NEW BUSINESS IDEAS

Looking for New Business Ideas

When looking around for business ideas, bear in mind that these could be based on any of the following approaches:
A manufactured product where you buy materials or parts and make up the product(s) yourself.
A distributed product where you buy product from a wholesaler/MLM, retailer, or manufacturer.
A service which you provide.
Bear in mind that most good business ideas are not completely original. 4
If you concentrate on pursuing ideas involving existing products in existing markets, you run the risk of being exposed to severe competition. If you focus on new products in new markets, you might find yourself too far out on a limb.
You must narrow your search to specific market or product areas as quickly as possible. For example, the "food business" is too broad a search area. Do you mean manufacturing, distribution or retailing, or do you mean fresh, frozen, pre-prepared etc. or do you mean beverages, sauces, confectionery etc.? It is better to pursue several specific ideas (hypotheses) rather than one diffuse concept which lacks specifics and proves impossible to research and evaluate.
Generally, you should always aim for quality rather than cheapness. Be very cautious about pursuing ideas which involve any prospect of price wars or are very price sensitive; of getting sucked into short-lived fads; or of having to compete head-to-head with large, entrenched businesses.
Observe consumer behavior:
What do people/organizations buy ?
What do they want and cannot buy ?
What do they buy and don't like ?
Where do they buy, when and how ?
Why do they buy ?
What are they buying more of ?
What else might they need but cannot get ?
Look at changing existing products or services with a view to:
Making them larger/smaller, lighter/heavier, faster/slower
Changing their color, material or shape
Altering their quality or quantity
Increasing mobility, access, portability, disposability
Simplifying repair, maintenance, replacement, cleaning
Introducing automation, simplification, convenience
Adding new features, accessories, extensions
Changing the delivery method, packaging, unit size/shape
Improving usability, performance or safety
Broadening or narrowing the range
Improving the quality or service.
Be on the look out for:
Emerging TrendsFor example, the population within your area may be getting older and creating demand for new products and services.
Expanding Market NichesFor example, local industries may be outsourcing more of their services.
Try the following approaches to locating ideas and suggestions:
Brainstorm with your friends, associates
Ask people for their ideas
Use one idea to spark a better one
Read relevant trade magazines (local, national and foreign)
Skim through trade directories (local, national and foreign)
Above all, open your eyes wide and try to spot the obvious gaps. By all means be inventive, imaginative and original in your thinking but stay market- and consumer-orientated rather than product-obsessed. We all know stories about people inventing a better mousetrap and never getting a nibble from the market!!

Discuss products/services with prospective customersWould they buy from you, at what price, with what frequency etc.? Why would they prefer your products to the competition?
Find out what they really think - there is a danger that people will tell you what they think you would like to hear. Listen carefully to what is being said; watch carefully for qualifications, hesitations etc.; and don't brow beat respondents with your ideas - you are looking for their views.
Assess the market using desk & field researchHow does the market segment (by price, location, quality, channel etc.)?What segments will you be targeting? How large are these segments (in volume terms) and how are they changing? What are the price makeups/structures? What market share might be available to you bearing in mind your likely prices, location, breath of distribution, levels of promotion etc.?
Analyze your competitionWho are they and how do they operate?Are they successful and why?How would they react to your arrival? What makes you think that you could beat the competition? At whose expense will you gain sales?
Consider possible start-up strategiesWill you be able to work from home or part-time? Will you seek a franchise or set up as an in-store concession? Will you start by buying in finished products for resale as a precursor to manufacturing? Will you contract out manufacturing? Will you buy an existing business or form an alliance? Could you lease or hire equipment, premises etc. rather than buy?How will you stimulate sales?