Hello everyone. Today’s article is about an exciting topic that has probably crossed your mind at some point in your life. Have you ever wondered how to come up with a practical business idea? Or how to monetize it? Or how to choose a market that will optimize your profits? What about which niche to venture in? I will be answering all of these questions and more in this post.
How To Come Up With A Business Idea.
The basis of a successful business idea is to serve others, whether that manifests itself in eliminating people’s problems or improving the current situation. This makes perfect sense since service leads to greatness. Business ideas can be inspired by many things like a personal experience, a loved one’s experience, a hobby, a concern for the community, high demand, little competition, a documentary, a conversation, meditation etcetera. You get the idea. If you feel a strong compulsion to act upon your inspirations, do not shy away. Instead analyze your idea, do your research and determine if it’s something you would like to pursue. You are likely to have more than one business idea in your life and may end up forgetting especially when you need them. I find keeping a Business Ideas Journal to be extremely helpful. It’s a great way to keep these amazing ideas together. Besides, your past business ideas can be really helpful in the future. You never know.
We may sometimes feel that our ideas are ‘silly’ or may have no impact at all. This assumption alone should not determine your decision to actualize your plans. Some of the biggest corporate names started out as somewhat a joke. Granted, there are business ideas that have little potential to make impact hence fetch small capital. However, before you come to a conclusion do some research and follow the steps I will discuss further.
What To Do After You Come Up With A Business Idea
One of the very first things you need to do after settling on a business idea is to carry out your research. There are many places you can do this from such as the internet, interviews and so on. Relying only on online research is ill-advised as often times things on the ground are different. The best thing to do is to couple online research with other techniques, some of the best being carrying out a case study and interviews. First hand information from your target customers is always the most reliable source. So, what exactly are we investigating? Some of the key factors that determine whether your business idea is viable include: the demand/need, possible revenue streams, competitors, niche and the size of the market. A very effective tool that will help you to determine all these factors easily and fast is the Lean Canvas. I have written an article where I discuss in depth the contents of a lean canvas. You can find it here.
How To Create A Business Partnership
Creating a great business is a collaborative effort. Having a partner(s) to actualize your plans with is an effective way to get your goals done faster and better. At the same time, choosing the wrong partners can jeopardize your business. A misleading assumption many young entrepreneurs make is that the more people they have working on a project with them the more successful the project will be. This is not always the case. Quality overrules quantity in many scenarios including this one. The secret is to be intentional and strategic when choosing the people who will get in the train that leads to your business success. More specifically, choose people that share your vision and values. A helpful technique you can use is the First Who Then What. This means that creating a team of people who are self-driven and share your vision should be a priority over deciding what to do then proceeding to choose your team. That way, you won’t have to spend money on incentives to be used to get the right behavior from the wrong people.
Another common mistake most businesses make is having a primary driving force in the company’s success. This force may be the CEO or a any other specialist. The problem with this strategy is what happens when the individual leaves. The company will be unable to sustain its great performance. Jim Collins refers to this scenario as ‘’A Genius with A Thousand Helpers’’ in his best seller—Good to Great. The First Who Then What technique helps to avoid this.
How To Choose A Target Market
Your audience directly influences the success of your business idea. Some of the attributes of a market that will determine your profit levels include: size, demand and timing. Use this simple and clear mnemonic to determine your market:
M—Massive Problem
U—Unique Solution
S—Starving Market
T—Timing
NETWORKING
Networking is a key element in the success of a business. Try to attend events that will give you access to people doing what you plan to do, investors or even potential customers and mentors. This is a great way to get your name out there. If you have trouble knowing when and where such events are held, I recommend using Eventbrite.
Well, that’s it for today. What do you think of today’s post? Do you have any helpful tips you would like to share? Let’s start the discussion on the forum.
Until next time, see ya!