By Shannon Power, 29th March 2022
The journey each entrepreneur takes to come up with a new business idea is a unique experience for every individual. A new and great idea can come from anywhere, sometimes it may take the intense analysis of market trends and consumer needs whilst others simply come from complete serendipity. Once you commit to an idea it is important to stay open and flexible to new trends. For example, one of our customers sells reusable coffee cups, however, it was later discovered that personalisation can be a key factor for customers when making a purchase decision. A small business idea was able to grow and become successful when the owners implemented a customisation tool to the ordering process on their website. This article will explore the many helpful ways to get you on the right path to finding your own successful business concept.
Letting Go of the “Perfectionist”
One of the first and most important places to start is by letting go of the mindset that you must discover something never seen nor heard of ever before. There are countless businesses in operation today, and it is unlikely that you will be the first to produce an idea or product that is brand new without a huge investment in research and development. Finding a new business idea and being the first to develop a new product or service doesn’t guarantee success. Remember, Google wasn’t the first internet browser in existence, they were able to take an existing concept and make it better.
Some entrepreneurs spend months and months trying to decide on the “perfect” concept, but end up wasting countless hours, energy, and money. This often results in the individual losing drive or passion for what they originally set out to do. Instead of wasting this time on being perfect from the get-go, trial and error can help you eliminate those possible dead ends. Often, the biggest setback in reaching success is the fear of taking that first step. Jump in – hit that ground running!
Focus on your Skillset and Experiences
It may sound cliché but sticking to what you know and drawing from your personal experiences will always have better results than attempting to develop a new business idea that you have no prior knowledge or expertise in – You wouldn’t open a bakery if you had never owned an oven! Entrepreneurs are far more likely to find success when they utilise the skills and knowledge that they already possess.
Many new products are developed to solve an existing problem and the best place to start looking is within your own everyday environment. Search for personal problems or mundane tasks that you think could potentially be made easier or improved upon. A straightforward way to do this could be through brainstorming. Make a list of your skills, hobbies, interest, needs, and problems that could be solved in your everyday life. By doing this you may be able to combine these aspects and discover the perfect new business idea.
The Importance of Research
Once you have identified the area or industry of choice, you can start delving deeper and begin research to find a niche or underdeveloped need within the industry. A good place to start is to conduct competitor research and build some case studies within your chosen industry/area. Competitor websites are the best place to observe what other businesses have to offer; however, you can obtain just as much helpful information by identifying what these businesses DO NOT offer. There are often many companies in all industries that offer the same products and services as their peers, without any unique and standout qualities. If you can identify a niche and in-demand additional quality or service, this could be incorporated into your business plan as a unique selling proposition (USP). Developing strong USPs will give the business a better chance of coming out on top compared to the competition.
Another place to conduct research is within the potential target audience. You have already identified your own needs and burdens, but it is equally important to understand the problems of those within your target market. Pay attention to what niche needs are not being met. What product/service complaints have they expressed? You may be able to find pain points and desires that could overlap with your own. It is also necessary to understand the buying behaviours and motivations of your potential target market, this will help you to understand and develop buyer personas.
Before fully committing to your business idea, you must confirm that it has potential and that your product/service is truly in demand. If there is no demand for your business idea it will be difficult to close sales and turn a profit. Another way to conduct customer research is through keyword research. The Google Keyword Planner can help you to review the popularity of specific key phrases related to your business. This tool can show the average number of monthly searches within your target location. If you find that the keywords related to your business have an extremely low number of searches per month, it may not be worthwhile to continue the development of this idea. Without strong demand for the product or service you wish to provide, it will be challenging to create a profitable business
Sometimes Smaller Equals Better
Whilst it can be highly beneficial to have high monthly keyword searches, it may indicate that your new business idea is not as niche or underserved as you previously believed. Developing a niche or small business idea is often the best choice for startup companies. Google Trends is an extremely helpful tool that can help you to analyse how the interest in your chosen keywords may rise and fall over periods of time or identify any potential seasonal fluctuations when it comes to demands for certain products and services.
By using this tactic, you may be able to focus on a small business idea with a decent amount of demand that has not been met yet. Whilst a smaller niche may mean a smaller potential audience, focusing on a specialised audience often leads a brand to more profit due to fewer competitors. Less competition and the ability to employ a more highly targeted marketing plan can result in your business being the first to establish a foothold in your niche market and allows for a dominant position on search terms.
The Next Step
If you have developed a new business idea and you are ready to start trading, you will need to incorporate a company. The Euro Company Formations team can facilitate company formation in over 70 jurisdictions within Europe and Worldwide. We can also assist with tax registration and corporate bank accounts, please contact us today to get started.