How to come up with a business idea
So you have decided that you are ready and want to run your own business? Now you need to decide what you want to do – provide a service, create a new product, grow an existing family business?
Step 1 – What do you have to offer?
- Personal strengths
- Areas of interest
- Areas that you are passionate about
The above ideas will help to guide your decision about the type of business you want to run – for example:
- Do you want to provide a service?
- Produce a primary product?
- Add value to primary products?
- Create an entirely new product or service?
Your business idea must be based around your personal skills and strengths – ask someone else if they agree with you as to what your strengths (and weaknesses) are.
Step 2 – The Market
The following information offers guidance to help you understand how to spot an opportunity within a market place.
- Understand your audience – who will be your customer? What do they want? Why are they not getting what they want already?
- Spotting a new market within an existing market - i.e. spotting a need for goods or a service that is currently not being catered for.
- Improving the efficiency within a supply chain. Could you perform a job or service more efficiently than it is already being done, and in doing so create additional value in the supply chain.
Once an idea has been generated it is good practice to heavily scrutinise the idea before investing money. This should be done using market research to assess need and by financial modelling to assess the viability of the business both in good and bad operating conditions. See Business Plan section