Now we will discus about the Business Idea. The first step in starting a new business is having the right business idea.
Every successful business or enterprise starts as a simple idea, a solution to a
problem or a dream in someone's head.
There are 3 main sources for good business startup ideas:
A New Business Idea
Building a Business on Your Existing Skills
Buy a Franchise or Existing Business (someone else's idea)
Explore all three options below to see which is the best fit for you.
1. What is A New Business
Many businesses are started by people who had an idea and simply
ran with it. If you look at the most successful entrepreneurs, there are a few
common themes :
They Follow Their Passion
One thing nearly every great entrepreneur has is a
passion for something. Whether it be software (Bill
Gates), Real Estate (Donald Trump) or Ice Cream (Ben and
Jerry), these entrepreneurs have managed to identify
what it is in life that they love to do and make it into
their job. They've literally created their dream job!
Obviously one of the first things the budding entrepreneur needs to identify
is what makes them tick. What do you enjoy doing so much that you literally lose
track of time? What would you do if you already had millions and money was not a
This can't be emphasized enough. Don't wake up 2 years after you've started
your business to realize you don't like what you're doing. Think about what
makes you happy, excited and passionate now and build a business around that.
They Solve Problems
Entrepreneurs also solve problems. Sure, your passion may be to make sandals,
but the problem-solving angle has to come into account sometime (i.e make the
best/cheapest/trendiest available). Entrepreneurs are continuously wondering if
something can be done better, faster, cheaper or in a completely different way.
They look at their surroundings and can find opportunity to improve just about
For the aspiring entrepreneur looking for their first business idea, we
advise you simply start paying attention to your surroundings : notice why one
store is always packed while the one across the street is not; pay attention to
trends in commerce and technology; ask why is this or that so slow, or so
inefficient, or so expensive and start brainstorming on how to improve upon
Entrepreneurs do not accept the status quo, they look at something, wonder
why it isn't done better, and then go out and outsmart those not willing to
They Stay on Top of Business Trends and New Markets
One of the quickest ways to start generating business ideas is simply to look
at what's succeeding right now. Check out the
INC. 500 Fastest Growing
Entrepreneur Magazine Top 500 Franchises and the
businesses going today.
Look around your town: see those trendy coffee shops on every corner? How
about those healthy fast food places and 99? Stores that are popping up
everywhere? There's a reason why these businesses are exploding and an aspiring
entrepreneur should know why.
2. Building a New Business on Your
Most new businesses are started by people with a particular skill that have
simply built a business around that skill. A machinist will start his own shop,
a talented secretary will open her own secretarial service, a good cook will
open his own cafe, etc.
The most important skill to acquire if you're going to take this path is to
start thinking from an entrepreneurial perspective instead of a professional or
employee perspective. In fact, one of the most influential small business books
of all time was written about this very topic: The E-Myth: Why Most Small
Businesses Don't Work and What to Do About It by Michael Gerber addresses
the fact that while most small businesses are started by people with an existing
skill, very few of them have the operational and entrepreneurial skills to make
their business a success.
For example, someone may be a great carpenter, but do they know how to market
their services, manage the books, hire more talented carpenters or systemize the
business to run itself? Michael Gerber argues that most people don't and he's
outlined the specific steps that will help the business owner remedy the
Get the following Book to learn more:
The E-Myth: Why Most Small Businesses Don't Work and What to Do About It by
Michael Gerber (amazon.com)
3. Buy an Existing Franchise or an
Many times, the fastest and easiest way to start a business is to simply buy
an existing business or franchise. Franchises are attractive because they've
already proven successful and you are simply buying into their system. Existing
businesses are attractive because you can pick and choose the right business and
most of the legwork has already been done.
Do your research! There are a lot of businesses and franchises out there; not
all of them are the best match for you and many are not nearly as great as they
may say they are. Due Diligence is the keyword in this instance and buying a
business can be a complicated process.