- In order to start a new business, you need to decide on what kind of business you're starting in the first place. The number one step is to collect small business ideas and narrow them down to the right one.
- But how exactly do you narrow down to one idea when there are so many business paths you can take?
- In this article, we take a look at these five steps to choose a business idea that will work for you.
A week ago, I outlined some tips to help you get your creative juices flowing and come up with great new business ideas. You may have gotten one or maybe two in your head.
However, some of you may have had a creative landslide of small business ideas and now need help in narrowing down these ideas to a more workable number and learn how to choose a business idea that will work.
How to Choose a Small Business to Start
The first step of choosing a small business to start is narrowing down your ideas. Here are some ways to help you narrow down your list of small business ideas and choose the right one:
- Choose which small business ideas are FUN
- Bounce these new business ideas around
- Weigh the pros and cons of your small business ideas
- Which business ideas will people most likely spend money on?
- Pick the idea you are most passionate about
Narrowing down your small business ideas to select a few gets you to a more realistic set that you can actually work on. The thing about ideas is that if you don’t put effort and time behind them, they won’t get you anywhere.
Working on too many of them at the same time may leave you with half-baked products and services that your customers won’t like.
1. Choose which small business ideas are FUN
It’s a concept I got back in school. FUN stands for Feasible, Useful and New. Which of your small business ideas do you think are attainable given the amount of time and resources at your hands? Of these, which are the most useful? Lastly, pick one that is new or a new way of implementing an old concept.
2. Bounce these new business ideas around
It helps to get another perspective when trying to evaluate which are the best new business ideas to select from. Share these small business ideas that you have with people you trust. These can be members of your family, like-minded friends or business partners.
Listen to what they think about your new business ideas and discuss with them how your ideas can be improved upon.
Being able to openly discuss your business ideas with others can help you realise which of your ideas won’t work and which are likely to become a hit.
3. Weigh the pros and cons of your small business ideas
Evaluate your small business ideas objectively. What are the things that put a value on your ideas? What are the potential things that may add value to your business ideas?
On the negative side, find out what factors may bring down the value of your idea. Also, list down the threats that may decrease the value of your idea further.
These tests will help you have a bigger view on which is the best new business idea, how much work you may need to put into your idea and what sets it apart from the current offers in the market today.
4. Which business ideas will people most likely spend money on?
The goal of your business is to make a profit, and you can’t make a profit if people don’t spend money on your products and services.
If you are thinking about how to choose a business idea, put yourself into your customer’s shoes and imagine, if you had 10, 100 or even 1000 dollars, which one of your particular business ideas would you spend that money on? Bring in your family and friends and ask them the same thing.
This simple, small-scale market test will get you an initial idea of what business ideas may be profitable in the long run.
5. Pick the idea you are most passionate about
If you had to pick one from all of your small business ideas, which one would you rather work on? Which one are you most passionate about?
It is important for you to choose the small business ideas that resonate with you the most. Being passionate about something will allow you to stick through it even when times get tough. Also, your passion will shine through your employees and eventually, to your customers.
These are just some of the many ways that can help you with the issue of how to choose a business idea. Remember, in relation to small business ideas, it’ll be better to pick a narrow, very specific niche. This will let you skirt around and address the gaps left by the big companies giving you a better chance at making your business flourish and grow.
If you've decided on a business idea and are looking to take the next steps to turn your idea into reality, you can find a variety of information and resources on SavvySME including:
- Market research and positioning
- Refining your idea with business planning
- Business structuring
- Legal advice
We can also connect you with the right professionals and service providers to assist you.
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