Behind every successful and unsuccessful business is an entrepreneurial business idea or business ideas of potential entrepreneurs. Here I will cover one crucial business ideas creation process.
I want to note something about business ideas before we continue. They are not only for new businesses or startup companies. They are also something that is a part of the “must-have category” for existing businesses. They can exist in the form of a photography business plan or a sophisticated strategy for boosting sales.
The new business ideas will energize every business. They will recharge business potential energy whether it is a new – startup company or an existing business. Having business ideas will mean you have the ground for future business improvements. You have the vision and your dream and are ready to work on your achievements.
1. First Step of Business Ideas Creation Process
How do you get business ideas? This is a question that many enthusiastic entrepreneurs want to know the answer to. Simply, your business ideas are the results of your entrepreneurial creativity. But, the real problem is that creativity is not always present in your entrepreneurial brain. Because of that, another question is where you can start brainstorming business ideas (you can read more about 40 tips to brainstorm business ideas). What is the first step?
These questions are essential to you as an entrepreneur and the basis of this business ideas creation process. Even if you know the answer to the first question and you have a bunch of ideas, they will not guarantee the success of your startup. You need to do something. So, the second question is also essential to answer. You want the brainstorming process that will give you the best results.
The Brainstorming Process
The first step of your business ideas creation process is the brainstorming process. Begin with the following questions about you as a central point in your future entrepreneurial journey.
- Education – knowledge – What do you already know better than any other person on the planet?
- Hobby – What do you like to do the most not related to your job and money-earning activities?
- Passion – What do you like to do that makes you feel delighted?
A combination of your knowledge acquired from your home culture, formal educational system, experience, and your free activities as a hobby and your passion for something may bring you excellent business ideas. You can leverage knowledge accumulated from your education to formulate new ideas for your business and apply theoretical concepts in developing these ideas.
Passion is your strong positive feeling about something you really want or something that has a strong attraction for you.
5 Steps to Ensure the Success
Five steps to ensure success when you find yourself at the first step of the business ideas creation process of your entrepreneurial journey are:
- Think about a possible business that is fun for you.
- Always dream big dreams.
- Trust in your ideas.
- Find leaders in the field.
- Commit to implementing your ideas.
Because of that, your business must be funny. It will be funny if you have enough knowledge to implement all your business tasks, implement them as your hobby, and have a passion for that business.
You may have great business ideas but:
- If you don’t know enough about them, your business will be convicted to death.
- Also, if this business is not fun for you, you will close the door very soon.
- You will not be committed enough if you don’t have a big passion or desire for what you need to work.
So, you must view every business idea at the beginning through your knowledge, hobby, and passion prism. This will help you decide what is the best business idea for you.
Conclusions for First Step
- You must have knowledge about the business idea you want to be part of your next business venture.
- The realization of the idea must be funny for you and look like your hobby.
- You must have a passion for that business idea.
2. Second Step in Business Idea Creation Process
When you come to a business idea that satisfies three criteria or requirements from the previous step, you can continue with the second step of the business ideas creation process.
The second step is to analyze that business idea through the prism of your potential customers. Or, asking and answering the question: is this business idea something that solves some critical problem on the market?
If you want someone to buy your products and services from your company, you must ensure that your products and services satisfy your customer’s needs. Also, it would help if you were sure they could solve those people’s problems. Contrary, if your products and services don’t solve the customer’s problems, you can’t expect them to buy from you.
For example, we want to buy a car because:
- We have a need for means of transportation. If your need is only this (transportation), you will probably buy a cheaper car that will accomplish only the transportation function. It is because all cars have this primary function to satisfy customers’ needs.
- We have a need for prestige. You want to have a new beautiful car with which you would be noticed by other people. You will use that car secondary as transportation means. With this need, you meet two different problems: prestige and transportation. In this case, you will buy a more expensive car that looks great and will be noticeable.
Is Your Business Idea Something That Will Satisfy Somebody’s Needs?
When you think about business ideas, you must consider whether that product or service will satisfy somebody’s needs and how they will satisfy those needs.
You must create the needs you can satisfy or problems you will solve for potential customers. If there is no actual problem or need, the business will not exist.
How much the needs and problems that you can satisfy or solve are higher, the higher the business potential energy of that specific business idea will be.
How much the customers’ desire and “pain” for solving the problems are more significant, there will be much higher business potential energy inside those business ideas.
Conclusions Related to the Second Step of Business Ideas Development
We can conclude the following:
- For each of your business ideas, you must know how to implement them in practice.
- Implementation of your business ideas must be funny as your hobby.
- You must have a passion for that business idea.
- The business idea must solve some problems of the customers or your potential customers.
- Higher needs and problems that businesses can solve will mean higher business potential energy.
- How much bigger potential customers’ desires and “pains” are for solving those problems, the business potential energy will also be higher.
3. Third Step of Business Idea Creation Process: Target Market
Let’s continue with the business idea creation process that you can use to develop the business from your dreams.
At this level of your business development, it will be helpful to think about the target market for that business idea.
What is the target market?
The basic idea of a target market included in your idea is that a product cannot be for everyone in the general market. You should know your target market if you deliver a specific product or service.
The target market is one small segment of the market where your business idea will need to put the whole focus. It is a term that an entrepreneur will hear a lot. It is the group of people that will be a central part of all your marketing efforts.
We can say that the target market is the type of person that will want or need your product or services. But, defining it is the first step of establishing a niche market. Entrepreneurs must know that this niche market is not in the interest of big companies. And because of that, you must check your new business idea with the selected targeted or ideal customers.
How to identify your target market?
Identifying your targeted customers is vital for testing new business ideas and later for customizing your marketing and advertising campaigns. The goal is to generate as much revenue as possible for your products or services.
The process of identifying a target market is called market segmentation. To identify it, you must make market segmentation. You can make market segmentation when you divide your market into small parts that have the same or similar characteristics as:
- Aging (for example, they will be persons between 20 to 50 years old)
- Sex (for example, they will be females)
- Geographic (for example, they are living in specific areas in specific towns)
- Revenue (for example, the target market will be a segment of the market that has revenue of more than 60.000 $)
For example, If you sell toys, your ideal or targeted customers will be mainly people with children.
It is better to use a combination of these market characteristics. For example, your target market will be [Specific town], males and females between 20 to 50 years old, with revenue above $60.000. With a statement like this, you can add problems or needs that you want to satisfy with your business idea.
This statement will help you later when you start preparing different marketing elements and sales forecasts for your business. Your sales forecast must start with your target market and selected market segment as a number. If you calculate the desire of the customer to solve the problem, leads, and competitors, you can easily forecast the sales quantity.
This is a fundamental question for all entrepreneurs, especially when they are at the dreaming stage. In such a way, the whole entrepreneurial energy and force will focus on that target market. Later, you will focus your marketing activities on that specific target market. This is the basis for applying the 80/20 rule to increase entrepreneurial effectiveness and efficiency.