How to Pick the Right Small Business Idea

One of the most common questions asked by people who want to start their own small business is ‘how do I pick the right idea’? These are some considerations that need to be taken in to account.

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Firstly, what do you mean by right idea? People often think that business ideas fall in to one of two categories with the first being so called ‘financial successes’; or ideas that will get you rich. The second is a more personal idea, one that you have a passion or interested for and one that you want to turn into a business. What I often say to them is simple – why can’t you aim for both?

With this aside, there are certain pointers that work for both independently and must be considered and addressed when it comes to business ideas. No one is less important than another – whilst some considerations might take longer to work out or more resources, other should be quick decisions. Either way, they all come together to give you an idea that will lead you to the outcome you want.

Brainstorm ideas

This sounds pretty simple, but when you sit down to think about what idea your going to pick up and run with it becomes very difficult to pick one. Having an idea of what you want to do is a good start, a service requires different planning that a product.

You need to consider how much work you want to put it and what you want to get out of the business. If you’re really stuck for an idea, make a list of all of the things that annoy you throughout the day – make a note of all the times you’ve thought ‘I wish someone would invent…’ Of course, an invention or marketing a new idea is more work than something more mainstream, but can have a higher reward.

Is there something you’re really passionate about like baking or flowers? Then turn it into a business! There’s an old saying that if you enjoy what you do at work you’ll never have to work a day in your life. Turn your hidden talent into an idea and start thinking about what you would do with it.

Here’s a list of 100 business ideas if you are having problems getting started.

Research the best business plan

Now that you’ve got an idea, you need to research the best type of business plan. In the small business world there are 6 types:

  • Start-Up – a new idea or something that’s never been attempted. Also an idea that wants to start in an already established industry such as News
  • Growth Plan – One that outlines exactly how an established company will grow and develop.
  • Feasibility Plans – a plan that tries to break-down exactly who will use or purchase the surface and makes a decision based on the outcome of how to proceed.
  • Operations Business Plans – shorter term type of plan that works out how a business or company will operate over the next year or time specified
  • Strategic – provides you with an intuitive and complete map of exactly what the goal of the business is and how you will achieve them.
  • Internal – made for use within the business primarily as appose to being freely available to the public – it evaluates a project or business idea

Come up with a business plan

Once you know what business plan you need to use, you can easily research the best way to go about laying out exactly how you’re going to do it. Remember that business plans are vitally important in helping your business grow and is essentially if you are applying for a business loan with a bank or looking to attract investors. First things first though, get your idea and get your plan together!

Read my article about finding new ideas for your business.