A business idea is like the blood of a company. It is the essential part of a business that drives everything and keeps everything going. It needs to be unique with a huge potential to capture a considerable market.
Still, many businesses fail soon after they start because most of their ideas are commercially viable and cannot sustain for a long time. ICTSD noted that 90% of startups in Australia Fail. It is worth remembering that a business idea should not always be a million-dollar idea. Still, it must be able to satisfy a wide range of audiences.
Likewise, this article will help you understand the steps in developing the Perfect Startup Idea. We will also tackle some opportunities you can explore and increase your chances of developing innovative and viable concepts for a startup.
What makes a good business idea?
With the complexity and significant competition in the industry today, coming up with a business takes a lot of work with patience. You need to actively seek information about the industry, trends, new issues, and technology to create a unique solution that can resonate with your target market. You need to look into the commercial perspective, develop a business model, and test your product.
However, there will be a time when you realise that the idea that you turn into a product is not viable as you thought. So, what makes a good business idea? Read on as we break down how to choose a startup idea:
- It does not need to be unique but can capture part of your target market
- Different from what the current company in the industry is selling
- Solves a gap in a market and serves a purpose
- Able to generate profit and viable for commercial use.
- tHas potential for growth
How to make a good startup idea?
Suppose you currently have a good idea, but you are unsure if it is viable for commercial and stability. Here are seven concrete steps by step guides on developing an idea.
STEP 1 – Define your primary goal
The first step in developing the Perfect Startup Idea is defining your main goal and objective. Clearly define what you aim to achieve as it can affect the choice of business you will venture to. Then, ask yourself what you enjoy.
Building a startup requires a lot of work, and you will be spending a lot of time with it. Thus, it’s necessary to work for something you are passionate about and willing to sacrifice many things. Lastly, consider your strengths. Although you will be hiring people in your business eventually, you will work on it alone from the start.
For example, they work in finance but are good at communicating with people. You can create an idea for financial advising or financial coaching.
Ensuring that your passion, goals, and strengths are aligned can help you with any future issue or sudden lack of interest in your startup.
STEP 2 – Focus on existing problems of society
Next, you need to identify existing societal or market problems that are still unresolved. Since you are just starting a business, you need to make sure that you deliver something unique that people can use.
Brainstorm new ideas by asking yourself the following questions
- What voids in society need to be filled?
- What are the current needs of your niche’s industry?
- Are there any unresolved issues?
Then, research any needs for that solution. See if the current businesses are not meeting this need. In addition, don’t believe that all ideas are already taken. In this time and age of technology and digitalization, market and demand constantly change, giving businesses opportunities to create new products and concepts.
And when identifying the need, combine the goals you listed in the first step and see where you can fill these industry gaps.
STEP 3 – Research and analyse relevant market
As you identify potential needs to align with your goal and passion, it is time for you to do market research. You need to understand your target industry and consumers. Learn as much as you can about recent developments on the market and see if any of them can help you develop your idea into a product.
Next, look into the demographics of this industry’s consumers, any law or regulation limiting your service, possible recent discoveries, new tech, and any even market setbacks or losses. You can do this by constantly reading news and articles on the industry or visiting online forums, attending a conference, or even talking to the people in the industry.
Meeting up with people currently working in the same industry can help you understand any potential challenges you meet and how you can avoid them. Most people will happily share information with you. And you can even possibly build a partnership or invite investors for your startup.
Likewise, you can also identify your target market or consumers in this step.
STEP 4 – Look for competitors
The fourth step in developing the Perfect Startup Idea is analysing your competitors. After doing market research, it would be easier for you to identify your competitors. Competitive analysis is a great way to predict how your business will be after a specific year. In addition, you can locate any new aspects of the industry.
In addition, try to determine why customers are buying their product. Is it the price? The quality of service? Are there any unique features in their development?
STEP 5 – Create and design your mockup
Today, developing ideas and business opportunities are not reclusive on paper and sketches. Consumers and investors now demand something that they grasp and are tangible. Thus, most companies create mockups or simulations for their product. It helps them have a strong product vision and stay close to the customer.
To start, you should transform your rough wireframes. Incorporate your team members, target market, action items, and developments so far in your wireframe. Then, put yourself in your customers’ shoes. Who are you pitching for, and what do they want to see? Align your answers to these questions in your mockup. Also, consider aspects such as color, branding, etc.
Then, it’s time to create your prototype. You can create attractive design mockups on design tools such as Adobe Photoshop or Figma.
STEP 6 – Execute a market survey
Lastly, when developing the Perfect Startup Idea, you need to conduct a market survey. You need to make sure that your product, after its launch, will be patronized by your target market. You can do a market survey on websites such as survey monkey to create a questionnaire and post the link to your social media account. It is a great way to get many answers without geographic boundaries. You can also offer bonuses to the respondents to invite more people.
Another alternative is to conduct face-to-face focus group discussions. It is where you invite people from a particular location or demographic for an interview to discuss your products or services. It is also a great way to demonstrate your mockup or prototype to your target market. In addition, FGDs can help you achieve the following:
- Gather honest feedback on your product
- Find out their accurate impression of your product
- Practice marketing strategies to sell your product/
STEP 7 – Develop your final product
Last, you can now finalise and develop your product. After gathering the data, survey, and information, you can now implement and tweak your idea accordingly. Just make sure you are still sticking with your business goals and capability.
In addition, you can also identify any people you need in your company. You already have a clear picture of what you need to develop in this stage. So, you can quickly identify roles that you need to fill and recruit.
Ready to validate your idea?
And that’s it! These are the seven steps in the business idea development process. Make sure to follow these essential steps. Do not hesitate to also tweak this guide according to your need. And remember, if you can’t do this on your own, there is no harm in asking for help.
If you need help creating and validating your idea, contact Flexilabs!