All you need to know about Business ideas

Business Idea is the main reason behind starting up a new firm. Entrepreneurship journals, books, and available literature are filled with stories of Entrepreneurs striking it rich because they had a great idea.

Misconceptions and Realities

There are sometimes misconceptions about great ideas too. Some of the misconceptions and realities are as follows –

Great Ideas just appear out of nowhere.

The reality is that the best idea comes out by devoting sufficient time to it.

Great ideas aren’t the problem; implementing them is

The reality is that problems with implementation arise from not screening carefully enough, and the ideas are generated. If this were done, a lot of frustration could be minimized, and we could eliminate odd ideas before implementation.

There are no illogical ideas.

The reality is that many ideas may not be perfect. Sometimes, the most powerful ideas come from what, at first glance, seemed illogical.

Generating Ideas

After clearing some of the initial misconceptions about ideas, it’s time to look at the process involved in generating ideas. Idea generation is an innovative and creative process.

Here are some of the ways from which you can get help in the idea-generating process –

Environment Scanning

It is one of the essential techniques that can be used to generate ideas. Scanning a large amount of information from commercials, magazines, reviews, government, consumer publications, etc.

Creativity

Creative business ideas set a business apart from one another. The combination of creative minds can push creative business ideas into reality. Creativity is crucial for businesses today, especially when the market is dependent on innovative, breaking technology.

Brainstorming

In business, brainstorming is often done in groups, but even as a solo entrepreneur, you can use brainstorming techniques to generate ideas. For example, a group of persons can sit together and generate several ideas by innovating alternative ways of meeting.

Market Research

In this method, information is gathered about products/services that already exist in the market. A systematic and in-depth study is undertaken to obtain useful data about the demand and supply for a particular product or service. This research will help in generating new ideas.

Evaluating Ideas

Although generating ideas is an important process, idea evaluation is also a vital process. It helps to decide what is important, helps identify the strength and weaknesses of the idea, helps to make the best use of limited resources, and helps minimize risks while maximizing returns.

Following are the steps which can help you in evaluating the business idea :

Product Identification

An idea should lead the entrepreneur to a definite product/service that he can sell. So the first step is to obtain a concept of the product or service suggested by one idea. We should also see whether this product is already available in the market or not. If it is already available, then find out USP( Unique Selling Proposition) and repeat it frequently. A USP should differentiate the value your business offers from your competitors and can be an effective tool for making your business memorable to potential buyers.

Search your target market/audience

The first step in the evaluation process is determining your target audience and who is going to purchase your services. One should have a clear understanding of their audience, their size, and their spending habits, among many other variables.

Trend Spotting

It means the identification of new trends. This will help the entrepreneur to understand the market and produce goods or provide services in sync with the market trends. But how do we spot trends? One of the keys to business success is to anticipate what the market will want or need before the entrepreneurs are aware of it themselves. Since it’s unlikely for an entrepreneur to see into the future, the best way to do this is to become a trend-spotter.

Following are how an entrepreneur spots trends: 

• Read Trends – Regularly read the leading publications and websites affecting their business
• Talk Trends – Talking to people is an equally important trend-spotting tactic
• Watch Trends – The entrepreneur spends some time simply watching and observing. For example, what are people eating, doing, wearing, and using?
• Think Trends – As an entrepreneur begins gathering all this information regularly, they will start to develop a “trend-spotter mind.”

Research your competitors

While conducting research, you may find that other businesses are offering similar products or services within your target market, but this doesn’t mean your business model is going to fail. Following are the four ways to research your competitors-

• Gather Information – After you know about your main competitors, you should learn which products or services they offer and to whom, Note down their Pricing strategies, positions and branding, and overall market reputation.
• Know the type of competition – Direct competition (same products to same clients), Indirect competition (slightly different products to different clients within the same market), or Replacement competition (offering different products and services to the same clients in the same market).
• Conduct SWOT Analysis – Note down what makes your competitors strong and what makes them weak. By searching online reviews and talking with their customers, you can determine how the competition is perceived within your target market.
• Reach out to your Competition – Directly communicate with your competition. You can gather important information to help you differentiate your business within the market. Building candid relationships with your competition may also lead to a beneficial partnership or mentorship in the future.