreneurship. Whether you’re a seasoned entrepreneur or a budding business owner, generating a solid idea requires creativity, research, and practical strategies. One of the best ways to generate a consistent flow of new ideas is to approach it from as many different angles as you can think of.
Conduct Research for Your Business Idea
1.Market Research– Study existing businesses in your area of interest and identify what they lack. This could be in terms of product features, customer service, or availability. Gather feedback directly from potential customers to understand their needs and preferences. Study your competitors to identify their strengths and weaknesses, helping you refine your unique selling proposition (USP). Example: Airbnb founders noticed a gap in the affordable lodging market during conferences and events, leading them to create a platform for short-term rentals.
2.Industry Analysis– Utilize industry reports, market analysis, and trend publications to get a comprehensive view of the market landscape. If you’re planning to start an organic food delivery service, determine the size of the organic food market in your region and its growth trends over the past few years. Conduct a SWOT analysis to assess your business idea’s potential and identify areas for improvement.
3.Customer Persona Development– Create detailed customer personas to understand your ideal customer’s demographics, behaviours, and pain points. Example: If you’re launching a fitness app, define personas based on age, fitness level, goals, and preferred workout styles.
4.Analyse trends– Keep up with industry trends and emerging technologies. Trends often indicate where consumer interests and needs are headed. Pick an industry and spend a couple of months reading everything about it. Look at the trending topics on Social Media Sites like Twitter, Reddit, Buzzfeed, YouTube etc. Do it until you get to the point where you are able to spot and predict upcoming trends yourself. If you are able to jump onto trending topics fast enough by creating or reselling related products or services, you can build a valid business. For e.g. The rise of eco-conscious consumers led to the success of businesses like TOMS Shoes, which combined stylish footwear with a social mission.
6.Keep a Problem Journal– Carry a small notebook in your pocket. Every time you come across a problem write it down. Examples are “I hate scraping my windows” or “I hate sweeping” or “I hate waiting for taxis” or “I can’t pay rent” or “I hate hotels”. There are so many problems in the world, large and small. Just consciously thinking of these problems as opportunities has led to great companies and products like Roomba, Uber, and Airbnb.
Methods for Generating Business Ideas
1.Identify a Problem to Solve– Look for problems in your daily life or within your community that need solutions. Take your ideas from your journal and read through them. Which one drives you crazy? How can you fix it? Make changes to improve your solution. Often, the best business ideas come from addressing a specific need. Spanx founder Sara Blakely created her billion-dollar business by addressing the need for comfortable and effective shapewear for women.
2.Know your market– What retailers would carry your product (if physical) or how you will get it in the hands of as many people as you can so you can solve the problem for them? Who is your ideal customer? Who are your competitors? How much would you pay to solve that problem? Go out and ask people. Start with friends and family, but then get out to malls or areas where your ideal customers would hang out.
3.Solve a Problem for a Niche Audience– A successful business idea often stems from solving a problem for a specific, niche audience. This involves understanding the unique challenges or unmet needs of a particular group and creating a targeted solution. Prasant Tandon and Sameer Maheswari founded HealthKart in 2010. HealthKart aimed to target a specific segment of the Indian market segment. Young fitness enthusiasts.
4.Combine Passion with Expertise- Think about what you love doing and where your skills lie. This combination can lead to a fulfilling and sustainable business. Make a list of things you love to do and would do for free. Think about how you could turn these things into a business. For eg. If you are passionate about healthy living and spend your free time researching recipes, finding new ways to workout and read up on the newest health trends — why not start a blog or coaching business with your expertise.
5.Leverage Your Skills, Strengths and Interests– Look at your past jobs and analyse what you were really good at. Think of industries and types of businesses that would allow you to use your skills and strengths. For example, if you were really good at writing blog posts in your past marketing job, you could start a business as a freelance writer.
6.Become an Idea Machine– Train your brain to come up with ideas on tap by writing down 10 ideas about one topic every day. They don’t need to be business ideas but they need to be related to just one topic. This will force your brain to get really creative. For eg. write down 10 ideas to make cooking easier, 10 ideas to lose weight, 10 ideas to sell books.
7.Read, Read, Read– The more you read about different things in all sorts of areas, the more ideas will come to you naturally. By expanding your knowledge, you are expanding your realm of business ideas. Read books, magazines, and online articles.
The most useful startup idea is one you love, that solves a problem, create a solution for something that you find really annoying or painful in your life, create a better solution for something that you do every day — e.g. make the process more efficient, less expensive or more enjoyable.
Generating a business idea is an exciting and dynamic process that requires creativity, research, and a keen understanding of market needs. With thorough research and strategic planning, you can transform your idea into a successful business venture.
Keep exploring, stay curious, and don’t be afraid to think outside the box. Happy brainstorming!