Monday, 17 February 2020

How To Generate Business Ideas

How To Generate Business Ideas

            Every business comes out of an idea. When you have a first vague thought about a business opportunity you need to develop it into a business idea. A good business idea is essential for a successful business venture. Finding a good business idea is the first step in transforming the entrepreneur's desire and creativity into a business opportunity.


A business idea is the response of a person or persons, or an organization to solving an identified problem or the meeting perceived needs in the environment i.e markets & community.

Your business idea will tell you:
  • What product or service your business will sell.
  • Who your business is going to sell to.
  • How your business is going to sell its products or service.
  • Which need your business will fulfill for the customers.
To be creative, you need to keep your mind and eyes open as you work through the principles of generating business ideas and opportunities explained above, and apply the techniques. 
Two things should however be noted;

  1. A business idea is only a tool;
  2. An idea by itself, however good, is not sufficient for success.

     Let me expanciate on the techniques explained above:

What product or service your business will sell? You business should be based on what you are good at. Maybe you have experience in a specific line of business or have been trained in a skill. The business idea will help you to focus on what you could do.

Who will buy your product or services? Your customers can be individual or other businesses. It is important to be clear who you intend to sell to.

How are you going to sell your products or service? If you plan to open a shop this is clear, but a manufacturer of service operator can sell in many different ways. 


Which need will your product or service fulfill for customers? Your business idea should always have the customer and the customer's needs in mind. It is important to find out what the customers want and to listen to your future customers when you work out your business idea.

          There are millions of entrepreneurs throughout the world and their testimonies suggest that there are many potential sources of business ideas. Some of the more useful ones are outlined below.

1. Hobbies/Interests
A hobby is a favorite leisure-time activity or occupation. Many people, in pursuit of their hobbies or interests, have founded businesses. If, for example, you enjoy reading, writing, or cooking, you may consider going into being a book reviewer, blogging, typist or catering
Another illustration, if you enjoy traveling, you may consider going into tourism - which is one of the biggest industries in the world

2. Personal Skills and Experience
Over half of the ideas for successful businesses come from experiences in the work place. Your skills and experiences are probably your most important resource. not only in generating ideas but also in capitalizing on them. For example, a mechanic with experience in working in a large garage can set up his/her own car repair or used car business. An individual who is well skilled in trading like stock exchange, or forex can set up a coaching session to train other on How To Trade In Forex or exchangers

3. Franchises
A franchises is an arrangement whereby the manufacturer or sole distributor of a trademark, product or service gives exclusive rights for local distribution to use there trademark, name, image, method of doing business and operating procedures. Franchising may take several forms. Apart from buying a franchise, one can also develop and see a franchise concept. 

4. Mass Media
The mass media is a great source of information.Newspapers, magazines, television, and nowadays the internet are all examples of mass media. Take a careful look, for example, if you are a teacher, you can set up a YouTube channel on the Internet for tutorials, you may be the answers to some problems not yet solved and with time you start generating money as while as still be earning from your working place/school. A comedian can set up a YouTube channel for comedy and by do so make people happy watching him/her act e.t.c.

5. Exhibitions
Another way to find the ideas for a business is to attend exhibitions and trade fairs. By visiting such events regularly. you will not only discover new products and services, but you will also meet sales representatives, manufactures, wholesalers, distributors and franchisers. These are often excellent sources of business ideas, information and getting started. Some of them may be looking for someone just like you.

6. Surveys
The focal point for a new business idea should be the customers. The needs and wants of the customer, which provide the rational for a product or service, can be ascertained through a survey. Such a survey might be conducted informally or formally by talking to people, using questionnaire, through interviews and through observation. 
You may start by talking to your family and friends to find out what they think is needed or wanted that is not available or dissatisfied with an existing product or service and what improvements or changes they would like to see.

7. Complaints
Complaints and frustrations on the part of customers have led to many and new product or services.
When you hear someone say "I wish there was..." or "If only there were a product/services that could...", you have the potential for a business idea. The idea could be to set up a rival firm offering a better product or service.

8. Brainstorming
Brainstorming is technique for creative problem-solving as well as for generating ideas. The objective is to come up with as many ideas as possible.
It usually starts with a question or problem statement. For example, you may ask "What are the products and services needed in the home today which are not available?"

When using this method, you need to follow these four rules:

  1. Don't criticize or judge the ideas of others
  2. Freewheeling is encouraged - ideas that seem to be wild or crazy are welcome
  3. Quantity is desirable - the greater the number of ideas, the better
  4. Combine and improve upon the ideas of others

Reasons for generating business ideas:

  • Business idea generation is a sine-qua-non (inevitable) for business.
  • Ideas are generated to respond to market needs.
  • Ideas are also generated to respond to changing fashions and requirements.
  • In order to stay ahead of competition.
  • To be in tune with latest technology so as to do things better.
  • In response to product life cycle.
  • In order to spread risk and allow for failure

Hope you learnt something(s) from this article? If you have more hint on "How To Generate Business Ideas", drop a message in the comment sections..,

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