Identifying business ideas

HOW TO IDENTIFY BUSINESS IDEAS - Marius Brandow.

The best time to start a business is NOW! Opportunity knocks during any economic cycle. It’s obvious that you must have the right business idea before starting a business. Always remember that a product or service MUST satisfy a need!

7 Steps to take in identifying new business ideas:

Step 1: Take stock of yourself. Statistics prove that new businesses have a much better chance of success if the person starting the business has skills and experience in that industry. It’s also very important that the potential business suits the owner.
A great way of taking stock of yourself is to write your CV:
List your education, training and experience as you would in a normal CV, and also include your interests, hobbies and passions and any other special skills and talents you might have. Now analyse your CV and compile your personal SWOT analysis.

Step 2: Keep track of local, national and international events, news and trends. The Soccer world cup will be hosted in SA in 2010 and opens up a multitude of opportunities. There are many other events and trends that create opportunities, just like the current credit crunch did for debt counsellors.
A great way to keep track of events, news and trends is to follow the news and new legislation. The best way to develop your business ideas is to read great entrepreneur development publications such as the Your Business magazine.
Looking at your personal skills and experience then combining that with what’s happening in the world, you will be able to identify a trend or event that you can capitalise on.

Step 3: Inventions, patents and copyright. It’s obvious that if you can make a lot of money with a patented invention which is properly protected. It’s also common knowledge that owners of copyrighted material or software can make a lot of money from it – isn’t that right, Mr Mark Shuttleworth?
People often forget the thousands of archived patents and inventions that are not being taken to the market. These un-used inventions are just waiting for someone to exploit them. Maybe you don’t have the ability to invent something but you might know how to market and sell it profitably. This can benefit you and the inventor; who might lack your business skill.

Step 4: Look at adding value. This means taking a raw product and putting it thru a process that’s changes it and adds value to it, then selling it for a worthwhile profit.
A typical example would be someone who buys fruit and vegetables in bulk and then repack it into smaller packs to sell in convenient sizes. The fruit and vegetables can also be chopped and peeled, adding even more value to it.

Step 5: Investigate other markets. A popular product or service that are in abundance and inexpensive in one area, might also be popular and profitable in another area. You can make money by taking these products or services from one area to another.

Step 6: Improve current products or services. You often say: “I can do that much better!” There is huge opportunity in improving a popular product or service and marketing it properly.

Step 7: Getting on the bandwagon. A sudden increase in demand for a particular product or service creates opportunity. It’s like the current need for debt counselling, or the demand for generators during the ESCOM electricity crisis of 2008.

List as many business ideas you can. Write them down as quickly as possible including the big, small, silly, unviable, unachievable or unrealistic ideas. Apply your creativity and write down at least 5 business ideas. Stick the list up where you can see it often.

THERE ARE OPPORTUNITIES EVERYWHERE!

The next step is to do something about it.
Entrepreneurs understand what it means to take calculated risk. Before you take the risk, you have to calculate it by determining the viability of the idea and by planning how to get the new venture off the ground. A viability study includes speaking to people who are currently in the industry as well as potential customers. Planning how to get the new venture off the ground includes writing clear, detailed goals and plans. Use your creative, innovative and hard working nature and take that calculated risk.