How to find your perfect business idea

If your dreams of running your own business are frustrated by the notion that you have to come up with a brilliant new idea, think again. The key is to come up with a business concept that is relevant in today’s market to meet customers’ needs. The majority of successful new businesses are based on existing ideas, products or services with maybe a tweak or improvement in the offering, thereby creating its appeal in the current market.

We all develop a unique set of experiences as our work and personal lives and this is where we suggest you go hunting for your own new business idea. To achieve this you need to undertake a thorough, logical and well-organised search including researching the current market and the ideas will begin to flow.

Our suggestion is that you adopt the following three-stage approach.

1. What skills have you developed?

Look at all your historical experiences. You will have developed specific skills in your career, which may be provide the basis for a business. In addition, you should think about the different companies and market sectors that you have worked in. Some will have been more interesting and enjoyable than others. More than likely, you will have excelled in those elements of the businesses that you found most interesting and enjoyable.

Do not confine your thinking to those experiences you have had at work, though. Think about the skills you have developed outside of work too. In particular, what do you most enjoy doing when you are not working and what would you ideally love to spend more time doing? It could be sports related, voluntary work or just a hobby, but importantly this pastime could involve additional skills. Creating a business that focuses on a hobby can create a very satisfying future job.

2. What’s going to work?

Once you have documented your past, you can think about your experience in the context of what is happening right now.

Look for areas of growth in the economy for instant inspiration. Look for businesses that are succeeding and explore if there is room for you. We live in a world where people are prepared, even in times of recession, to pay for perceived added value.

Similarly, look around for changes and opportunities that are being thrown up through the depressed economic climate. Is a particular market now being inadequately served? Staying abreast of local press, business publications and trade organisations may suggest some possibilities. The London Gazette, available online, publishes a variety of insolvency notices including winding up petitions and orders and details of the appointment of administrators and liquidators. Keep your eyes and ears open.

The world is becoming a smaller place all the time and this opens opportunities for you to be able to source products from afar and take them into a more local market. Also, there is a very rich vein of consumer interest in locally sourced products.

Think about your friends and colleagues, as you may be able to marry up your business and management skills with someone else’s physical or creative skills.

Online shopping is the fastest growing area of the retail trade. Can you see opportunities to meet consumer need with a product with limited online provision?

3. Think long-term

Finally, do not forget to look forward.

There are certain global and local trends in markets and demographics that you should consider when searching for your inspiration. It makes sense to go into a business that has future growth potential. The media can be a good source of information as they regularly report on new trends – the skill here is to find long-term opportunities as opposed to short-term fads.

But possibly the greatest inspiration of all is to try to envisage how it will feel to have your own business. Think about the rewards of running your own company both financially and emotionally and the benefits of being independent. More than anything, this should spur you on. Your personal experience is unique and should be the foundation for any new business venture; don’t underestimate it as it can go a long way to making your business unique too.

Entrepreneurship and Finding the Right Idea

If your dreams of running your own business are frustrated by the notion that you have to come up with a brilliant new idea, think again. The key is to come up with a business concept that is relevant in today’s market to meet customers’ needs. The majority of successful new businesses are based on existing ideas, products or services with maybe a tweak or improvement in the offering, thereby creating its appeal in the current market.

We all develop a unique set of experiences as our work and personal lives and this is where we suggest you go hunting for your own new business idea. To achieve this you need to undertake a thorough, logical and well-organised search – including researching the current market – and the ideas will begin to flow.

Our suggestion is that you adopt the following three-stage approach.

1. What skills have you developed?

Look at all your historical experiences. You will have developed specific skills in your career, which may be provide the basis for a business. In addition, you should think about the different companies and market sectors that you have worked in. Some will have been more interesting and enjoyable than others. More than likely, you will have excelled in those elements of the businesses that you found most interesting and enjoyable.

Do not confine your thinking to those experiences you have had at work, though. Think about the skills you have developed outside of work too. In particular, what do you most enjoy doing when you are not working and what would you ideally love to spend more time doing? It could be sports related, voluntary work or just a hobby, but importantly this pastime could involve additional skills. Creating a business that focuses on a hobby can create a very satisfying future job.

2. What’s going to work?

Once you have documented your past, you can think about your experience in the context of what is happening right now.

Look for areas of growth in the economy for instant inspiration. Look for businesses that are succeeding and explore if there is room for you. We live in a world where people are prepared, even in times of recession, to pay for perceived added value.

