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How to generate ideas for a new business

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Tarmacking is a term familiar to many young graduates. This job hunting process can be quite challenging, thus forcing many to consider other money making avenues in life such as small business ventures.

This may be a good alternative but it is not a breezy walk in the park.

Picture this, if you want to buy a car, you cannot think about the idea one night, walk to a show room and buy a car the next day. You must first think about the type of car to buy, its cost, uses, security and maintenance. A wise person would get this information before deciding to buy the car so that upon purchase, there are no panful regrets.

Similarly, starting a small business requires careful thinking and evaluation of the proposed idea before venturing. A good idea is one that provides effective solutions to problems, efficiently meet people’s needs and wants and has profit making potential.

Therefore, to discover some brilliant ideas you will first need to do your homework. Study the world around you to see which gaps you can easily fill and emerging trends or societal changes to anticipate.

new business idea
New business idea. Image from http://ideas.businesxxl.com/promoting-a-new-business-ideas/

Here are the three main ideas that are often pursued;

1. Mainstream Idea

This is a conventional business idea that offers already available general products or services such as supermarkets, wholesale shops and convenience stores.

2. Niche Idea
This involves selling and distributing specialized products geared toward specific markets. The niche business owners understand the market needs of their customers so well as their customers are willing to pay higher prices for products or services.

Businesses in the niche category include drug manufacturers, specialized hospitals or old nursing homes, beauty products and special automobile spare parts stores.

These businesses have well defined loyal customers and tailor made products and services thereby making their markets more difficult for competitors to penetrate.

3. Entrepreneurial options
Entrepreneurs often bring new unique products or services to the market or improve on existing knowledge, ideas, products or services by adding value.

To succeed, entrepreneurs are driven by self-ambitions, risk taking, confidence, achievements, courage and determination. These qualities drive them to desire things that are different from ordinary performers.

A practical idea that has great potential will need legal protection through patent registration, otherwise, the uniqueness of the idea is open to competitors’ pirating and copying, which is a major challenge facing many entrepreneurs in developing countries.

All the best in your brainstorming. Here are some points to consider when deciding the most appropriate business idea to pursue;

• Choose a business idea that uses your existing knowledge, practical skills and experience. It is better to do what you have practically done and you are qualified in.
• Choose a business idea you have an internal drive to perform. Such businesses should be enjoyable and motivating.
• Sell what you believe in and have confidence and experience that it is good.
• Choose a business that has profit making potential in order to continue operating.

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