Feasible business ideas are evaluated by analyzing the demand for the product or service, weighing the available resources and looking at the skills, talents and knowledge you have. The process of assessing your ideas involves reflecting on all the business ideas and income generating activities you have generated and zero down to three most promising ideas, looking critically at the advantages and disadvantages and basing on your experience and judgment.
To successfully assess the three business ideas that you have selected, you should use a table to tally your results for each business idea and categorize them into columns of skill and competences, available equipment, access to raw materials, financial resources and sufficient demand. Then use the following questions to guide you:
1. Which of these business ideas matches my strengths?
2. Which idea(s) can help me to achieve my personal goals?
3. Which resources do I need in order to realize the business idea?
4. Which gap am I feeling? Is it a need or a problem?
5. Are there people out there who will buy my product or pay for my service?
How to assess your business ideas basing on your skills, talents, knowledge and competencies
First of all, you have to assess the extent to which you possess the required skills (manual, personal, social, technical). If you do not have the required skills, you should think about other options like finding someone else with the skills to help you.
If you have to find someone else with the skills, then you should ask yourself further whether you will be able to afford to pay for this person contributing to your business. Remember that additional costs from employing someone might mean a reduction in your profit.
If you find out that the required skill can be performed by you without any problem, that idea should receive a high ranking. But if you discover that your skill level is low or nonexistent as, far as the skill required is concerned, then the idea should be rated low.
Secondly, you have to look at the future of the business idea by asking yourself which other secondary skills you have to acquire to fulfill your business goals. And how are you going to get them?
How to assess your business ideas in relation to the available resources
By resources, I mean mainly financial resources, human resources and other inputs like raw materials. You have to think about the start-up and working capital. The good thing online businesses do not require huge sums of money to start. You can start humbly and grow your business.
However, you should take note of the financial resources you need to invest in buying equipment (computer) and start-up expenses. You need to think about having cash that you will use to meet the day-to-day requirements of running your business. A positive rating only applies when you are able to have all the money required to start the business. And a very low rating implies that you cannot have anything to start the business.
Secondly, you have to focus on other related inputs like equipment and raw materials (e.g. software). When using certain equipment, you need to possess certain skills. Additionally, you need to look at the availability of the equipment, now and in future, and the challenges you may encounter when using it.
Raw materials are what you use to produce the product. A good business should have a steady inflow of raw materials and their availability is so important. If they are readily available, then give a high rating. But if there are problems or seasonal fluctuations in availability and price, then the rating is low.
Assessing your business ideas basing on the demand for the product or service
Here you should focus on your unique selling proposition, something special about the idea that can make it more attractive. The demand for a product or service means the extent to which customers want it. You have to take the level of competition in the marketplace. The demand of a product or service is also related to the ability of the targeted customers to buy. They may have the need for the product or service but when they have no money to pay for it and this means the actual demand is low.
Having gone through the whole process, you will then select one business idea that has received the highest number of scores and note down the points using the points below:
1. What’s the idea and what’s its status
2. What market does the business idea address? Are there any customer feedback or testimonials?
3. Why do you believe you have the advantage in the marketplace in relation to the market needs?
4. What’s the competition in the marketplace?
5. Who is the team that is going to make the business succeed?
6. What’s your long-term vision for your business and the projected returns on investment?
7. What’s the estimated total funding required executing the business plan?
8. What amount of financing are you seeking initially?
Finally, a proper write-up of the analysis of your business idea will be very important for you to further develop a business plan and to convey all the essential information in a more clear and concise manner. It enables you to communicate in a likeable, passionate and credible way to capture the attention of others, especially the people you want to support you as you start your business.
Creating a profitable online business Idea! This is the very first thing any internet entrepreneur should focus on to successfully make money online.
This is the make it or break it factor to be successful online or offline. You may spend a lot of time, effort and money chasing the wrong idea. This step is the most important step. Frankly there is no right or wrong way to brainstorm ideas, there are only best practices, common sense and of course some luck. Below I will present the best practises on how to develop profitable business ideas based on my own experience and the world best entrepreneurs. Now fast forward to the good stuff.
Create a profitable online business idea by inventing something new
This is rarest and the hardest of them all. Like Thomas Edison who developed many devices that greatly influenced our lives. From the motion picture camera to the long lasting electric light bulb.
