How to Come up with a Good Business Idea (8 Best Ways)

Every successful business once started as an idea that bloomed into a big company. Some entrepreneurs are gifted in generating ideas, while most of them struggle. Without a unique idea, starting a business can be tricky. You may also have ideas, but what guarantees your new business ideas will succeed? Where can you find inspiration?

Fortunately, coming up with a great business idea doesn't have to be an uphill task. Successful entrepreneurs you admire today started at that exact place. Here at Incorpuk, we have professionals who you can speak with about your ideas and also get to learn ways to start your UK business today.

This blog unlocks how you can develop good business ideas that will work.

Coming up with Good Business Ideas

Brewing a business idea isn't a one-way route, but a series of methods to tap into adventure and see if the idea will work.

Here are practical ways of generating business ideas.

1. Solve a Problem

Many successful businesses start with a problem. If you have several things that frustrate you, chances are other people are feeling the same way. Identify several daily issues at your workplace, life, or area. Single out each of them until you're left with two problems without solutions.

Identifying these problems, think about possible solutions. That may help you start your desired business.

2. Ask Your Friends and Family.

Ask your friends and family about starting an entrepreneurial journey and seeking new business ideas. People with knowledge will support your venture. Those close to you will give you great business suggestions and advice on which business would fit your skills.

They may also know of a gap in the market that needs filling. An extra mind may spark your idea and open the door to capital funding or partnership.

3. Build Around Your Hobbies

You won't get any business ideas for baking if you've never been interested in baking. That's why looking for a business idea that fits your hobbies and interests is essential. Building your business around something you love and enjoy doing is more straightforward and enjoyable.

For example, if you love fashion and design, you can start your own clothing company. If you have a hiking passion, you could start a hiking tour company or hiking gear rental business. You won't get bored with Which business you venture into because you built it around something you love.

4. Make Tasks Easier

Many entrepreneurs look for new business ideas in the wrong places, like trying to create the most significant thing. Not knowing the most successful business idea could make tasks more manageable. When thinking of a business idea, think of a way you can make specific tasks more accessible and more efficient.

For example, if you're a realtor, you can develop a mobile app to connect landlords and tenants, eliminating brokerage fees or dealing with go-betweens. You could use the same app to help home sellers stage their homes or provide properties virtual tours.

Thinking of a way to make things easier, you can develop an excellent business idea with the potential to become successful without much effort.

5. Built on Products and Services that Already Exist

If you cannot generate new business ideas, you can still build on existing products or services in the market. Fortunately, with already existing products and services, you don't have to develop a new product; you will be improving what's already in the market.

Research what similar businesses are doing, their strong points, and what could be improved. The best way to do this is by looking at products or services you use daily and asking yourself, "What if?" if the product is available in my area. What if the item was more skin friendlier, cheaper, easier to use, or better quality?

6. Start a Business Based on the Trend

What's trending can provide a great business opportunity, be it a fashion statement, technology, or a customer behaviour change. Following and capitalising on new trends can result in a successful business idea. However, there are complications you must know of.

There is probably no market for this product or service currently. So, to make it successful, you must demonstrate a problem many people aren't aware of. Additionally, ensure it's a business that will stay for a long time and not something that will pass with a season.

As the trend starts to catch on, you can expect others to jump in and become competitors. Your primary focus should be establishing a solid brand and creating loyal customers early on to stay ahead of the copycats.

7. Innovate

Getting innovative is getting new business ideas from developing something new from an idea or an existing product. This requires you to be creative and willing to take risks to create a unique new business idea.

Remember, there's room to create something new that no one has ever seen. For example, if you are passionate about crocheting, you can identify an issue that hasn't been solved yet. Your product or service may not exist in the current market. Still, if you foresee a potential problem and effectively persuade others of its existence, you could lead a new business venture.

8. Conduct Market Research

Looking into the current market, you may find a source of new business ideas. This would be best if, through market research, you've narrowed your business idea to a specific industry, product category, and target audience. You can use various market research tools to unveil the gap in your current market.

