Not all great business ideas turn out to be viable business opportunities. Therefore, a compelling business idea can be a breakthrough in the process of establishing a successful company. If introduced at the right time, when demand for such a product or service introduced by the idea is expected to grow, a business idea can result to a very profitable business.
Definition of business idea generation
Business idea generation can be defined as a process of creating, developing, and
communicating abstract, concrete, and visual ideas. The process includes building through the idea, innovating the concept, developing the process, and bringing the concept into reality.
The characteristics of a good business idea are;
• It should show how large the market is for the product or service offered, which target group(s) it is meant for, and how it differentiates itself from the competition. If there is not enough demand for your product or service, your business will never take-off. Furthermore, you need to understand your customers before you try selling to them.
• It should fulfill customers’ needs or solve a problem. Every product serves a purpose. For example, it should save people time or provide new luxury. It is crucial for you to be clear about how your product helps people or solves a specific problem.
• It should also show how much money can be earned with it, and how the money will be earned. You need enough profit to sustain a business. Consider employees’ salaries, expenses, administration costs, labor, transport and material costs.
• It should be viable and have potential for growth whether through expanded product ranges or activity in new markets.
Ways to generate potential business ideas;
• Start with family and also get a little help from your friends. Chances are
a couple of them have incredible business ideas. Keep your eyes and ears wide at all times, so that you can retrieve good ideas when you stumble across them.
• Go out and meet new people. Attend networking and learning events, talk to people outside your industry, or start a conversation with your existing customers.
• Keep a pain point journal where you write down your everyday frustrations or things that bug you. Review it regularly, and share it with others to see if they also experience the same problems. Then ask yourself, what product or service could you create that would solve that problem?
• Look for business opportunities that you can create from what you love to do. A lot of clever people have taken up hobbies and turned them into successful companies.
• Explore new ways of thinking. Examine old mousetraps- then build better ones.
• Travel. There is a whole of a big world out there and great ideas that haven’t reach your market. If you see an idea that you love during your travel, you can then bring it home, and give it a new spin that will specifically address the needs of your market or community.
• Take it to the streets. Great ideas can often be found by just browsing what is happening in towns.
• Go online and look up entrepreneurship and industry related communities. Go on social
media and see what people are talking about. You might learn about new niche fields, networking opportunities or other topics that might spark something. Sleep on it. Many people ignore their dreams, and some don’t remember them at all. Sometimes it pays to listen to those inner messages, no matter how strange or non-tangible they are.
• Do your market research to see what’s out there and where your idea could fit in.
>> Quote of the week
“You don’t need to be a genius or a visionary, even a college graduate for that matter, to be successful. You just need a framework and a dream,”
–Michael Dell, owner of Dell.
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