If you can picture a certain product or service that would make people lives’ easier, then you are on business.
• Tim Ferris Did this. The Author of the world phenomenon “The Four Hour Work Week” Where he preached to live an awesome lifestyle while putting your business on autopilot! He is a master hacker and he managed to outsource his life and his business very cheaply. He has built a huge passionate follow who are ready to help him sell or promote his products and he gives them his mind, body and soul. He gives presents, free info and help as much as he can. His blog went to rank around 6000 most visited website -among millions- in SIX MONTHS!! If you have something special, unique and awesome please do it.
Create a profitable online business idea by fulfilling a personal need
If you needs a product or a service, be certain that there are other people who are searching for a solution for that exact same problem.
Personally when I was a project manager at one of the biggest engineering firms. I had to self-study every single day and night to be able to compete and sustain my edge at that level and to deliver projects on time, under budget and at the highest quality standards. Self-learning was not easy and taking courses and workshops were both time and money consuming.
• My first online business was an E-learning hub for professionals. filled with articles, audio and video training and discussion boards. I added more value by giving them assignments and research work to further solidify the learning experience and make it as practical and as close to real life as possible. I developed it further and created a membership area for different niches like: Project Management Professionals and Marketing professionals… etc. Professionals would post their most urgent questions and problems and collaborate with other on how to solve them. They would share their experience in their current projects pointing positives and well as negatives. And exploring alternative ways and solutions to try at their next project.
As you can see I took a simple E-learning portal and turned it into a thriving community filled with passionate professionals who are sharing their ideas, experiences and recommendation. They sat goals and worked hard to achieve them. And we congratulated each other for the completion of our goals.
We were such a beautiful little community.
Do you have a current need? Write it down. It maybe your next big thing.
Create a profitable online business idea by making people lives EASIER
We are in love with the easy way. We go to Google to find a quick answer and we ask a friend for a recommendation.
We want the easiest and the shortest route to our goals.
If you can develop an idea to make people lives easier! They will love you for that.
• Google made our lives easier and now we can find exactly what we need in a blink of an eye. And they are going that extra mile every single day from local search, blog search, Scholar search, image search, movie search, news search and every other kind of search you can think of.
• Mint Made our lives easier in terms of managing our personal finances. They develop free and premium software to help people control and manage their budgets more efficiently. They were one of the fastest growing companies in the world and they were featured in The New York Times, The Wall Street Journal and Money magazine as the best tool to manage your personal finances.
• Aweber when CEO and Founder Tom Kulzer was a sales leader for a computer hardware firm in mid 90′s he noticed that leads were falling due to lack of proper follow up from the sales agents. He went on his way and started Aweber the best email marketing solution I have ever used and the number one in the scene right now.
Create a profitable online business idea by upgrading a current idea and make it better
Not everyone has the vision to spot a growing trend or a specific need. So it’s easier to develop and upgrade a current business idea and make it better than the original one.
• Google did this. When they witnessed that search engines were merely displaying search with no clear standards. They developed a search engine that displays results based on user preferences and history by exploiting cookies. Try to search for any term and make your a friend search for the exact same term with different computer and you would find different results as Google scans your history and browsing behaviour by a very complex Algorithm and displays the most relevant results for you. They grew and became the number one search engine and the number one website on the internet today.
• Tumblr did this. When 21 years old David Karp saw the growing interest in Twitter and Blogs. He combined the best of both worlds. Many people loved to share on Twitter but the 140 characters and the limitations were an issue for some. Others wanted a platform to express themselves freely but Blogs were too technical or too serious for them. The young genius made it and established Tumblr where you can share easily like Twitter but with the powerful features that Blogs only have. Tumblr now is the 35 most visited website on the internet today. And the future looks awesome.
Create a profitable online business idea by offering unbelievable service
Sometimes we can’t figure out a new business idea or an upgrade to a current business model. Well the best thing to do is to choose a business model you like. Study it and differentiate yourself not by lowering prices -I am totally against this strategy btw- But by offering unbelievably good service.
