Industry

How to Choose the Right Business Idea?

It’s 2022 and more and more people want to be their own boss. The choice of becoming an entrepreneur is a commendable one. It contributes to the economy, creates more jobs, and relieves a person from 9 to 5 routines. But more often than not, people cannot define where to start. It is like having a number of ideas or none at all. Either way, uncertainty is one of the biggest hurdles to starting a business. In this article, let’s look at some of the best ways to match expertise with an idea for a successful business venture.

Steps to Choose the Right Business Idea

There are a lot of factors that should be considered while starting a business. It is not always about what’s in trend or following the heart. There are several essential factors to consider, such as, market planning, product viability, etc that determine the success of any business. With that said, here come some of the must-follow steps before etching a business plan.

The 5-Year Plan

Before brainstorming for a business idea, an entrepreneur should do some self-reflection. And that starts with asking one important question. Where do they see themselves in 5 years? What do they want to achieve out of it? Is it profit maximization making a social impact or driving for a change? To sum it up, the passion of the entrepreneur should determine the course of the business.

The Work-Life Balance

Many people choose to start their own business to have a flexible work life. But essentially, that is never the case. At least not initially. Setting up a business is no easy task. It requires a lot of detailing and work which essentially offsets the employed jobs. So, if family time is a priority, make sure to find a business that does not require constant monitoring.

Matching Skills and Expertise

Many people make the mistake of entering a business sector they have little idea about. It is important to focus on a business with matching skills and expertise. A person does not have to be a master of their craft, but it is important to at least know the basics and find the push to learn even more.

Test Out the Waters

There is a term in business called MVP. It means Market Viable Product. Before launching a business, it is essential to find out the demand for the end product. For example, setting up a luxury watch business in a low-income area will not attract customers as much as it would in an area with a high median income. So it is important to conduct a proper market assessment before going on with the business.

Reinvent the Wheel

Not every idea needs to be a breakthrough one. There is a common misconception that without a completely fresh idea, it is not possible to survive in the long run. Rather a business can take inspiration from what already exists and try to make it better. For example, the food delivery apps in Bangladesh. Foodpanda, HungryNaki, Pathao foods were all founded consecutively in a short period. Yet each of these startups has its own unique feature which makes them a strong market contender even though they provide virtually the same service.

Try a Simpler Approach

The main focus for a new business should be to reduce complexity. The more complex a business is, the more risk gets associated with it. Try and think of a go-to product or service that is easily accessible and something the people are willing to pay for. There is no need to develop multi-service or products from the get-go. Test out a product or service and then focus on scale-up. The new peripherals will come up as it is.

Get On from Get-Go

Do not spend too much time planning and assessing. Think of a business idea that can be started right away. It does not have to be a full-fledged established business. This point is tailing the idea of testing the waters. Test out the idea in its bare form with little investment and effort. If it shows promise, then go all out. There is no such thing as a hunch behind a perfect business idea.

Check for Profit

As a business, the aim should be to get into profit-making as soon as possible. Yes, there are examples like Uber which took a decade to break even. But businesses like Uber relied heavily on investments. What if the business fails to secure investment? The key here is to jump to money-making as soon as possible. So that any investment risk can be eliminated.

Scalability

This is often ignored while stumbling upon a business idea. The general consensus is that every business is scalable. And that is true to some extent. However, not every business is scalable equally. A business that solely focuses on serving a specific demographic cannot attract new customers from other demographics. And that ultimately hinders the scale-up process. Before hitting on an idea ask what are the long-term plans with the business. If scalability is of priority, the business should be something that is universal or can cater to a large base.

Cross Matching with Resources

A business is hardly ever a one-man thing. It requires a team, investment, planning, and a whole lot more. Ask whether all these resources are available at hand. A business that requires a physical office will require a minimum investment for rent and management. The people are also an important factor in this regard. Make sure there is competence and expertise match with the idea. A business can still get by with basic knowledge and growth mentality. But it is sure to fail if the management is clueless about the basic processes.

Final Thoughts

Study shows that a human gets approximately 6,200 random thoughts and ideas in a single day. For an entrepreneur, does all of these make for a great business idea? Truth is, it does not. A business idea needs to be tried and tested to make sure it is viable and scalable. There is no shortcut to becoming successful with a business. It only comes with proper planning and a structured approach.

Source: United News of Bangladesh