When the Coronavirus pandemic hit markets worldwide, businesses had to transition online to survive a new era of online business. This rapid shift to isolated production in turn empowered a style of business many thought had died out with industrialization- ‘Home based entrepreneurship.’ Starting a small business seems all the hype within the 20 something crowd, and it’s not for no good reason. A self-made small business is something that is entirely your own, meaning you don’t have to share the spoils with anyone. On top of that, the growth and mobility that comes with owning a home business is something that is unparalleled by any other type of business.
There’s just one big brick wall that a lot of aspiring business people hit once they decide that they want a home business.
THE BIG IDEA.
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You might have all the funding you need, a corner of your home you can run the business out of and even an MBA that helps you acquire all the street smarts. But without the right business idea, you might as well be looking to invest thousands into a sinking ship.
The right idea doesn’t have to be new, it doesn’t have to be unique and neither does it have to be revolutionary. Finding the right business idea is all about analyzing the market around you, finding a demand and an efficient way to meet that demand. This can be as small as a home bakery at a place where chain bakeries have a really high price point to being as large as a construction business where there are no established developers.
Either way, your business has to start somewhere. And finding the right idea is no small feat. If you’re having trouble finding the right idea, go through the following checklist for some extra pointers:
- Find a problem that applies to you and solve it
More often than not, your home business will be based out of and apply to the area you currently live in. That means whatever need or problem your business looks to solve, has to be a problem that applies to you as well. Find a solution to it and voila you have your business idea. There’s a few ways to verify if that idea works well:
- Does your idea apply to your neighbors or those who live in your community?
- Can you find a solution to the problem?
- Does your idea solve the problem to an appropriate degree?
- Is your idea cost efficient, meaning can your product be sold to an affordable price?
- Would you buy your idea?
Often, you’ll see that the solution to your problem isn’t unique, but is very area appropriate. Opening a Michelin star restaurant around a low income neighbourhood might sound like a posh idea, but a home cooking business is likelier to turn a better investment to profit ratio.
B. Find something you’re uniquely talented at
Sometimes businesses aren’t based out of an existing need, but rather out of a manufactured need. Businesses like pottery, art and knitting aren’t necessarily selling stuff that people need. These sellers aren’t looking to meet a demand that is existent in the market, but rather selling a unique talent that aesthetically stands out.
Most novelty items fall into this category. This can be anything from collecting and selling antiques to selling artwork out of your bedroom. To find an idea that belongs to this category, question yourself if you’ve got a unique talent that helps you stand out from 95 percent of the crowd. Once you’ve got your talent, ask yourself these questions:
- Is your idea unique enough, meaning does your talent stand out?
- Is your talent marketable?
- Does your talent market itself?
- Do you have the skills to market your talent or do you need external help?
- Does a market exist in your for your talent?
- Can you sell your talent at an affordable price point?
Once you’re done fulfilling these criteria, you must have some patience. All business requires patience, and that applies even more to businesses that are based out of talents rather than demands. Market your idea to the right crowd and unrealized talent becomes the best money maker you could possibly imagine!
C. Predict a future demand
Now this one is a bit more long term. Instead of finding a business idea out of a talent like in point A, this method of idea finding is about predicting the market. Do you live ina part of the world that is running short on drinking water? Then it is very predictable that your locality will have a huge demand for clean water within then next 10 to 15 years. Is your area up and coming with a large number of wealthy people recently moving in? An interior decoration business or a novelty item store should be the next big local hit.
These business ideas usually require larger capital and even better market foresight. Patience, once again is a key factor since your predicted revenue is almost never going to be met in the short term.
D. Almost anything
The truth is, almost never will your first business idea take off. The most you can expect from a first business is enough revenue to buy back your initial investment. Unless you’re really lucky or have identified a really special demand/ business idea, first investments are about getting to know the market and find your footing.
So, start small with something that you know will sell. It can be as small as a lemonade stand to as large as a home pottery class. If people are looking for it, even to just a small degree- you can make a business out of it.
The main driving force behind becoming a successful businessman is being fearless. Great ideas aren’t exclusive to successful people, and you might have the next million dollar business sitting idle in your brain. Take a leap of faith and start your own business today!