A Good Business Idea

A good business idea

A good business idea could be an invention, a new product or service, or an original idea or solution to an everyday problem. It might also be, a gap in the market that you can fill, a business related to the work you do already an interest or hobby that you can turn into a business.

Some of the best advice you can get comes in the form of “What NOT to do.”

It may sound a little cynical or negative, but it’s really the best way to learn from other people’s mistakes and avoid repeating them in your own day-to-day business activities.

A tried and tested business model: Some self-starters choose a well-trodden path - such as buying an existing business or rights to a franchise - which can carry fewer risks than going it alone.

Advantages: It is usually easier to get finance, as a market for the product or service will have already been demonstrated. A business plan and marketing method will be in place, and you should have valuable experience to draw on, many of the problems will already have been discovered and solved. A franchise comes with financial support too.

Disadvantages: Some businesses that are up for sale may be experiencing difficulties. Make sure you fully understand the reasons for selling, as you may need to invest quite a bit more on top of the purchase price to give it the best chance of success. The rights to a franchise or to sell particular products or services may be expensive. With a franchise, there may be a particular way to run the business that you have to stick with. Some franchises can never make money always consult a solicitor to look at the paper work before you sign anything as once you have parted with your money you are bound to continue with it. Therefore it can be an expensive mistake.

A specific business opportunity: Sometimes the possibility of owning your own business can come as a complete surprise. Perhaps you are offered the opportunity to buy out your employer, or take on a family business.

Opportunities like these are like any other business start-up. You still need lots of personal commitment, you may need to put your own money on the line, and you'll need to do some careful assessment to make sure that the business really is viable.

Advantages: Development, planning and market testing should already be in place. There may be established customers, a reliable income, a reputation to capitalize and build on, and a network of useful contacts. You probably already have expertise in the product or service and a good understanding of the business you're taking on.

Disadvantages: You may be taking on someone else's problems when you take on the business. Ask yourself if there are problems with the business, and if so, can you solve them? If you are buying out your employer, you may lose support services that you take for granted, now you won't just be responsible for your core role, but for everything else as well, such as accounting, staff management and payroll.

A change in circumstances, a major life change can often enable you, or push you - to set up your own business. Maybe a dramatic personal event kick-starts you into action or your job situation means that now is the time to take the plunge. Such changes might include unemployment, redundancy, a change of family circumstances, coming into money.

Advantages: A change in your circumstances might be an opportunity to start again or do something you've always wanted to do. Redundancy payments or receiving a lump sum of money can provide an opportunity to invest in the business. At its best, being your own boss can give you the flexibility to work around family commitments.

Disadvantages: Major life events can also be very stressful and are not always the best time to make big decisions. Starting your own business is unlikely to provide a speedy return on your investment and you should be prepared for a long haul. In the early stages especially, running your own business can mean putting in long hours and making sacrifices elsewhere in your personal life.

Many people have great ideas, but their businesses go under because there really isn't a market for their product or service. Thorough research will help support expectations about a business's success as well as uncover any holes in your idea.

Ask yourself these 6 questions:
1) What problem does my product or service solve?
2) Who will buy my product or service?
3) Why will they buy it?
4) Where will they buy it—specialty shops, large stores, mail order, online?
5) What do I need to charge to make a healthy profit and will people actually
pay that?
6) What products or services will mine be competing with?

Don’t let this put you off starting your business I have known many people who have started with very little money, they were so hungry for success that it focused their mind on how they would achieve the money they needed for their business once it was started.

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