Transitioning from employee to self-employed via starting your own business is the dream of many an entrepreneur, but a major obstacle that affects many is not knowing where to start. Contrary to what many believe, the hurdle is not that high – many successful small business ideas came about after constant trial and error, or as the result of extensive market research.
But how do we do this? In this article, Real Business will go over how to come up with the best startup ideas, from collecting together your strengths and assets to building the foundations of an adaptable business – simplifying the lifelong journey of an entrepreneur.
Table of Contents
Factors To Consider When You Want To Start A Business With No Ideas
While the world is truly your oyster when it comes to business ideas and opportunities, it’s best to know yourself before thinking about the external.
1. Identify Your Strengths And Passions
Strengths are fairly easy to identify – what are your competencies, and what stands out about you from others? Passions, too, are simple – they are things that drive you effortlessly, enhancing your efficiency and ease of learning.
Think of it like a formula. How can you mix what you’re good at with what you love? Finding the answer to this not only narrows down the paths you can take for your business, but it will also alleviate your fears, as well as any other mental barriers you may have towards your work.
Strength and passion coming together means that you can become an authority in your field of work fast, if not immediately.
2. Identify Gaps In The Market
Great business ideas can never be truly great unless they pay off. The most simple and effective economics subject is “supply and demand”. If there is no demand, there is no profit. Unless you want to create the demand yourself, it’s therefore imperative to identify gaps in the market that you can fill.
Whilst this applies less to online business ideas, start with where your business will be set up. Take a look at the following:
- Conduct Market Research – Create a matrix of competitor products and their features, identify missing or weak features, and discover areas where customer needs aren’t fully met.
- Keyword Gap Analysis – Use tools like Google Keyword Planner to analyse keyword usage, find high-search-volume keywords that competitors aren’t targeting, and develop content or products to address these gaps.
- Customer Feedback Analysis – Collect feedback through surveys and reviews, analyse recurring pain points or unmet needs, and identify specific areas where customers are dissatisfied or underserved.
- Market Trends – Track emerging industry trends, spot future demands not yet addressed by competitors, and position your product/service to meet upcoming needs.
- SWOT Analysis – Conduct a SWOT analysis on competitors, identify weaknesses or threats they aren’t addressing, and capitalise on those opportunities to fill market gaps. SWOT analysis is a fantastic tool that we’ve broken down the benefits of before.
3. Your Budget
By now you should have a rough idea of what area you’ll be going into. Make sure you:
- Estimate startup costs – Estimate how much it’ll take to start within your industry, including equipment purchases etc.
- Estimate overhead costs – Where will your business be, and how much will it cost to run?
- Estimate variable costs – Inventory and production cost money to gather, maintain and execute.
- Revenue Baseline – Create a conservative revenue projection.
Make sure that you are also fully aware of the different financing options that you have available to you, such as loans from the bank, private financing, investors, crowdfunding etc. You may be able to get your hands on more capital than you thought was possible.
What Makes A Great Business Idea?
Identifying a business idea is the first step to becoming a successful entrepreneur. A good business idea is not necessarily the same thing, however, and sometimes comes later. What is important is that you keep at it.
Great business ideas come about as a result of having a good formula:
- Problem solving – Research pain points in the market, and create solutions your business can solve that are tailored towards common complaints.
- Market demand – Tools such as Google Trends can scan the size of the potential market, and how future-proof it is, ensuring you can choose an area with demand and sustainability.
- Uniqueness – Undercut competitors by side-stepping their existing offerings and taking advantage of what they don’t offer, thereby having a unique selling point.
- Feasibility – Assess the resources, skills and infrastructure you have against what you need, planning how you’ll source, operate and distribute with room for unexpected costs.
- Profitability – Forecast your costs against both your expected and potential revenue, and structure your idea to generate sustainable profits.
How To Come Up With Startup Ideas?
One great startup idea is all well and good, but you’ll need several to compare against one another to find the best path forward. Do so by following the tips below.
Brainstorm
- Visualise – Explore your ideas using mind maps, diagrams, and post-it notes to spark creativity.
- Research – Take inspiration from successful companies in the same or similar industries.
- Analyse – Study current industry trends to spot opportunities.
- Authority – Ask your target customers directly through various means.
- Connect – Connect with industry experts in your field.
- Experiment – Take some recoverable risk to explore new avenues.
List the things you enjoy or are passionate about to generate creative ideas. Be persistent, and don’t give up on any idea too soon to foster creativity.
Draw Up Pros And Cons Lists
Carefully choose a handful of your best business ideas from your brainstormed list, then for each of them:
- Draw up detailed pros and cons.
- Compare them to successful ideas in the industry.
- Begin discussions about which ones are the strongest, and begin to rank them.
Profitability and sustainability are the absolute strongest traits.
