Before you can begin to develop a business plan, you’ll need to spend time deciding on your business idea, and at this stage it’s important to be very strategic. What does the current business environment look like? What are the opportunities? Even if you already have a business idea in mind, keep generating new ideas at this stage, just in case a better concept presents itself.
In this activity, you’ll generate a list of potential business ideas and begin to access their potential.
As you begin to generate ideas, keep these rough rules of ideation in mind:
Focus on generating lots of ideas
Avoid judging your ideas as good or bad at this stage
Build on existing ideas to generate new ones
Be visual—use the scratch paper to draw your ideas, if needed
Step 1: Make a List of Ideas
On a word processing document, create your list of potential business ideas.
Consider ideas you’re interested in, passionate about, and probably already experienced in. Write down everything you can think of during this stage.
If you already have some business ideas in mind, list those first.
If you feel like you’re running out of ideas, remember to focus on ideas for things that customers not only want, but also need.
While there is no set number of ideas that need to be generated to produce a viable one, generate at least 10 ideas that meet the criteria.
Step 2: Determine the Potential Opportunity
Go back and review each idea. Consider the potential opportunity for each idea.
Next to each idea write two to three sentences describing if you think the idea is viable or not. Comments about the potential product or service can include:
Who you think will be the customer?
Why you think customers will buy the product or service?
Why you think the product or service is needed?
Are resources available to create the product or service?
Is there potential to make a profit with the product or service?
Are there any constraints to creating the product or service?
Step 3: Narrow Down Your List
After evaluating each idea, narrow down your list to the top three ideas that you believe have the most potential for success.
Consider why these ideas stand out compared to the others you listed.
Think about which idea aligns best with your skills, interests, and resources.
Step 4: Discuss and Evaluate Your Top Ideas
Discuss your top three ideas with friends, family, or mentors to get their feedback.
Consider doing market research to determine if there is a demand for your product or service.
Evaluate the competition for each idea and determine if there is a unique selling proposition for your business idea.
Consider the scalability and sustainability of each idea in the long term.
Step 5: Choose Your Final Idea
After discussing and evaluating your top ideas, choose the one that you believe has the most potential for success.
Consider your passion for the idea, as well as your understanding of the target market and competition.
Remember to be open to changing or adjusting your idea based on feedback and research.
Once you have chosen your final business idea, you can begin to develop your business plan and start taking steps towards turning your idea into a successful venture.