Published 25 July 2018 Category: Compass Tips, Startups, Business, Careers

How to come up with a Business Idea for your New Startup

Having trouble coming up with innovative business ideas? You are not alone.
For most of us, the idea generation process for a new startup is a time-consuming task and a nearly-impossible feat.
An estimated 600,000 businesses are started each year in the US alone. Yet there are millions of startup ideas that never make it to the market, simply because they don’t go beyond the thought process and keep the potential entrepreneurs from taking the crucial first steps.

The most innovative business ideas are generated through problem solving.

Have you ever wondered how Joe Gebbia and Brian Chesky came up with the idea that started AirBnB or how Larry Page came up with Google? It wasn’t luck that led them to their innovative business ideas.
It was the recognition of a problem and its pain points which drove them to their startup business ideas.
Here’s how you can come up with innovative business ideas for your new startup:

1. Become an observer

If you seek ideas that are unique, you need to start looking at the world more closely and notice all the things that cause frustrations or lead to inefficiency. Most of the times, the biggest opportunities lie in the imperfections. Your goal should be to identify the problems that can be solved but are generally overlooked. Become a student. Find what’s missing and what makes a task tedious.

2. Identify the pain points

Instead of remaining oblivious to problems, train yourself to notice the missing pieces and gaps that make things ineffective and frustrating. Start by watching your family and friends who complain of similar issues, people at work, others in public or even online. What are they complaining about? What do they need help with? By talking to people about their pain points, you will learn what’s missing which will gear you up for research. Most great business ideas have come from private lives but that does not mean that every single problem will be the next big business idea. However, keen observation and reflection on the pain points will enable you to prioritize and list down the problems which are worth researching and testing out.

3. Brainstorm possible solutions

Once you have identified the problem worth spending time on, you will have to work on finding the most effective solution. There are several factors you will have to consider before you come up with or identify the most viable solution. Think through carefully about each solution and list down how you will produce it, associated costs, production scale, supplies required and where you will find the people or things required for production. Pricing and revenue models are also some factors you will have to consider. How do you intend on selling the solution to prospective consumers? Is the solution practical enough or cost effective enough to gain demand? Evaluating various startup business ideas against a set criteria will enable you to narrow down the most promising solution.

4. Validate your idea

Before you dive headlong with your new venture into the market, you need to validate your idea from sources outside of your friends and family circle to see if your idea is good enough to sell. Is your idea really solving real problems? Would people pay for it? Answers to such questions will enable you to gain valuable insight, helping you understand what your solution is worth and if potential users will pay for it. This will give you a clear sense of demand for your online business idea before you spend money and launch it in the market. Talk to possible suppliers, potential customers and if possible, do some smoke testing before running with the actual product in the market.
If after all the digging and research you still have a good feeling about your innovative business idea, then run with it. Often times the biggest barrier to success is taking this first step.

Startup business ideas can come from literally anywhere.

Whether it’s an emerging trend you noticed, a specific market gap that caught your attention, a special personal skill, something that thrilled you during your recent travels or a drive to help others through an inventive system – as long as it’s addressing a pain point which you have personally experienced, it should be the perfect motivation for your new startup.

Need help with getting your business off the ground? Speak our company formation experts who can guide you from applying for Visa’s to setting up your payroll.