3. Review Your New Business Ideas
Take the time to review and refine your options, whilst discarding those that begin to age poorly in comparison. Keep whittling them down until you’re left with just a handful of ideas that you believe in and are excited about. If you can’t decide on just one, perhaps try and look at ways in which you could combine a variety of different business ideas to create one cohesive business plan. If you can, you may want to make detailed and structured business plans for each of your options and do further industry research to gain more information.
4. Practice
There are many ways in which you can both learn and enjoy whilst generating new business ideas. For example:
- Learn in the present – The more you know about business, the more ideas you’re likely to get. That is why it is important to keep learning, keep up with business news and trends, and attend business seminars if you can.
- Be creative – Coming up with good business ideas boils down to creativity most of the time. Just like getting physically fit, creativity takes practice. Immerse yourself in the more theoretical, experimental side of your industry.
What Are The Best Successful Business Options For Me?
This is a hard question to answer, as your skillset determines the real options. That being said, here are some easy-to-start, profitable ideas.
Landscaping Company
Starting a landscaping company allows you to make money while working outside and making lawns look good. You’ll need a truck, some basic equipment like mowers and trimmers, and the labour to do the yard work. Reach out to homes and businesses in your area and offer services like mowing, pruning, mulching, leaf removal, etc.
CV Writing Service
If you’re a good writer, start a CV writing service to help others. Create a website showcasing your expertise. Reach out to clients seeking professional CV’s. Interview them about their background, skills, and goals. Craft compelling resumes to help them land interviews. Expand to offer other services like cover letters, LinkedIn profiles, and interview coaching. This also doubles as a great online business idea.
Used Furniture Shop
Opening a used furniture shop allows you to resell quality, affordable pieces. Source inventory from auctions, estate sales, or people moving. Clean and make minor repairs. Display items appealingly in your shop and online. Offer delivery and pickup options. Build relationships with regulars.
Food Truck Business
Buy or lease a food truck and get cooking. Ensure you obtain health department and vendor permits, then focus your recipe on 3-5 items that are simple to cook, but also popular. Park at high-traffic spots or events, and start serving customers. Promote yourself on social media and try to visit places outside the box – like office complexes during lunch hour, when everyone is leaving to get food.
Dog Grooming Salon
If you enjoy working with animals, consider opening a dog grooming salon. You’ll need some training and supplies like tubs, dryers, and clippers. Lease a shop space in a busy area and decorate it cute and fun. Offer services like bathing, haircuts, and nails. Be kind and patient with the pups! Build up your reputation based on quality care.
How To Choose A Startup Idea
Choosing a startup idea for your own business can be a daunting task. Validate your idea. Talk to potential customers, gather feedback, and refine your idea. By doing this, you can narrow down your options and choose a startup idea that aligns with your passions, meets a real need, and has the potential to succeed.
Successful businesses have several key characteristics in common. They have a clear vision and mission, a strong team, and a viable business model. They also have a focus on customer service, innovation, and continuous improvement. By adopting these practices, you can increase your chances of building a successful business.
Conclusion
Don’t let trying to be perfect hinder your progress. Sometimes it is better to just get the ball rolling and release your business idea even if you aren’t 100% happy with it. You can always make adjustments and changes at a later stage. And sometimes, making mistakes can be truly eye-opening for you as a business owner. You learn a lot through mistakes. Don’t be afraid to run with the business idea that you have. It may be a little rough around the edges at first, but by starting, you’ll get an idea of how customers feel about your offering and what you can improve upon.
FAQ: How to fund a small business
There are several ways to fund a small business, including loans, grants, crowdfunding, and investors. Each option has its pros and cons, and the best choice depends on the business and its needs. Loans provide a lump sum of money that must be repaid with interest, while grants offer funding that doesn’t need to be repaid but can be competitive to obtain. Crowdfunding allows you to raise small amounts of money from a large number of people, while investors provide funding in exchange for equity in your business. To secure funding, it’s essential to have a solid business plan and financial projections. This will demonstrate to lenders and investors that your business is viable and has the potential to succeed.
FAQ: How can I learn more about my business idea’s potential market?
Doing market research helps minimise risk by giving you useful info before you invest in a new business. Look at who your target customers would be, and what they want and care about. Study what other competing businesses already exist. Analyse how big the market opportunity is and how fast it’s growing. Consider general economic conditions that could affect customer spending. Surveys, interviews, data analysis, and examining competitors can provide market insights. The goal is to make smart, informed business decisions.
FAQ: What are some good ways to market a new business?
Some key things when promoting a new business include: understanding your ideal customers, creating messaging and ads specifically aimed at them, picking marketing channels that reach them, using your website, and social media, and advertising to drive ongoing awareness and sales. Track results closely to see what works and what doesn’t. Adjust your strategies over time. Success comes from knowing your audience, communicating effectively, and sticking with the tactics that get engagement.
