One of the most fundamental decisions for any aspiring entrepreneur who’s about to start own business is the choice of business idea. But to come up with idea is only a part of assignment. The next step is to carefully evaluate it, extract all pros and cons and make a decision on whether it is worth your time and money. Sooner or later every entrepreneur understands, that management, marketing and sales strategy are important, but the quality and profitability of business idea is what determines the success of your project.
Here we have a three step system that will help you to choose a business idea:
- Determine a business market. Think of what business will be suitable for you, according to your expertise, knowledge and education. Try to extract a business niche that is not yet overcrowded. For example not just any handmade business, but business on creating unique handmade indoor water fountain etc.
Do not stop at one idea, consider few options and compare them to choose the most promising one: take a sheet of paper, draw two columns and write down all pros and cons of each idea. Analyze the results.
- Think of a business model. The best option is to come up with a completely new innovative business model, but that’s really tough. If you are not that creative, then there are two main ways: to use existing business model that successfully works on this market or to take an existing business model that works good in another market and try it out in your business niche (eg. – first subscription model was used only for newspapers and magazines, but now this is a very common business model for selling any product)