If you have a creative idea, the first thing you need to do is market research to see if any similar ideas for businesses exist. If any similar model exists, then study the existing model and improvise your idea and look at who are your target customers. You can check with what age group and geographical location that resonates better. You have to look into all of these dynamics when working on an innovative idea. The most important thing to check with an innovative idea is its functionality and usability.
Will people find your product useful and functional and how will it help them in their day to day lives. When Bill Gates created Microsoft, he did it with the vision that he wanted everyone to use computers at home. When Steve Jobs started Apple, he wanted a beautiful looking gadget that has useful apps and every aspect of the design is functional. Whenever you are innovating anything, the functionality of that products decides the reach of that product. The product that you innovate must serve some useful purpose.
How to brainstorm ideas for a new business?
You will have to deal and resolve a lot of dilemmas with regard to brainstorming innovative ideas for your business. You will be seesawing between creative aspect and the business aspect of your idea, but also remember that an idea is as important as learning to start a business. Your challenge here while brainstorming ideas is to find a balance between both these aspects and create a functional business model to execute your innovative idea.
The first thing to know here is whether your idea is really innovative or not. You can do an exhaustive market research and see if any similar or the same idea exists in any of the businesses. You can either modify an existing business model and come up with your own version of some idea, or create an entirely new idea that serves people better.
How to define a niche for your business?
Defining the niche of your business is as good as telling the customers what is so special about your business. You can define a niche in terms of your products, the marketing strategies, your customer service, or the way you conduct your business. A niche or a specialty can also be in the decor of your physical set up.
You must be able to carve this uniqueness on your own in any of your business aspects. You can decide what your niche is. For instance, if your food joint sells Golgappas, then you can create a niche by deciding what interesting ingredients go into the Golgappas instead of the regular stuff. For instance, if you are giving stuffed Golgappas with Mexican baked beans and mint water, there you are making an Indo-western innovation to an already existing recipe. You can create a niche in a single product or a variety of products. You have to brainstorm for the same and how to start that business.
Why a new business will be better than a franchise business?
Only if you want to have a full control over your business and how to manage it, and make changes as and when required, then a new business is better than a franchise. If you feel it in the pit of your stomach that your idea will flourish then a new business is just right for you. Also, you can make your own rules, policies, laws with regard to your business. You will truly be your own boss. Nobody will decide how your business should function. Though there are risks involved, you will derive satisfaction and be able to build something of value when you start a new business.
Important things to research about your business idea
You must know how much capital you need, also the tax benefits that you can have if you choose to be a sole proprietor or be a partner of a LLC. You can calculate the risks in both of these options and choose which kind of business title will give you a better advantage to implement your idea. You must also research the name of your business and use the necessary trademarks and take care of the intellectual property rights, as and when needed.
You will need to research on business insurance, business bank accounts provided by commercial banks, decide your USP, employ an experienced accountant who can advice you on financial matters while you conduct your business, you will also need an attorney to take care of the legal aspects of your business. If you are going to sell any products, you will need to decide the pricing, offers, discounts that you will make available to your customers.
Raising capital is vital to any business. You must be able to find investors for your business. You will need to do a research on the same as well as grow your network to find better mentors. Also, you must know how to use the online space to conduct and promote your business. You can also look for partners who are interested to join you. You will also have to research into the technology and tools that you will be using to conduct your business and the cost that would incur to use this technology. You will also need to look into the hiring and staffing bit. You should know what kind of staff you will need and also if they need training.
Most importantly you will need a business plan that will have all the details about financing, expenses, working capital, estimated profits, etc mentioned. You will have to plan a detailed business plan while keeping all your financial statements handy.