So, you feel you’re in a good place to start something fantastic for and by yourself. However, the daunting question is, how do you come up with a great business idea?
These seven hacks might help you towards finding your first business idea.
1. Trade being original for being being better
It’s a myth that an idea is not a good one just because there’s competition. If you have an idea that no one has ever come up with, you may be sitting on a gold mine or a complete dud (statistically, the latter is more likely).
Think up a list of businesses that you find interesting and inspiring, and try to focus on how to make it better. McDonald’s didn’t invent the burger and Facebook was certainly not the first form of social media.
Don’t be discouraged. There are countless examples where someone took an original idea from elsewhere and made it brilliant.
2. Maximise your skill set
Many new business owners flop because they venture into something unfamiliar. Think of that friend who traded their day job to realise the dream of opening a restaurant or a B&B, with no experience in running either.
Those stories rarely have a happy ending.
Now, this isn’t to say that people shouldn’t try something entirely new. But, being an entrepreneur is about taking calculated risks and it is hard to calculate risks when you don’t know the ins and outs of the industry that you want to be in.
3. Solve a recurring issue
Look around you and you might spot something in everyday life, be it at home or the office, that could be made easier by a new product or service. Ask around and see if others face the same problem.
If you find an issue that no one else has been able to solve, there’s probably a market for it. It could be absolutely mundane but if it drives people bananas, your solution is going to be a huge success.
4. Import ideas from overseas
People may be well-travelled these days but there is still a myriad of fantastic products and services in one corner of the earth that is virtually unheard of in another. This is an awesome opportunity.
Take advantage of your discovery and market it in your area. You may even find a new way to present this product to better suit local clientele’s taste.
What’s splendid about this method is that it’s been tried and tested. If you are super diligent in local market research, you will be able to attain success without having to squander money and time developing something from scratch.
5. Reach for perfection
If you have a workable ‘maybe’ idea, try pivoting it to make it something potentially amazing. Take the example of Instagram.
It started out as a very basic app which let users check-in at particular locations, make plans for future check-ins, earn points for hanging out with friends, and post pictures of the meet-ups.
It wasn’t very popular so the founders investigated exactly how their customers were using their app, to see how they could improve it.
What they discovered was that their users totally ignored the app’s check-in features. However, they were crazy for their photo-sharing features and… the rest is history.
6. Make things cheaper
Think about all the stuff you’ve bought over the years that is slightly cheaper than the “branded” goods – from bags to tissues to biscuits. Again, don’t reinvent the wheel.
Look around at some of the offerings of big market players and see if you can produce a similar product for much cheaper. Look for local or overseas suppliers that would be willing to cut you a deal.
Think of it this way – if everyone who needed a vacuum cleaner could only buy a Dyson (Dyson vacuum cleaner costs at least RM2,500), a lot of us would be sitting in dusty houses.
7. Find the hidden niche
Customisation is one niche area that is hard for big players to take part in. It’s too fiddly and it doesn’t make enough profit for big names to bother with. Customised products always have more appeal than uniform ones – who doesn’t want to have something unique?
A Bain & Co survey of more than 1,000 online shoppers found that while less than 10% have tried customisation options, 25% to 30% are interested in doing so. That is a HUGE market.
The survey also showed that those who had customised a product online, engaged more with the company. They visited its website more frequently, stayed on the page longer and were more loyal to the brand – what more could you ask for?
A word of caution.
Your very first business idea may not be as magnificent as you’d imagined. Or it may swallow up a lot more time and money than you had initially bargained for.
Don’t get discouraged. The thing to remember is to make sure that, if you fail, do it fast and cheaply. Search for a better opportunity or a way to quickly pivot your original idea.
Rome wasn’t built in a day – important work takes time. But keep the faith. With perseverance, grit, ingenuity and confidence, you’ll get there!
This article first appeared in The New Savvy.
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