Starting a business is an exciting venture filled with uncertainty, challenge, and potential for many opportunities. However, the first step of having a business, which is also the hardest, is making the right business idea. A well-defined business concept sets the foundation and direction for what it will be in the coming years.
In this article, we will explore the best ways to formulate a business idea by exploring specific steps, questions, and considerations to make your business idea realistic and an excellent potential for growth and long-term success.
Identifying a Gap
Most people might think the first thing to focus on before building the business is evaluating whether they have the means to do it. While it can be a good start, it’s better to consider this question before counting your savings or acquiring some income base loans and debts.
“Does your business answer a need?” It should be the first question you need to answer before moving forward. By evaluating market trends, current consumer behavior, buying interests, and competitors, you would see gaps or areas of opportunities that you can solve using your business idea.
Does It Solve A Problem
Businesses exist to provide services once thought unattainable or offer convenience to consumers. By concept, your business idea should solve a problem customers face. It doesn’t need to be significant and impactful; you can start by observing your daily activities and find things that are often inconvenient for some.
For example, how do we create instant ice cubes outdoors or ways to keep your coins without bulging your pant pockets? These tiny gaps of inconvenience are always an opportunity for new startups.
Does it Make a Task Easier?
The problem most aspirants face when thinking of a business idea is they want to create the next big thing or an innovative solution too big to be true. But sometimes, the best startups are those made to solve a more mundane problem.
For inspiration, take a look at Shark Tank on ABC. The series takes startups to a stage where they present new business ideas and pitch them to investors. It would be wise to watch a few episodes of that series to understand how businesses are made, thought out of, and invested.
Innovate on Existing Products
If you’re struggling to look outside the conventional business ideas, it often helps to think of existing products and see what opportunities you could make out of them. The good thing about this is you don’t need to pressure yourself with building something new.
All you have to do is research and deeply look at your everyday items and focus on things to improve. For example, you may start building things for left-handed users or cheaper mechanical versions of adjustable tables. By focusing on making tasks easier, you’ll be able to think of many business ideas that can potentially be applied to the real world.
Consider Your Abilities
Once you have a firm idea of your business, the next to do is research, draft blueprints, and make it doable. Given that you are capable of doing so.
Formulating a business idea should also consider your capabilities and skills as a person. It would be risky to build a business in an industry you are unfamiliar with, especially if this is your first time. An excellent tip to think about your business around your areas of expertise. May it be in art, programming, carpentry, or electrical engineering.
Pick a niche that suits your skill set. Doing so will make it easier to push through your idea and understand the industry it operates in.
Are You Passionate With It?
Even the brightest and doable business ideas would fall short without passion. Passion is what runs your mind and mojo to keep your ideas running and push them to become real. Passion makes you more invested in it and resilient against concerns and setbacks.
Seek Feedback
After you consider what you’re capable of and the industry your idea would be in. It’s time to draft a business plan and pitch it to your peers for feedback. Feedback is essential to refine your idea and address errors or red flags early on. A business has to make sense for your clients and future patrons.
Start by asking your family or friends about businesses. If you can, connect with an industry expert or an experienced investor and see their thoughts. They might join the opportunity and be your partner if they like your idea.
Final Thoughts
Formulating a business idea takes time, patience, and dedication to master your entrepreneurial skills and understand the customers. Great ideas come in many shapes and forms; sometimes, they can be an industry game-changer or a solution to a pressing problem.
Nevertheless, with enough time, confidence, and reading the points above, you will eventually brew a realistic business idea that fits your skill set, passion, and capabilities. So good luck with your goals, and hope for the best in building your very first startup.