Coming up with a good business idea is a challenging feat. Yet, if you manage to think up the next big thing, you’re opening yourself up to a world of success. While the thought of starting your own business may excite you, there’s one thing you must consider. New companies (as well as well-established ones) go bust every day.
Data shows that approximately 20% of new businesses fail within the first year. And by the time they reach the five-year mark, up to 70% of all ventures will have gone down the drain. If you’re a budding entrepreneur, the thought of failure is terrifying — especially if you have skin in the game.
Still, don’t let the risk of defeat stop you from following your dreams. Instead, use it as inspiration and motivation to do better prep. If you’re considering starting a company, here’s how to find a good business idea that will have the highest chance of success.
Identify One of Your Pain Points
The most uncomplicated way to find a good business idea is to identify one of your pain points (that doesn’t already have an available solution). Then, all you’ve got to do is come up with a product or service that could remove said pain point.
Think about Better Solutions to an Existing Problem
Alternatively, if you notice that some of your friends or family are experiencing a problem and having trouble solving it with existing solutions, why not consider ways to help them?
For example, understanding that small businesses couldn’t afford to rent the office space they needed, WeWork created that space for them. Now, professionals can rent a desk for as little as $400 per month. Its customers don’t have to commit to a lease for years. Plus, they don’t have to pay exorbitant prices for an unfurnished room.
Look at Existing Solutions and Find Ways to Improve Them
Sometimes, the best way to build up a successful business is to look at the solutions already available on the market. Then, all you have to do is explore ways to improve them.
For instance, take brands like Hello Fresh and Blue Apron. By figuring out that people wanted to cook healthy but were struggling to achieve the desired results by shopping at regular grocery stores, these brands figured out that an ingredient and recipe delivery service would serve their customers better. Essentially, both of these brands are online grocery stores. But, what separates them from the competition is the efficient and planned delivery infrastructure that gets customers exactly what they need when they need it.
Think about Existing Products and Find New Applications for Them
Sometimes, the best way to identify a good business idea isn’t to come up with a new product or service. Instead, it’s to recognize the untapped potential of an existing solution and then use marketing to turn it into a success.
Think about how the Apple Watch slowly transformed into a wearable health tracker, communication device, medical alert system, wrist calculator, fashion accessory, media remote controller, and so much more. And it all started with the idea of modifying the wristwatch — an invention that’s over 200 years old.
Explore Ways to Expand Your Business
If you already have a business, the best ideas will be those that will allow you to expand.
Ultimately, offering more products and services to your existing customers is a great way to meet their needs and improve your cash flow. Plus, it’s an opportunity to diversify your organization and ensure the longevity of your venture.
For example, a business that sells golf cart tires could do only that. However, by understanding that changing a tire necessitates knowledge and a few tools like lift kits, said business could also expand its offerings to provide existing customers with everything they need to take care of their electric vehicles. Moreover, by investing in some educational content, this type of brand could expand its reach, effectively attracting new customers looking to solve a pain point.
Keep an Eye Out for Trends
Most of the time, the best business ideas come to those willing to listen.
You don’t have to be a creative genius to identify a product or service that could be the next big thing. Instead, you just have to pay attention to the people around you.
So, if you want to start a new company but don’t know what you can offer, give yourself time to do some people-watching. Whether you do it by studying trends on Google or looking at how shoppers behave at the grocery store is up to you. What matters is that you keep an open mind and try to see the world through the eyes of the people around you.
Consider Sharing Your Expertise
Last but not least, if you want to start a successful business, consider the unique qualities and experiences you could share with the world. Ultimately, knowledge is priceless and many people would willingly pay to learn some of your skills.
So, if you have some valuable insights, why not set up a coaching business? It’s a great way to cash in on your experience. Plus, it doesn’t even have to be a full-time job. It can be a way to hone your mentorship and leadership skills and connect with people interested in the same subjects as you are.
Final Thoughts
Good business ideas don’t come out of nowhere. But if you know where to look and are willing to keep an open mind, they can be relatively easy to stumble upon.
So, whether you’re thinking about starting a company, want to expand your existing business, or simply enjoy coming up with solutions to people’s pain points, use the tips from this article. Who knows. You might just discover your new project or find that one piece of advice that could make you rich simply by taking a good look around you.
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