• Zappos Did it. They started by offering great shoes for sales on their website like the hundreds of thousands of other websites. But they took the customer service to limits never seen before. They would occasionally send you flowers or a present or a voucher at your birthday. They may send your products by speed delivery at no additional costs to you and you would be happily surprised. Their customer service would speak with you on the phone as long as you need explaining every detail over and over. Actually there is a documented phone call that lasted for 8 hours! This is how far they took it. The Result? Now they are making over a billion dollar in sales each year! They are the biggest shoes retailer! And their huge customer base do all the promotion and advertising work for them because they were happy and impressed.
Create a profitable online business idea by entering a very specific niche
A niche is a group of people sharing a specific interest, hobby or career. You can take a large business idea and break it down to it’s niche components, study each one and build a business around one niche.
• LinkedIn Is the largest professional social network in the world. They took the Facebook concept and simplified things. They didn’t need millions of teens, housewives and TV stars. They chose professionals and entrepreneurs and they built a website specifically designed to serve them.
• Pat Flynn who is one of my favourite bloggers of all time did this when he first started with his LEED exam training website -It’s a certificate in the Architecture world- He targeted Architectures who want to take the exam and built the best study guides to help them understand the materials and pass the exam. He passed the exam himself first so he knew what does it take to pass it. Result was over 200.000 USD in gross sales in his first year and he is doing much better since then with his awesome SPI blog.
You can do this. Analysis the big businesses and break them down. Find what would be an interest for you and build a website around it. As an example I may consider analysing LinkedIn itself and see the small components inside. Well you may start a “young professional social network” or an “Executive level social network” or “project managers social network” Decide first. Brainstorm how can you provide an awesome fulfilling experience for your audience and then build a website to do this and more.
Create a profitable online business idea based on your passions and fears
Same concept here. If you are passionate about something. There is a good chance that others are in love with it too. If you are totally scared about something you may research and learn to figure a solution and build a website offering that solution. Or simply a website that offers some sort of support group for whoever suffering from that fear. Trust me it works.
Write down your passions, what you love to read about, listen to, or watch. Your dreams maybe? Or maybe your fears! Write them down. Then rewrite them again. Pin them and look at them everyday. Add or delete. I assure you would find something interesting.
Example: I love racing games! I may go and build a need for speed fans website offering latest news and game hacks. I may then offer a simple eBook selling my very best tricks to beat the boss in the game! Figure yours it maybe as simple as that.
I hate bugs! I completely hate it specially ants. I may build a website and post my latest solutions to get rid of them! Organic solutions maybe! Then present them in an ebook.
I love working out! I am a 14 years athlete and I practised everything. I DID start a website based on how to lose weight for the business professionals. I offered straight forward advice for people who can’t afford sever dieting or hours of training. And it worked out NICELY!
Create a profitable online business idea by being weird!
Yes this is not a typo. Although this is not my thing but some people are flooding their bank account with this
• Tucker Max Ps: Please note that his stories are NOT for everyone. They are uncomfortable for many. Please don’t read on his blog if you are easily offended. He is a playa and he wanted to document his adventures in a book. Well every publishing house refused to publish it. He didn’t give up and he built a website and published his stories for free so everyone can sees them. Within few months and with smart marketing his traffic went over the roof This captured the publishers attention and they contacted him offering generous contracts to publish what it seems to be unrealistically popular stories. He did it.
• Million Dollar Homepage If you have ever asked me if setting a website and inviting people to give you money just for putting their logo in a homepage! I would say this will never work! Where is the added value? Well I am wrong this home page collected payments to put brands on the home page “to own a piece of the internet”
Other ways to create a profitable online business idea
If your creativity let you down. Here are some other ways to earn an income by starting an online business.
• Website flipping: Similar to real estate. You build a website. Add content. Attract visitors and offer it for sale on website like Flippa.
• Web hosting reseller: With a fixed monthly fee you can start selling web hosting service. This can be a profitable business model If you can attract lot of traffic. Will cover this in future articles
• Review website: Review anything that you are interested in. And offer some Affiliate links. You earn commissions on sales made by your links. Will cover how to be a super affiliate in a future article.
• Content writing: If you are a good writer, set up a website and offer your services. You may join Elance or Odesk People are in a constant need for good writers
This is the only article you would need to find about your big idea! There is not right or wrong way. As you saw some unrealistic businesses made money. You will never know unless you try. Please stop reading about how to generate profitable ideas for your internet business and start doing what I have told you above.
Just grape a pen and a paper -No laptop please- and go through each method described above from inventing something to upgrading a current business idea to embrace your passions and fears or targeting a very specific niche.
