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How to Find and Develop your Business Idea

The very first step to starting your own business is of course a good business idea.

You first have to think about a good business idea for quite a long time. It is much more than just a spontaneous idea that comes to mind in the shower or over a beer with friends. Often, the initial euphoria clouds the vision. A good business idea not only includes a solution to a problem but also thoughts on how to make money with it.

Your business idea is the core of your business concept. Develop it step by step into a business model and later describe in your business plan how you will implement it. (To see how to layout your business plan, check it out here)
Over time, this idea may change and evolve. Sometimes sticking to the original idea could be a blockade.

blog post cover business idea finding developing

So how can you recognize a good business idea?

A good business idea…

  • solves a real problem or solves it better than existing alternatives/companies (is there a real need for your product or service?)
  • fits the personality of the founder and
  • meets a market large enough to generate good money from it.
 

How do you find a business idea that fits you?

The following questions will help you find a suitable business idea:

  • Why do you want to start your own business? (your motivation must be high at any point)
  • What are you particularly good at? (the most important things are soft skills – hard skills can be learned with time or added by business partners)
  • What do you enjoy doing? (only with passion you can achieve big dreams)
  • What is important to you in life? (set your goals and be ambitious)
 

If you have answered these questions and are always on the lookout for unsolved or poorly solved problems, you will soon get closer to your business idea. Do it like brainstorming: write down everything that comes to mind, even if it is far-fetched. Then evaluate and sort it out later!

As you can see (and already know), businesses can be started in a wide variety of industries: For example, you can open a restaurant, start an online business, start your own business doing a particular craft, etc.

You don’t have to invent the wheel to become successful. The most important thing about your business is you, your passion for it, and the people you build it with.

 

 

Develop your business idea

Your idea also forms the basis for your business plan and thus for a functioning company. Always focus on the principle that your product or service offers a benefit to potential customers. In doing so, as already mentioned, your idea does not always have to be completely new. Further developing ideas or transferring them to a new market can also be a good concept. Often it is also about simply doing it better than others have done so far. Ask yourself the following questions beforehand:

  • Is your business idea viable?
  • Who is your target group and how can you reach them?
  • Do you need other partners to help you realize your idea?
 

Let’s put your idea on paper. For this, you deal with only 3 aspects:

  • With your offer,
  • the resulting customer benefit and
  • your core capabilities
 

1. To find out, ask yourself the following key questions:

  • What are you good at? (your core skills)
  • What do you offer? (your product or service)
  • Why does your offering excite customers? (the customer benefit)
 

2. Here are some more guiding questions to get a clearer definition of your idea:

  • What are you/your team particularly good at that has value for your customers?
  • What skills do you need to build?
  • If necessary, do you have the legally required qualifications (master craftsman’s certificate, certificate of expertise, or similar)?
  • What exactly do you sell to your customers with your offer? (In a restaurant you not only sell the food, but also the service and the feeling of it)
  • What tasks do you take from your customers or how do you make their life easier or more beautiful?
  • Why will your offer be useful for your customers?
 

3. And if you already want to get a bigger overview of your idea, be sure to go through this checklist as well:

  • Does it solve a problem? Is there a real need for your product or service?
  • Is there another product or service that solves the same problem?
  • How big is the market for your product or service?
  • Can you describe your product or service in 25 words or less?
  • What’s your potential cost to start the business?
  • Can the people who need your product afford it?
  • Is your product patentable?
  • Can this business’s product or service lead to other related products and services?
  • Who are your potential competitors?
  • Are the potential risks and rewards acceptable?
  • How will you fund your business?
  • Do you want to run this business yourself?
  • What support team will you need for your business?
  • (Who will manufacture your product?)
  • How exactly would people get your product or service?
  • How will you market your product or service?
  • Once purchased, how much support will you have to provide customers?
  • Do you want to be an entrepreneur or do you really just want to make money?
 

4. Also do go out and ask other people for their opinions and test whether your idea would be accepted or not. This could help you a lot.

Here you can record and sort all your results!

 

We know that are a lot of questions, but try to go through as many questions as possible and be as specific as possible when answering these questions. Trust us here, it is better to get a clear picture at the beginning so that you are not surprised later.

 

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All information is without guarantee.