Many potentially good entrepreneurs never form businesses because of lack of ideas. The best business idea combines the individuals’ strengths, skills, abilities, experience and education with imagination and market demand. Resolving a common issue can create an opportunity. Successful entrepreneurs discover a need and fill it by providing or improving upon a service or product. 

The best-laid plans sometimes do not work out. Research is of utmost importance in developing a good business idea and plans. Though an entrepreneur may already have an idea in mind, the desire to start a business may have begun for the sheer notion of having a self-owned business and not because an idea was developing. In this case, there are tricks to use to develop a list of ideas. 

What Ideas?

Consider what items are used on a daily basis and how they could be improved, made more cheaply, smaller, more quickly, or if they can be combined.

Recently Marketed New Items

Think about what products and services are relatively new within the last 10, 20 or 30 years. Consider your own skills and experiences. As with writing the business plan and developing a list of strengths, opportunities, threats and weaknesses, write a list of personal SWOTs and what can be done to turn threats or weaknesses into opportunities. For example, perhaps an individual can obtain some training in an area of interest in which he/she is weak.

What is it that People Hate to Do?

Consider what chores typically are disliked. There is a reason people pay for babysitting or cleaning services. A service in one of the types of work that people hate to do, for example, cleaning bathrooms, may be a consideration.

Develop a List

Combine the ideas with strengths or opportunities, yielding a list of potential ideas. Conduct research about the ideas on the list. The focus of the research should be to consider whether your product or service is different from existing ones, if so, how; is it a new product/service, and in this case, what makes it appealing; or is it a product/service that bridges a gap within existing products/services?

Research

Research can be conducted online, at the public library, or through the Small Business Administration (SBA), SCORE, or local business development agencies that may exist through local or university organizations. Attend a counseling session with an expert and ask them for input and advice. They may offer questions to consider prior to proceeding.

Perform a Competitive Analysis

Conduct a market study of similar products or services within your potential target market Consider the competition’s entire offering, not just one part of it. For instance, do not just look at the fact that there is a competitive small business accounting service in your county, but consider all that business’ offerings, such as tax preparation.

Marketing Considerations

When developing a business idea, think about how it will sell. There are several marketing considerations to make.

Value added is ensuring your product or service’s uniqueness. Try to provide a product or service that stands apart, something that is not already offered on the market. If it is available, think about how your product/service will differ.

Branding is an essential consideration that is ensuring business can effectively create a product or service that has an identifiable name and uniqueness associated with your specific company, known as brand.

Franchising

There are many franchise opportunities for the right person. Conduct research on those of interest to you.

Financing

If financing is a concern, first come up with the idea. Chances are you may not need as much money, or any, to start up certain businesses. For example, data input or typing may be possible with simply a home computer and basic software that you already have. If the idea requires more extensive financing, visit your bank or look at investor possibilities. “Angels” are people who are looking to invest for a profit but may not necessarily request any interest in the business.