| How Do You Find the Perfect Business Idea? | | | | potential clients/customers to support your new |
| The answer to this question is that the perfect idea | | | | business? Is the market already overcrowded? (While |
| probably doesn't exist. Your aim should be to choose | | | | an overcrowded market definitely shouldn't put you |
| an idea that is practical and workable, given your skills | | | | off - after all, it shows there is a lot of demand for |
| and experience, and your long-term goals. It should | | | | your product or service - it is a signal to step back a |
| also be an idea that fires your enthusiasm and | | | | little and assess the situation carefully.) The first and |
| something that you can really believe in! | | | | most important question you should ask is: |
| Some new business people find it hard to settle on a | | | | - What is special about my idea? In what way is it |
| single business idea because they are worried about | | | | different from other, similar products or services |
| missing out on new opportunities or narrowing their | | | | already on offer? |
| options too early on. But remember, even when you | | | | Now work through the following questions, jotting |
| have started your business, it is possible to add new | | | | down your answer to each one. |
| services or products, or even to begin a second or | | | | - What is it that you will personally bring to the |
| third business. You and your businesses will continue | | | | business in terms of relevant experience and |
| to grow and develop - so in selecting your first | | | | expertise? In what way are you qualified to run this |
| business idea you are not saying 'no' to other | | | | particular business? |
| opportunities. However, to give your first business | | | | - And just as importantly, are there any skills or is |
| idea a really strong start you might need to put | | | | there any knowledge that you need to acquire |
| other ideas on hold for a while! | | | | before you can run this business? |
| Inspiration for your new business may come from: | | | | - Is there a market - a need for the idea, and |
| - inventing something new - some people are | | | | customers who will pay for it? |
| naturally good at finding original solutions to problems. | | | | - How big is the market, and how will you reach it? |
| Others come up with completely new ideas based on | | | | - Who are your main competitors? |
| new technology or other developments. Sometimes | | | | - How will you fund your business idea? (How much |
| people are driven to invent a solution when they are | | | | income do you need?) |
| faced with a problem in their own life and realise | | | | - What might go wrong? |
| there is no solution... yet. | | | | It will also help if you keep up-to-date with the |
| - copying someone else's idea - this can be a great | | | | current events to help you identify new trends and |
| starting point. If an idea is working for one business | | | | new products being launched. You should think about |
| there's a good chance it could work for yours too. | | | | whether your idea serves a need created by new |
| However, this one needs to be handled with care. If | | | | technologies and consider whether social trends will |
| the marketplace is already overcrowded, you will | | | | boost or cut demand for your product. |
| need to offer something really special to earn your | | | | Ultimately your business idea is only a good one of it |
| share of customers. | | | | allows you to create a successful business. |
| "Sandra was considering opening her own hairdressing | | | | Will Your Idea Stand-Up? |
| salon - other hairdressing businesses in her small town | | | | It is important to assess your idea objectively in the |
| seemed to be doing very well, and she was an | | | | cold light of day. By all means seek expert opinions, |
| experience stylist with several years professional | | | | and ask the opinion of people you trust. But make |
| experience under her belt. However, once she began | | | | your own assessment of the facts too. Business |
| researching her market, she realised that there were | | | | history is littered with examples of highly successful |
| six salons in a small town of perhaps 15,000 people. It | | | | business ideas that no one but their inventor believed |
| also became clear to her that although a couple of | | | | would work - one need look no further that Dyson's |
| the salons were doing very well, two of the others | | | | bagless vacuum cleaner or Richard Bayliss's clockwork |
| were really struggling. This was an overcrowded and | | | | radio. What distinguished these two inventors was |
| highly competitive market. If she wanted to open her | | | | absolute determination and the ability to grit their |
| salon in her home town Sandra needed to decide | | | | teeth and plough on, regardless of criticism and |
| how her business would be different. How would she | | | | opposition. |
| stand out from the rest and attract customers?" | | | | Interestingly, in a recent follow-up to the |
| - spotting a gap in the market - this often happens | | | | much-acclaimed UK series Dragon's Den, it was often |
| by accident. Perhaps you look everywhere for | | | | the businesses the Dragons criticised most heavily |