Go through each one, brainstorm each one. Write it down. Pin it. Visualise it and you would find your answer. Sooner or later and this is my promise to you.
Some people would argue that they need to test the idea profitability before they start. Well some people agree and some disagree. I disagree personally. Simply because if you as a person needed something or facing a problem or a certain fear. Be certain that others feel that same way too.
If you are inventing something never done before this testing would do you little good. Ordinary people can’t visualize your idea, so their replies would never give you an accurate answer. Example is when they invented the phone. People never imagined this would be possible and thought their lives are perfect. They invested the mobile phones and now people can’t imagine how they lived without them and now they lives are perfect, now they can talk in the street! They invented the smart phones and now you are connected to your social network, your business and to everything.
Idea here is that people can’t imagine things. You educate them to accept the new technology. As long as it makes their lives easier they would be more than happy to listen.
I heard that the late Steve Jobs, the legendary founder of Apple, didn’t believe in market research. With his revolutionary ideas that redefined what technology is capable of. People were unable to keep up and give a clear thoughts about it.
YOU are the creator, Create and educate.
Hope that you enjoyed this article
Hi! My name is Mohamed Anan. And I am a serial Entrepreneur.
I do my level best to deliver practical content to potential Entrepreneurs and online marketers.
This post was about brainstorming profitable online business ideas. Stop reading further similar posts. Trust me it’s all you need. Start Doing.
Great small businesses are started by great small business ideas. Look into any business anywhere and you will find somewhere in the development there was an idea by someone, who did something about it, started a business, built the business, and benefitted others by it.
I am an “idea” guy. Why? Because ideas are the genesis of all things, and surely all things pertaining to business. If the idea is good enough, and the individual acting on the idea is good enough, the combination of idea and action will shake the world.
Perhaps one of the most rewarding things for me to do is to read stories about people who achieved business success. Every successful business came from a person, man or woman, with an idea that they would grow into a concept, and that concept was developed into a product or service, and that product or service created a business.
There are countless inspiring stories of how businesses were started and developed. Most of them are fascinating reads because they help to nurture in my mind the power of small business ideas, and how those ideas can effect the world.
One of my favorites is the story of Madam C J Walker. She was born in 1867 in the deep South, a time and place of extreme discrimination and disadvantage for African Americans and women. Both her parents were slaves, and of her five siblings, she was the first born free.
But her difficulties in life did not end there. Both of her parents died, and when she was only twenty years of age her husband also died, leaving her with a two year old daughter. She moved to another state to be with her brothers, and there began to develop an idea that had been spawned in her years before…
Madam C J Walker had married again, this time well into her thirties, when she began experimenting with a product to deal with hair loss and scalp issues common to women of the time. Eventually, fueled by her own passion and ideas, she developed several products of her own design and began travelling with her husband to sell them throughout the United States. Within a few years she had built a college to train hair culturists and even her own manufacturing facility to produce her products.
Madam C J Walker became the first self made woman millionaire, and this with multiple and substantial disadvantages. Her story is a testament not only to overcoming tremendous odds to achievement, but the power of an idea. Her small business ideas, bolstered by her own personal strength and ingenuity, blossomed into a massive benefit for millions of women of her time and beyond.
Most people have great ideas. Perhaps there is nothing more common than great ideas. The problem is not lack of ideas; it’s excuses people offer not to act on them.
The entire soft drink empire came from a single idea, formed into a recipe, and scratched onto a piece of paper and tucked away in someone’s pocket. And that idea would have remained a mere “idea” forever, had not someone took the chance and acted on it to see what would happen. They did, and the world is different for it.
To create a successful business, there must be an idea, but not just any idea. It has to be a unique, never thought-of or acted-on idea, one that fills a need or a desire of many people, and can be developed and produced and sold.
So how to approach small business ideas to bring them to fruition? Here are few questions that should be considered:
1. Is the idea new? If it already has been done, or is commonly known, it probably isn’t a novel idea worth pursuing, unless the idea is a completely new twist on an existing one, that would dramatically improve it.
2. Is the idea reasonable? Here goes the logical standard: an idea is only as good as it is reasonable or possible. Yes, it would be great to have a product that, say, makes the front lawn never grow higher than the desired length, while remaining green and healthy. But is this possible, or even practical? There are zillions of ideas out there and plenty of them get developed to a point but never see the light of day because they are not reasonable: the cost or hassle to produce them is far greater than the benefit.
