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In reality, discovering a great business idea can be a lot tougher than trying to mimic the big hitters. There are so many factors to consider—market size, customers’ purchasing power, competitors, location –we can see why many MSMEs have faltered within their first year of setting up. You don’t want to be counted among that statistic. So what do you do to find a business idea that’s truly worth pursuing?
Steps To Coming Up With A Great Business Idea
Here are six steps you can take to come up with a business idea that does well when implemented.Look For Problems
Ideally, businesses are about solving customer problems. Phones exist to solve the problems of communication; clothes exist to protect our bodies from the elements; cars enable us to travel over long distances within a relatively short time. The problem could also be that the existing solution isn’t good enough, or does not reach everyone who needs it. Or it may be too expensive for a lot of the people that it targets. Look for these too; they’re usually great points to exploit if you’re a business looking to enter a market.Consider Your Skills
Also, think about the skills you have. What do you know you’re good at? What do your family; friends and colleagues say you excel at? They could be the basis on which you build a business. This isn’t just about something you’ve learned on your own. It may also be skills you’ve honed at your past or present job. You may find a different industry from the one you’re in now, where your skills apply. While mulling this, also remember the first point about serving a market. Unless your skills solve a problem that’s widespread (or there’s a sizeable number of people willing to pay for your service), it won’t suffice as the basis for a business.Sign up to the Connect Nigeria daily newsletter
Think About The Solution You’re Offering
The solution here is something that solves your prospective customers’ problems. It’s the product or service that your skills can create, and which the customer will purchase. What form will that product or service take? How will it solve your prospective customers’ problems? How will it improve on currently existing solutions? You need to answer these questions early on so that you have a fair idea of the kind of business and product you’ll be building.Know Who Will Pay For Your Solution
Study your market. Find out what demographic your typical prospect belongs to (in terms of age, occupation, income levels, etc.). Ascertain that they are generally able to pay for the product you will be offering them. You can find these things out by looking at the current customer base of your would-be competitors. Look for signs like a high volume of demand going their way, or the business looking their way.Look At The Competition
Study your competition. Find out what their strengths and weaknesses are. Plan to match their strengths (at least), and provide service that’s strong where they are weak. Find out how to beat your competition in our article, 5 Ways to Make Your Business Stand Out From Its Competitors.Examine The Trends
The viability doesn’t rest on your ability to win against your competitors or your understanding of your customers’ tendencies. It also rests on the way the industry is going over the medium to long term. If the industry you want to do business in is growing, there’s probably an opportunity for you to grow as well. But if it’s in decline, you should think twice about investing in it.Final Words
When you’re pondering a business idea, don’t just settle for one that looks neat and nice. Look at it from various angles, including the ones we’ve mentioned here. If it still looks promising, you may go on to build the business. Featured Image Source: Realising AmbitionsGot a suggestion? Contact us: editor@connectnigeria.com
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