| something you need, only to realise that no one in | | | | and decided not to invest in that were most |
| your area is providing it. | | | | successful. Did the Dragon's criticism drive the |
| - developing your own skills and interests - building on | | | | rejected entrepreneurs to prove them wrong, or |
| your own areas of expertise can be a great starting | | | | does it simply show that even successful business |
| point, not least because you probably already | | | | people don't necessarily recognise a good idea when |
| understand the market and the needs of your | | | | it lands in their lap! |
| potential customers quite well. Many people dream of | | | | But that doesn't mean you should completely ignore |
| earning a living doing something they love, and there | | | | other people's opinions or skimp on market research. |
| is no reason why they shouldn't achieve this goal, | | | | Indeed careful planning and research will allow you to |
| given careful planning and hard work. | | | | hone your original idea, creating an embryonic viable |
| "Graham was a keen fly fisherman. He decided to | | | | business. |
| start a business running fishing holidays to Iceland, a | | | | Thorough market research is critical - it can tell you |
| place he had visited several times himself, and where | | | | whether customers really are willing to buy your |
| he had several useful contacts. The business was | | | | product or service. It can also give you a good idea |
| highly success and with three years he had expanded | | | | of what you should be charging and reveal who your |
| his fishing holiday business to cover Canada, Russia | | | | competitors are. We shall be looking at market |
| and Norway as well. | | | | research in some depth later in the course. |
| Graham's business catered to a small, specialised | | | | Carrying out the following key steps will reveal |
| market. This is sometimes called niche marketing." | | | | whether you have a viable idea or not. At best they |
| Business ideas may be found in the most unexpected | | | | will give you a solid launch pad for your business, at |
| places or in everyday situations. Ideas don't need to | | | | worst they will reveal an insurmountable hurdle that |
| be wildly inventive or original to succeed: | | | | causes you to seek out alternative ideas. But if there |
| "Often the simplest and most obvious ideas are the | | | | is a major problem, it is better to identify it now than |
| best. When I first started out, I picked up a yellow | | | | six months down the line when you have already |
| pages and flicked through to find out what everyone | | | | invested time, money and emotional energy into your |
| else was doing. I reasoned that if they were already | | | | idea. |
| doing it, that proved there was at least a market for | | | | |
| it!" | | | | 1. Investigate the marketplace thoroughly. |
| Charlie Stevenson. | | | | 2. Identify your customers and get to know their |
| Some exercises to get you started: | | | | likes and dislikes. |
| - List all the skills you have. | | | | 3. Identify your competitors - how many of them |
| - Think about the experiences you've gained in your | | | | are there, and how successful are they. Who is the |
| work and personal life. List the most significant. | | | | lead player? Who is second? Find out as much as you |
| - List any other hobbies and interest you have. | | | | can about them - collect brochures, leaflets and any |
| - Ask your friends/family for their impressions of | | | | other information you can. Test out their websites |
| your greatest strengths and skills. Ask them to tell | | | | and call their enquiry service or visit their shop/office |
| you honestly what you think your weakest points | | | | if it is open to the public. Analyse their service |
| are in terms of setting up your own business. | | | | product honestly and objectively. What are their |
| - Look out for gaps in the market. | | | | strengths? What are their weaknesses? |
| - Explore other businesses, and identify those you | | | | 4. How much is it going to cost to launch your |
| might be able to copy. Look for ways in which you | | | | business (that is to get the first product on the shelf, |
| could improve on the business in question. What could | | | | to serve the first customer or to provide your |
| you offer that they do not? How could the product | | | | service for your first client)? |
| service be improved? As noted earlier, finding the | | | | 5. Where is the money going to come from? |
| right idea means being honest about your own skills | | | | 6. Include money in your plan for contingencies. |
| and limitations. This is just as important as all the | | | | Consider what might go wrong - not just financially, |
| other factors considered so far, if not more so. | | | | but in other ways too. Plan for the unexpected and |
| Summarise your key business idea. What product or | | | | think through both the best and worst-case |
| service are you going to sell? Who are your clients or | | | | scenarios. |
| customers? Assessing Your Idea So you have your | | | | 7. Assess your businesses long-term potential. |
| idea... But how good is it really? Will it stand the | | | | 8. Visualise yourself running your business. |
| pressure of the marketplace? Are there enough | | | | |