How to choose a business idea?

choons

This is a question for anyone who has launched a business. How did you know that your idea was the right business to dedicate time and money to start up?

I will start a business but don't know which ideas are worth pursuing. I have 5 or 6 A4 pages with a viable idea on each line but nothing jumps out as the one to roll with. I have done market research for some, made a prototype for another and started a small IT repairs gig which made a few quid. I feel like I need to believe passionately in the idea before I can give it 100%. Something that may help is a team of people to work with but unfortunately all my friends are wasters!

I'm 24 and currently work as an aerospace design engineer in the UK. Have some savings to invest and owning my own business my main goal in life. Any tips? Thanks

jimmii

Try do something you are passionate about as at the start it will almost certainly be tough and you will need to believe in what you are doing more than anything during that time.

What Ive noticed with a lot of people who are full of ideas but never actually start their own thing is they jump from idea to idea without fleshing it out properly, in a kind of fickle way.

The way it has usually worked for me, is I will have an idea about something, and I will get some inspiration that it could be really good. Then I'll discuss it with a few select people to see if they can pull it apart. If its still looking good then I'll sit down and spend a week or two writing a proper full length business plan as if Im looking for investment or something.
In that process you get much deeper into the idea and you tend to find more things that could go wrong, and more ideas to make it better. By the end of producing that plan you should have a much clearer picture what the risk is of doing it, now much it will cost, and whether you are truly inspired to do it.

For me being 'passionate' about something and being 'inspired' to do something are a bit different. For me it doesn't matter if Im passionate about the industry, the passion would come from it being a business with a lot of potential to do well. But we all take our inspiration from different things.

Sky King

Try do something you are passionate about as at the start it will almost certainly be tough and you will need to believe in what you are doing more than anything during that time.

I don't agree. How many people do you know that are passionate about radiators, or injection moulded plastic, or home insurance?

In my opinion you just need to establish if the project is viable. Then you can get all passionate about making money out of it.

jimmii

Sky King wrote: »

I don't agree. How many people do you know that are passionate about radiators, or injection moulded plastic, or home insurance?

In my opinion you just need to establish if the project is viable. Then you can get all passionate about making money out of it.

Its obviously not imperative but it certainly makes it easier when things are slow and just another thing that is worth considering. Obviously the most important thing is whether or not it is a viable business that you can make enough money to live off but if you can combine that with something you are passionate it is a factor.

pedronomix

The question posed is naive in the extreme! If I had a surefire idea for a business, I would do it myself or give it to one of my kids/friends whatever! Unless their talents, skill sets, experience and enthusiasm were properly matched to the project, they would fail and so would you, most likely. The key is to find the right fit for YOU, that task is yours alone to complete!

choons

This is good advice, thank you.

I do keep jumping around ideas. I'll try rating each in categories and then spending a day on some highest rated. From there I can spend time going into details if they look good. I have a week booked off work start of Feb so this could work nicely.

Most ideas are from hobbies and things I enjoy but money would be enough to motivate me if I believe it has potential.

pedronomix wrote: »

The question posed is naive in the extreme! If I had a surefire idea for a business, I would do it myself or give it to one of my kids/friends whatever! Unless their talents, skill sets, experience and enthusiasm were properly matched to the project, they would fail and so would you, most likely. The key is to find the right fit for YOU, that task is yours alone to complete!

Could you expand on how to find something that fits a person? Maybe an example of somebody who has certain traits and the business they have started.

pedronomix

They understand the business and this includes products, supply-side, pricing, customers/customer preferences, how to sell them and have the resources available to fund the business...... in short. I like to call it the Beedin Obvious!!

Meathlass

You need to systematically evaluate your top rated ideas.

Are your ideas a solution to a problem?

Is it a solution that customers are willing to pay for?

Will enough customers pay for it and at a high enough price so you can make a profit?

I use the below with clients like yourself

1. List your idea
2. List your potential customer segments
3. Pick the highest priority segment (who will pay the most)
4. What alternatives are they using today
5. How is your idea better than the alternative (do you have quality, price, feature differentiation)
6. Will they buy your solution

If the answer is no, move on to the next idea.

You need to be brutally honest with yourself and your ideas when doing this.