Choosing the type of business starts from getting a business idea, which is not a one-time thing but a process that undergoes several steps. In other words, developing a good business idea begins with finding one. Many people wishing to start their small businesses get stuck deciding the kind of business and the rationale for such a decision. Thus, business idea development is a cornerstone aspect of having a successful business in place.
Steps to develop a business idea
You need to pass several steps before you have your business idea in place and launch your business. Key essential steps include the following:-
1. Ideas Generation
The first step in developing business ideas is generating ideas from which a
strong business idea is born. In this step, you should write down every idea that
comes to your mind. Whenever you think of an idea, please do not let it perish;
instead, jot it down. You can use a week or so to do this exercise.
You may ask yourself about the source of such ideas. In most cases, the
ideas come from your daily life, environment, people around you, and
activities. You can also generate ideas from the challenges that your society
faces. Ensure to have a whole page or more concepts before thinking of the best
2. Best idea determination
You need to select what you consider the best idea from your list of ideas. This step may involve a go and return aspect since what you may feel the best at first may be the least. Thus, do not destroy the other list even after deciding and selecting the best one. It would be best to keep the other ideas as you might need to return them.
3. Exploring the idea
This step involves a bit of market research o make sure that you understand all the business variables related to the selected idea. It would be best if you found out all that you can about your idea; including what the existing market offers and what you consider adding to the market; know your top competitors and what are you planning to do to outsmart your competitors. You also need to go the extra mile and know the resources to turn your idea into a business.
4. Cleansing the idea
From your research results in number 3 above, refine the selected idea. If the idea does not work, go back to the rest of the list and make a second selection. Do it this way several times as practically necessary until you make your final decision.
5. Idea testing
As part of the process, you need to test your idea against the market, competition, and availability of customers. That is to say; you will have to undertake preliminary market research on the workability of the selected best idea. If your idea is a physical product, you may need to create a prototype and release it to the market.
6. Identify your Market
Having tested your product or services, you need to identify your market. At this step, you need to decide who your customers are, their ability and readiness to pay, and how much they will be interested in paying. In other words, before launching your product, it is viable to undertake in-depth market research to determine who is seriously interested.