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How do I decide on a business idea?

  • Blog
  • 31 March 2017

Running your own business is an attractive prospect. Capitalising on a new business opportunity, driving your own growth and being your own boss.

One of the initial hurdles, however, is deciding on the right business idea. We explain the things to keep in mind when putting your idea for a business together.

How do I decide on a business idea?

Assess the market

One of the first things you’ll need to do when deciding on your business idea is research the local market for gaps and openings that you can take advantage of. A market entry report can be a huge help in doing this, providing an overview of a business sector. This can help you to discover if there a service or product that is needed but not yet provided by any other business in your area.

If so, you may have identified the perfect business opportunity. However, even if similar businesses already exist, that doesn’t mean you have to go back to the drawing board. What you do need to do is think how you can deliver that service better. Focus on being able to:

  • Offer some unique benefit with your business and working methods
  • Provide the same quality for a lower price
  • Complete the same amount of work more efficiently

It should also be noted that “doing what you love” isn’t necessarily a sustainable business model. If there is no room for your service in the local market, or no one needs or needs to pay for your service, the business might not be as practical or sustainable as you would hope.

Try not to focus entirely on what your passions are, but focus more on the skills you have and what sort of venture you might be best suited to.

How soon can you start?

The time invested and the costs involved in starting up a business can be daunting, but you shouldn’t risk rushing or skimping in the start up stages. Doing so will only be at the expense of your business down the line.

Consider the scale of your business initially. You may have a fantastic idea that you’re sure will be successful, but you won’t become the biggest thing on the market overnight.

Think about starting small based on the resources you have available, and scale up as cash flow increases. Are you able to use the resources available in your home to start and grow your business from a grassroots level? Starting from home might not be what you anticipated, but it’ll reduce financial risk while your business is still growing.

Something to consider is how much support is available for you to make use of. Starting and running a business is a stressful process, and doing so without any sort of experienced support network even more so. Consider taking on the services of a business mentor who has experience in the field you would like to start a business in. Having the input of someone who can guide your business idea and help you reach a much more stable foundation to grow from can prove to be invaluable for the entire length of your business operation.

Once you’ve decided on your business idea, you can start working on turning that idea into a reality.

How can FSB help you to set up your business?

Establishing what you want your business to be is the first step to running your own company.

FSB Business Creation provides people looking to establish their own business access to a range of services designed to help and support new start ups. From help and advice to detailed FSB Market Entry Reports to help you to understand different business sectors and identify the markets you want to target.

FSB Business Creation also includes access to:

  • A dedicated help and advice line
  • Help with company formation
  • Insurance services
  • Networking support
  • Payment services

To find out more about how you could benefit from FSB Business Creation get in touch with a member of the team or visit our FSB Business Creation page.