You can achieve this by:

• Interviewing potential customers and organising focus groups.
• Refer to trade publications and industry reports for insights.
• Analyse keywords using Google Trends to gauge their historical and current interest levels.
• Follow influencers in the industry to gain insights into their audience demographics.

Form Your Company with Incorpuk Today

At Incorpuk, we will help you through the company formation process and file your confirmation statements to help your business stay compliant. Whether you're a UK resident or a non-UK resident, our team is ready to provide guidance and help you establish your company in the UK. Contact us here today.

Qualities of an Excellent New Business Idea?

There is no perfect business idea, but there are signals that will show you an idea is worth pursuing.

1. Clear Market Demand

If there's a product or service demand in your current market, you need to address it. This is because your new business idea will be a solution to target customers willing to pay for it.

2. Is it Scalable and Profitable?

Scalability and profitability are intertwined. An idea is scalable if:

• You can attract more customers
• Lower cost as it grows
• It can accommodate increased demand
• A profitable business idea is when revenue exceeds expenses.

Although your business may take some time to be profitable, it must show potential to grow and be scalable to reach profitability eventually. Without the ability to attract more customers or reduce costs, your business idea will face challenges in achieving profitability.

3. Fits your Goals

Do you want to monetise, grow and sell your passion or hobby? Understanding your entrepreneurial objectives is essential because not all new business ideas will align with your goals. Ensure the business idea aligns with your motivations; sustaining long-term commitment will be challenging.

4. Amount of Motivation

In other cases, your business ideas don't mean something you love (although it helps), but it must be something you're motivated to do. Whether you are driven by desire or goal, ensure you develop a skill set or assist others to do the same because being motivated is a source of inspiration during difficult periods.

Business Ideas Boosters for Entrepreneurs

A few routine changes can be what you need to start the flow of business ideas. Enough sleep, exercise and taking a lot of water are common recommendations that can address various issues, such as enhancing confidence and motivation.

Here are ideation techniques and straightforward exercises to stimulate your brain and generate new business concepts.

1. Break your routine

Step out of your usual routine by taking new routes, starting to go out, and trying other new things. Having a rigid routine may make you miss inspiration.

2. Doodle

Consider this as spontaneous visual brainstorming without any structured format. Begin drawing and fill your page with scribbles, images, and words from your thoughts. Don't worry about your drawing skills; the exercise aims to ignite creativity.

3. Observe people around and new surroundings:

look around you and note what you can see. Observing how people interact with their surroundings may spark a business idea to solve a problem.

4. Meet new people

Draw inspiration from individuals with diverse perspectives and bounce ideas off of new friends. Participate in entrepreneur social circles to interact with individuals eager to exchange ideas and offer feedback. You may even find your future business partner through this networking opportunity.

5. Read widely and consume diverse cultures

Read or listen to audiobooks, watch documentaries, or listen to music. Draw inspiration from diverse mediums that are not just limited to business-related content.

How to Create a New Business

After identifying the ideal idea with demand, start making your business a reality. Here are essential points in creating a business and running it.

1. Survey Customer Base

Addressing your customer base is a wise way to step into a business. You can do it with an email campaign, an online survey, or an open forum. This will help you market effectively, helping your start-up grow by building connections and fulfilling market needs.

2. Build a Budget

Ensure that all business costs are considered when creating your start-up budget. Various resources, such as product page design, will help you do things at a reduced cost or for free. However, you can't DIY everything, so you should include costs like:

• Store or office rental
• Staff
• Product production or manufacturing
• Interior design
• Promotional materials
• Production or Storage space rental

It's easy to underestimate the cost of setting up a business if it's your first time. Hiring a financial advisor to help you create a flexible budget is advisable.

Winding Up

Generating new business ideas, doing your research, and going through the business creation process can be an uphill task but a rewarding choice if you're goal-oriented. Organised and disciplined operating your business might be the ideal career for you. Use tools that will help you reach your business height and put your business on the path to success.