How to Choose a Profitable Business Idea. See the 7 tips to Choosing a Profitable Business Idea. You will need this tips if you want your business to stand a taste of time.
Many people start businesses only to close them before it is one year. For others, the ideas they have about running profitable businesses will remain in their heads. They will never do anything about them.
Each day business ideas flow through your mind. Some are useless while some are good, but fear of the unknown stops you from starting.
In this post, you will learn how to choose a profitable business idea, by using areas that interest you and work experience to pick that profitable business, identify future customers desires and know how to raise funds to start a business.
By the end of this article, you will discover that picking a profitable business idea is easy, if it satisfies an essential need in a unique way.
Let us begin the process and learn how to choose a profitable business idea right away.
1. Identify Your Area of Interest
Using your natural talent to chase a goal in an area that interests you will give you a lot of joy.
Secondly, you will be able to pursue the goal tirelessly and give your time and energy out of sheer love. When you are in this mood, the task becomes easy as you give your best and if needed, work without pay.
Now, begin to look for how to turn that interest or goal into a business. This is one way to choose a profitable business idea. If you can create a business from the task or goal you enjoy so much, and support it up with your work experience, you have found a profitable business idea.
2. Consider Your Experience
You had gained experience in a certain field or in various jobs. The knowledge you got from the interesting places you had worked or endured accumulate into a skill you can use to run a successful business.
If you look within you, you will find that you have many business ideas in your mind, from work experiences. The problem is that you do not value them. What you call ordinary experiences are real solutions to problems people have, but you have refused to see them.
If you are looking for how to choose a profitable business idea, look inwards, and mix, your talent with experience to create a solution that fills a specific need.
3. Find a Specific Need and Fill It
Another way to choose a profitable business idea is to find a specific need in your locality where people are hurting, and think of a way to satisfy their need cleverly. Use your love, interest, pain, and experience to find exact cure for what is hurting the people, and then start a business that sells the treatment.
For your business idea to make profit, it must heal a pain in the society. This is the real reason for creating it. If you cannot find a specific area where the proposed business beats others in the same market, you do not have a profitable business idea.
Therefore, what you should do is to find a way to confirm that a market actually exists, for the service or product you are going to sell so carry out a research.
4. Carry out a Research
Let us assume you had a hunch that many starving people, would line up to buy your product or service. It is time to test that idea because you do not have any guarantees that this starving crowd, truly exists or that they will buy from you.
To confirm whether the market exists, carry out a research. Use your competitors to test your potential customers. How do you do this?
Use a survey, to measure the service your competitors give to their customers, test how loyal the customers are to the brand, and find out the number of needs your future competitors are yet to meet.
Next, get the number of unsatisfied buyers who are willing to go to another supplier, if there is a close substitute in the market.
You can carry out the sample survey by using a questionnaire or the internet, and get users of the product to take part by giving them an e-book. After analyzing the research, you will know what decisions to take.
To help you make good decisions, give honest answers to the questions below.
5. Answer few Questions
Ask yourself the following questions.
- what is your comparative advantage and score yourself on a scale of one to ten
- do you have a unique angle that will give more value to your customers
- are you going to serve your future customers the way others are doing it
- are you willing to stay in the business for five to ten years
Truthfully answer these questions and if you discover that the market truly exists with willing customers who are ready to buy, except for the problems that have given you the opportunity to enter the market, take the next step.
You can only take this step if you can serve the likely customers better than your competitors could, by writing a business plan to help you choose a profitable business idea.
6. Write a Business Plan and Pitch It
Writing a business plan is not hard. What is a business plan? It is the story of the opportunity you see in the market, and how you are the most qualified person to take advantage of it, by serving your potential customers well, and giving good returns to those who will fund the business venture.
Your business plan must state in real terms the following very important information.
- the company history, its owners and the opportunity they saw
- what is the working capital structure
- what are your value propositions
- what are your critical success factors
- what are your marketing plans
- what is the result of the sensitivity analysis – is the business viable
You may wonder who will write the business plan.
You are the most qualified person to write the business plan. No matter how crude it is, write it. Go to the internet and download a free sample. Copy it and then take it to your friends, family, and bankers to give you the money to start the business.
Why must you write the business plan when you are not an accountant?
The business idea is from you. It is your vision for the business. Moreover, if you write the business plan, you can easily answer any questions from your family, friends, banker, or venture capitalist and explain the business to them, with authority.
7. After Choosing Business Idea
To start the business and take it to the level where you hope to conquer the market leaders, you have to be a step ahead. Go and get more knowledge. Train yourself to know everything you need to, about the business and follow your business plan.
Try to become the person people go to for creative solutions. Be the customer’s first choice, and competitor’s point of reference. Strive to stay relevant in the industry and be the company to beat by serving well.
If you have read this far, by now you would have learnt how to choose a profitable business idea. Even if you had not, here it is. Open a business using your natural talent and work experience, and make sure you serve a starving crowd in a unique way.Buy and Sell Bitcoin in Nigeria - Register for free on Luno
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