Similarly, look around for changes and opportunities that are being thrown up through the depressed economic climate. Is a particular market now being inadequately served? Staying abreast of local press, business publications and trade organisations may suggest some possibilities. The London Gazette, available online, publishes a variety of insolvency notices including winding up petitions and orders and details of the appointment of administrators and liquidators. Keep your eyes and ears open.

The world is becoming a smaller place all the time and this opens opportunities for you to be able to source products from afar and take them into a more local market. Also, there is a very rich vein of consumer interest in locally sourced products.

Think about your friends and colleagues, as you may be able to marry up your business and management skills with someone else’s physical or creative skills.

Online shopping is the fastest growing area of the retail trade. Can you see opportunities to meet consumer need with a product with limited online provision?

3. Think long-term

Finally, do not forget to look forward.

There are certain global and local trends in markets and demographics that you should consider when searching for your inspiration. It makes sense to go into a business that has future growth potential. The media can be a good source of information as they regularly report on new trends – the skill here is to find long-term opportunities as opposed to short-term fads.

But possibly the greatest inspiration of all is to try to envisage how it will feel to have your own business. Think about the rewards of running your own company both financially and emotionally and the benefits of being independent. More than anything, this should spur you on. Your personal experience is unique and should be the foundation for any new business venture; don’t underestimate it as it can go a long way to making your business unique too.

 

Starting your own business?

In these difficult times of economic uncertainty and unemployment may lead you to consider starting your own business. There are many challenges businesses face in these uncertain times such as cash flow, loss of customers, loss of suppliers, redundancy. These conditions however can represent the ideal climate to start your own successful business.

The key areas to consider when starting your own business are as follows:

Idea generation – Look at yourself, talk to former colleagues even friends and ask them what they perceive to be your key skills, areas of expertise and knowledge. Write it all down, consider what opportunities may exist on the market and why some businesses are performing exceptionally well despite the recession. You need to undertake research on your idea or perhaps, you might want to consider franchising. What is most important is that you spend time understanding the market you wish to enter, what are the challenges that currently exist and who will be your competitors. You need to develop your idea and the vision and objectives you wish to pursue.

Business plan & legal structure – There are many lessons to learn from adopting the right legal structure. If you intend to be self-employed you may want to consider sole trader status or to protect your personal assets, you might want to consider setting up a limited company. Again, the key here is research and giving due time and attention to consider all the possible benefits and disadvantages associated with your decision.

Never under estimate the need for a good business plan, there are many people who do this for a living so consider speaking to a professional. A business without a plan is like a ship without a rudder. You’ll go places, but not necessarily in the direction you want.   You should always have a live working business plan and visit it regularly to review, update and monitor your progress where & when necessary.

Finance – Consider your sources of finance, you do not want to obtain high interest loans at the outset. Sit down with your business consultant, bank manager or accountant, work out a realistic budget and ensure you have a contingency budget incorporated too. Murphy’s Law will always arise at some stage, so be ready and prepared and ensure it doesn’t impact your operation. You need to set aside time each week to manage & monitor your cash flow appropriately. See if there are any business grants available in your locality and whether you’d be entitled to them. You may want to consider using money from friends or family however, only consider this as a last resort option. Business is business.

Suppliers & service providers – You will get inundated with sales representatives, phone calls and all sorts of people claiming to be offering you a fantastic deal and how they will save you money. The best thing is again research what you need, what is your budget and ideally ask other professionals in the business for recommendations. Know what you can afford and where you can get the best customer service for your money to deliver the maximum amount of value.

Marketing & advertising – Having decided on your idea, developed a plan & got all the other essential tools in place; you need to consider the most effective way at marketing your product or service. There are some excellent consultants out there who really do deliver excellent value for money. Social media cannot be ignored and is fast becoming a very effective tool to get your brand and product/service in front of people. Seek advice. I would also recommend the old fashioned method of networking. Nothing can beat the face to face contact & interaction with other business people. Always have a mindset that if you help others, it is highly likely they’ll help you. Ensure you know how to speak about your company & product. Practice it before you attend networking events and always carry business cards.

The above are just some simple things to consider in advance of your launch. It is always best to prepare and plan well; this will prevent you from making mistakes at all later date.

Related articles

• To business plan or not to business plan, that is the question (business-on-fire.com)
• Top 10 Business Plan Mistakes to Avoid (under30ceo.com)