The following article is an excerpt from the Developing Startup Ideas guide. To read more, purchase the full guide here
The foundation of every profitable business is based on choosing the right product or service to sell. Entrepreneurs often find themselves in one of two positions: 1) They want to start a business, but struggle to come up with that “perfect idea” to launch; or 2) they think of one idea and decide to launch without fully evaluating the idea’s potential. When thinking of products or services, it’s always best to start with the ideas you already have. Maybe it’s an idea you have had for years, or it exists in a partially constructed business plan somewhere. These ideas are as valid as searching for new ideas on the internet. I can’t tell you the perfect product to create, but I can help guide you in the right direction.
Choosing a Startup Idea
Pick a business where you can add value. This is the most important criterion when selecting a product or service, and you’ll be hard-pressed to succeed without meeting this guideline. If you’re selling a physical good that someone else has already manufactured, you’re really selling a commodity that a customer can likely purchase from hundreds of other locations, both in person and online. Why should the customer choose your product? If you’re selling a service, how is your service differentiated from others and why should a client trust you? What value do you individually add that no one else can add in the industry? You need a clear differentiating factor based on a client need in order to be successful.
1) Sell Something That You’re Passionate About
Starting a business is one of the most difficult undertakings in your life, so it’s important to find something you enjoy. You will end up spending a significant amount of time developing, launching and growing your business, so pick something you enjoy doing.
Ask yourself these questions:
Example: Global Petals: Founder Michael Lyons was inspired by a study-abroad experience living with an Ecuadorian rose farmer, and saw an opportunity to bring Central American flowers to the United States.
The foundation of every profitable business is based on choosing the right product or service to sell. Entrepreneurs often find themselves in one of two positions: 1) They want to start a business, but struggle to come up with that “perfect idea” to launch; or 2) they think of one idea and decide to launch without fully evaluating the idea’s potential. When thinking of products or services, it’s always best to start with the ideas you already have. Maybe it’s an idea you have had for years, or it exists in a partially constructed business plan somewhere. These ideas are as valid as searching for new ideas on the internet. I can’t tell you the perfect product to create, but I can help guide you in the right direction.
Choosing a Startup Idea
Pick a business where you can add value. This is the most important criterion when selecting a product or service, and you’ll be hard-pressed to succeed without meeting this guideline. If you’re selling a physical good that someone else has already manufactured, you’re really selling a commodity that a customer can likely purchase from hundreds of other locations, both in person and online. Why should the customer choose your product? If you’re selling a service, how is your service differentiated from others and why should a client trust you? What value do you individually add that no one else can add in the industry? You need a clear differentiating factor based on a client need in order to be successful.
1) Sell Something That You’re Passionate About
Starting a business is one of the most difficult undertakings in your life, so it’s important to find something you enjoy. You will end up spending a significant amount of time developing, launching and growing your business, so pick something you enjoy doing.
Ask yourself these questions:
- “What are my special skills or experiences?”
- “What are my hobbies, extra-curricular, non-vocational interests?”
- “Do people sometimes seek my advice on some subjects?”
- “Where do I go to find kindred spirits?”
- “Who is naturally drawn to my interests or to my lifestyle?”
- “What information do I possess that other people are seeking?”
- “Who is beginning on a path that I have successfully walked myself?”
- “Whose concerns can I reliably anticipate to address their needs?”
Example: Global Petals: Founder Michael Lyons was inspired by a study-abroad experience living with an Ecuadorian rose farmer, and saw an opportunity to bring Central American flowers to the United States.
2) Solve A Problem
Every successful product solves a particular problem, and solves it well. Subway solves the functional benefit of providing sandwiches that satisfy a person’s hunger. A movie theater solves the emotional benefit of providing entertainment while passing time. This is popularly referred to as the “job-to-be-done” for the consumer. Your product should do a particular job, functional or emotional, for a consumer and do it well. Identifying the job-to be-done comes from observing people, understanding what jobs they want or need, then uncovering how a product or service can do that job for them.
Example: Shipbob founder Divey Gulati recognized that one of the hardest parts of selling your stuff online was actually shipping it out. He created a business that takes the hassle out of the process by picking up, packaging, and shipping your items for you saving time and money.
Every successful product solves a particular problem, and solves it well. Subway solves the functional benefit of providing sandwiches that satisfy a person’s hunger. A movie theater solves the emotional benefit of providing entertainment while passing time. This is popularly referred to as the “job-to-be-done” for the consumer. Your product should do a particular job, functional or emotional, for a consumer and do it well. Identifying the job-to be-done comes from observing people, understanding what jobs they want or need, then uncovering how a product or service can do that job for them.
Example: Shipbob founder Divey Gulati recognized that one of the hardest parts of selling your stuff online was actually shipping it out. He created a business that takes the hassle out of the process by picking up, packaging, and shipping your items for you saving time and money.
3) Identify Consumer Trends
A great place to start your search for product ideas is to look at some top consumer product trend publications. Following trend publications is a great way to begin getting a sense of the direction consumer products are going and the ideas other entrepreneurs are introducing to the market. Following these publications can also expose you to new product categories and industries that you previously didn’t know about. Following what’s trending can help you to dream up new goods, services and experiences for your online business.
There are several popular trend publications online including, but not limited to:
Trend Watching - an independent trend firm that scans the globe for the most promising consumer trends and insights.
Trend Hunter - the world’s largest, most popular trend community. Fuelled by a global network of 137,000 members and 3,000,000 fans, Trend Hunter is a source of inspiration for aspiring entrepreneurs and the insatiably curious.
Springwise - travels the world for you on the search for new entrepreneurial ideas, trends, and stories.
Example: Servabo Founders Tim and Nishana were early to the wearables trend, and created a personal safety device called Shadow that easily alerts your contacts when you’re in danger.
A great place to start your search for product ideas is to look at some top consumer product trend publications. Following trend publications is a great way to begin getting a sense of the direction consumer products are going and the ideas other entrepreneurs are introducing to the market. Following these publications can also expose you to new product categories and industries that you previously didn’t know about. Following what’s trending can help you to dream up new goods, services and experiences for your online business.
There are several popular trend publications online including, but not limited to:
Trend Watching - an independent trend firm that scans the globe for the most promising consumer trends and insights.
Trend Hunter - the world’s largest, most popular trend community. Fuelled by a global network of 137,000 members and 3,000,000 fans, Trend Hunter is a source of inspiration for aspiring entrepreneurs and the insatiably curious.
Springwise - travels the world for you on the search for new entrepreneurial ideas, trends, and stories.
Example: Servabo Founders Tim and Nishana were early to the wearables trend, and created a personal safety device called Shadow that easily alerts your contacts when you’re in danger.
Next Steps
After reviewing these resources and brainstorming, create a list of 3-10 potential business ideas. Each of these ideas should include what you will do (value proposition) and who you will do it for (customer segment). In the next article, we will evaluate each of these ideas to understand their potential.
After reviewing these resources and brainstorming, create a list of 3-10 potential business ideas. Each of these ideas should include what you will do (value proposition) and who you will do it for (customer segment). In the next article, we will evaluate each of these ideas to understand their potential.