3. Is the idea in my field of interest or knowledge? Most people are good at something and have a specific area of interest. To develop small business ideas effectively it stands to reason the developer should understand the product or at least have serious interest in it. A small business stemming from a person’s passion is the fastest and surest way to success.
To build the enterprise or business or organization that will change the world always starts with an idea. Then ideas are added to ideas with passion and determination and intelligence. And what results can be life changing, not only for the entrepreneur, but for people everywhere.
A dream for many working moms is leaving behind the 9-5 and launching a life and business they dream of for their family.
One of the first obstacles that get’s in our way of moving forward with our dream is “I have no idea of what type of business to launch.”
Uncovering that brilliant business idea inside of you (I believe we all have one) is crucial if we are to gain the focus and motivation to go for this dream.
Our business idea can also make or break how successful our business is and most importantly determine if we create the lifestyle that we truly desire for our family
So how do you uncover what your brilliant business idea is? Here are 5 steps to get you started:
Clarity on Your “Why”
The most brilliant business ideas are built from the foundation of your “why.” The deep underlying drive behind why you want to start a business. As working moms we already have a strong “why” which is to provide financial security to our family or have more flexibility to spend the time we want with our kids.
Now we need to go a step further and determine the legacy we want to leave in the world with our business. It’s the “why” that makes us get of bed in the morning to do something we LOVE rather than something we feel like we “have” to do. When we don’t clearly understand our “why” then we take the risk of starting a business we don’t really like, but one we thought we “should” start, or think will make us the most money.
So before going any further determine what your “why” is for starting a business, the change you want to make in the world with it, and then build your business idea from there.
Reveal Your Gifts and Talents
Now you are clear on your “why” it’s time to uncover your greatest gifts and talents you have to offer the world. Embracing our gifts will help us to develop a business idea that we LOVE and feel absolute passion towards. It will also be one of the secret ingredients to making our business thrive and bring in the money.
Ask yourself these questions. What do you love doing? What are you naturally good at? What do people seek you out to help them with? Ask others what they see as your talents? Read my previous post on how to cultivate your greatest gifts through my 5-step GIFTS process.
A business idea must be in line with creating the type of lifestyle you would like as a business owner. Do you want to be able to travel and do your business from anywhere in the world. Or maybe too much travel is why you want to leave your job so you are looking for a business that would allow you to be at home the majority of the time. Would you love having a storefront where you get to interact and showcase your products to your clients on a daily basis? Are you looking to create more flexibility and freedom and do not want to be held to a 9-5 schedule. What is the lifestyle you want to create with your business? Having clarity on this from the beginning will ensure you don’t find yourself in a business a few months from now that feels like it just replaced your job. You want to make sure you build a business that creates that lifestyle you dream of.
You know what you’re good at, you know what your deep “why” is now it’s time to put these two together. Start by brainstorming all the business ideas you can possible think of that will showcase your biggest gifts and fulfill your why in some way. If you want to make life easier for new moms it might be developing a new product you wish you had had. If you want to help people have a more secure financial future you might use your great accounting skills to teach them how to manage their money for greatest wealth.
Don’t hold back. Brainstorm every possible idea you can think of. Even if it sounds crazy at first write it down. Some of the craziest ideas end up as highly successful businesses.
Share Your Idea
Once you have brainstormed your ideas pick the top 3 that most appeal to you. Then start to test them out. Share your idea with people. Your friends, family, acquaintances. Identify the type of person who would most likely be your customer for that particular idea and seek out their opinion. You might find them on online forums, or at local meet-up groups. Start to hang out where they do and seek their feedback on your idea and whether they would use it.
This is a great place to start to see if it is hitting a desire or need of your target market. Ask them what would make them buy or use it. Any ideas they have to make it more appealing or a better fit. You can start to get a feel for how your idea will be receive and ways you can improve on it. Once you start to get a feel on your business idea in these simple ways then it’s time to move on to more focused market research and testing your idea.
Taking the time to unveil a business idea that you and your target audience will LOVE, one that will allow you to share you greatest gifts and talents with the world and create the lifestyle you dream of is the basis of a building a brilliant business and life for you and your family.