How to come up with a business idea that will succeed.

“If opportunity doesn't knock, build a door” -? Milton Berle

Hey. Matt here.

You’ve probably already figured out what we’re going to discuss today. And, regardless of if you have a stable 9-5, or if you’re an experienced entrepreneur looking for the next big thing, remember that there’s a difference between 'just an idea' and a viable idea.

And, it goes beyond simply ‘feeling’ that you’ve got the right idea. You’ve got to validate it as well. The fact that your idea matches up with your passion might be great but, unless there’s no demand there's no money to be made here. So, if people won’t pay for it, then there’s no money to be made here.

Let’s explore how you can get an idea that CAN make you money.

“So, I can’t simply jump into implementing any idea I think of?”

Sadly, no. The thing is, if you’re starting a business, one of your reasons to do so may be to make money. That, as well as other values, might be important to you.

However, for you to be able to make money, you need to validate your idea. From making sure there is demand for it to ensuring that people will pay for the solution you’re thinking of developing. Whether it’s a rework of an existing product or service, or it’s something new, that’s up to you.

What’s important is that you make sure that the people you’re doing it for, want it.?

However, before we even get to that stage, first, we need to be able to source good ideas.

So, Ideas. Where can we get them from? ideas with potential. For a moment, let's forget about all of the complicated stuff, and let’s just focus on trying to figure out how to get good ideas.

One thing you can do: Look at your day-to-day routine.

Are there any trends you’ve noticed or any thoughts that have popped into your mind? Have you made any observations about a lack of a product for a specific problem in any market??

For example, reliable, compact power banks that are enough to charge your phone a couple of times, and are affordable as well as durable.

Maybe you’ve got a skill that you can apply to a different field.? Ie. an aerospace engineer using their knowledge to design drones to be used in agriculture.

At this point, your ideas don’t have to be perfect or viable. Right now, you just need good ideas. That's it.

Another thing you can do is look for gaps in the market.

Are there products out there that can be improved on? Could you embed a tire puncture kit into a portable 12V air compressor so that motorists can DIY their vehicle to the nearest repair shop? Could you introduce meal delivery services for people with severe dietary restrictions?

Once you’re done with your self-analysis, look at the products that already exist. What can you improve? Can you come up with something better? Something cheaper? Make notes about whatever comes to your mind.

You can also brainstorm things.

Let’s start from scratch. You need an idea, right? Okay. Ask yourself four questions:

1. What products or services do you pay for? Solar panel cleaning? Personal Cook?
2. What skills do you have? Can you cook? Are you innovative and creative?
3. What do friends think you have a knack for? Are they always surprised by your creative solutions to seemingly-complicated problems?
4. What do you do with your time off? Do you read the news? Do you tinker with old electronics?

Jot down whatever comes to mind, take a break, and then come back and look at what you wrote. Whether there’s something you do that’s better than most people, or something you’ve observed that others haven’t, there’s potential for you to get into the game.

“Okay. Suppose I DO come up with a couple of seemingly viable ideas. What now?”

Let's say you’ve identified a gap in a market. Or you've come up with a service people might want. Now, you’ve got to test if that idea is even viable.

Coming up with ideas will be an ongoing process. Now, it’s important to figure out how you can validate that idea, to figure out if it has potential.

“Wait, so I’m going to do this for all the ideas I shortlist?”

Well, it’s not going to be a complicated process. If you’re able to convince yourself that the idea will make money, that’s when you’re going to move ahead with things and consider building an MLP, a team, etc. Simply validating your idea is something you can do yourself. No worries.

So, this is a three-step process:

1. Market Research. Figure out what similar products or services exist. Why are they successful? Where do they fall short?
2. User Research. Collect Qualitative and Quantitative Data. interviews, hard numbers, everything that’ll help you decide.
3. Building an MLP. A Minimum Lovable Product. A product with core features that work.

The very first thing? Market research.

Coming out with a new OS for computers? Start with researching Microsoft and Linux. Why are they successful? Study the team behind them. What have they done that makes their products so successful? Why are they so widely accepted?

Doing this will help you do two things:

• Firstly, you’ll be able to figure out if there’s a NEED for what you’re going to introduce. Will billions of people and numerous software developers change their operating systems and software workings, simply to accommodate an OS that has a minor feature that no one else has? Probably not.
• Secondly, you’ll be able to see what and who you’re up against. Maybe you do have a chance, if there’s a gap in the market that you can fill. Maybe everyone’s dealing with their problems until an actual solution comes out.

If your idea survives this, on to the next round.

You’ve done your market research. But what do people think?

Do interviews. Try to understand your audience's problems, specific to your idea’s industry or niche. Observe them in their natural environment, to get a contextual understanding of the problem.

You’ll be able to understand if the problem they're facing is pressing enough that they’d jump to a proper solution as soon as they find one or if they’re simply dealing with it, in exchange for something better.

Collecting stats, asking a variety of people, setting up surveys, and collecting both qualitative and quantitative data will help you make data-driven decisions, rather than just intuition-based ones.

Do you want to make a business around this? Sure.

Is there money to be made? That’s what market and user research help you with.

If you see a need, and you feel like the people would benefit from your solution…

Go for it. Build a minimum lovable product. A product with barebone features that your audience will like. Ie: A subscription-based healthy food delivery system. Over time, you could add personalized nutrition coaching, access to a community as well as fitness coaching.

The benefit here is that you can put all your research and intuition to work with the minimal effort required to test if the idea will work, or if it won’t stick and needs to be reworked. That way, you get to validate your idea, without having to put in the effort required to roll out a fully developed solution.

If your audience likes it, then you can consider doing that. Otherwise, you’ve successfully crossed off an unviable idea without committing yourself and realizing too late that it won’t work.

“But what about the business model Matt?”

Subscription-based. Buy-one-donate-one. Membership-perks. Whatever the model you use, figure that out when your idea is validated. Once you’re sure something will work and can make money, then you can decide how you’ll make your money.

Setting up a grocery chain perhaps? You might want to make something attractive ie bread and chicken so cheap that you’re losing on it. However, you more than make up for your loss in profits from the crowds that offer attracts.

And, after all, it’s a process.

Once you validate your idea, you’re not done. You now need a team, financing, a company, different skill sets, and a mindset to see this to completion.

However, you don’t get this from day one. It takes time. So take things step by step and go from there. And if there’s any way I can help or if you’ve got any questions, feel free to send them my way and I’ll see how I can help.

Till next time, keep building,

Matt