How to Come Up With a Good Business Idea in 7 Steps

If you sell a product, you need an inventory function in your accounting software to manage and track inventory. The software should have ledger and journal entries and the ability to generate financial statements. All businesses, other than sole proprietorships with no employees, must have a federal employer identification number.

The thinking is that it’s much easier to sell a $1000 product to a few business customers than it is to sell a $10 product to hundreds of consumers. Whilst this may be true, don’t let it restrict your thinking. There are millions of profitable businesses that make just a few dollars per sale. If you’re seeking investment for an idea, you’ll need to persuade investors that the market you’re targeting is big enough to generate a good ROI. The problem is that when you go for a big, broad market, it’s harder to break through the noise and reach potential buyers. A friend of mine co-founded a social network for finding suppliers and building business partnerships anywhere in the world.

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Startups may also be able to get loans from alternative lenders, including online platforms such as Kiva. The best business structure for your business will depend entirely on what kind of company you form, your industry and what you want to accomplish. But any successful business structure will be one that will help your company set realistic goals and follow through on set tasks. To find potential partnerships, search for businesses in your industry that complement what you do.

Keep This in Mind..

Sponsorships are one of the best ways to start a home-based competitive gaming business. Companies will pay you to play their games and stream it to your audience. Gabriella and Andrew Morrison started their home-based business by packaging up their expertise around tiny-home living. They sell courses and plans on StrawBale—operating everything from the comfort of their cozy, non-traditional house. If you have a teachable skill, you not only can share that knowledge in forums to get your name out there, you can also turn it into online courses. There’s an audience for just about any desirable skill, whether it’s English as a second language, advanced marketing, or everyday home maintenance hacks.

How to generate business ideas with LinkedIn

While many existing products and services are designed to do just that, it doesn’t mean every potential way to meet a need has been thought up. Take the reusable water bottle industry as an example of the most competitive markets to enter, yet each year more companies are launching their own version of bottles. That’s because these businesses are fulfilling an ever-growing hydration need.

Make sure being part of your network feels good and offers something meaningful. Read more about small business grants here. This will make the people in your network want to reciprocate and add their own value. Angelou Ezeilo (quoted above) discovered this when building the Greening Youth Foundation (GYF). GYF is a nonprofit dedicated to getting underrepresented young people into environmental careers. Connections play a vital role in growing GYF, Ezeilo explains.

Protect Your Business Idea

This advice — to focus on problems you personally have — can be seen all over the internet. It makes some sense as it reduces the risk of creating a solution for a problem that doesn’t exist. It also helps you understand your customers, which is important when designing and selling your product. If you’re a 50-year-old accountant thinking about launching a mobile app for teenagers, you’d better do some serious research to make sure that you’re addressing a real need. Having a website can give you a head start in collecting people’s email addresses, or doing
SEO marketing to help your website rank in Google earlier rather than later.

From pet owners to vegans to gamers, there are plenty of passionate communities you can create products for. Maybe you recently traveled abroad and came across unique products that aren’t readily available in your market but that you sense an appetite for. Or maybe you’ve zeroed in on a niche market and know the perfect way to serve it. The best way to get a loan for a new business is to approach banks or other financial institutions and provide them with a business plan and your financial history. You can also look into government-backed loans, such as those offered by the SBA.

Wherever you fall on that spectrum, make sure you understand your client’s needs and check out the competition in your area. An Airbnb manager manages property listings and bookings, provides customer service for guests, and organizes cleaning and maintenance tasks.

For tech business ideas, mention the innovative technology that sets your concept apart. At the end, include a call to action, such as the amount of capital required to launch. I want to also leave you with a tutorial on online business ideas and 50 different websites where you can make money. For example, Internet/tech businesses typically require the founding teams to have a tech background. Food-related businesses require culinary or hospitality industry background. Product-centric companies require ability to make great products and sell them. Some businesses need to raise a lot of money while others need to get a lot of publicity.

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