2. Explain your business idea

The idea central to any new business, and how good that idea is, will have a big bearing on how well you do. It is also important to be able to communicate your idea very clearly, so that other people can understand and recognise the opportunity – this is obviously crucial if you are seeking funding. In this section we will look at two things:

• How to find a good idea (if you don’t already have one!)
• There is no 'magic forumla'
• Explaining your idea

HOW TO FIND A GOOD IDEA

People think that ideas come in two ways, either a sudden burst of inspiration or very slowly over time after years of searching and deliberating! Sometimes though an individual or organisation can decide they want to start a business, and they start the process of looking for an idea. Very few business ideas are completely new, an old idea can be very successful if you find a new way to approach it. North America had numerous burger bars before McDonald’s first burger bar opened – you don’t need a new idea to be successful, what is important is how well you develop your idea!

You can find an idea in four main ways: (Click each bubble for more information)

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THERE IS NO 'MAGIC FORMULA'

There is no magic formula for coming up with great ideas, but there are several ways to recognise when opportunity knocks:

Think in new ways. Instead of dwelling on "What is", imagine "What could be" Associate things that don't have an obvious link (like hiking and global satellite positioning systems) Recognise patterns as they are forming (e.g. the world wide web is changing rapidly - what patterns, needs or wants might emerge from this?) Find new uses for old things. Analyse why something isn't working. Find solutions for consumer problems.

Identify smaller or "niche" markets within larger markets (micro breweries, for example) Recognise changes in consumer tastes as they evolve (such as the current preference for mountain bikes) Analyse the failure of others to see if they made mistakes that might mean success is still possible Apply new technology in new ways (someone thought of putting cellular phones and faxes on aeroplanes).

Brainstorming
These suggestions may be difficult to apply without help from others, so try brainstorming with work colleagues and friends. Get together with other people and come up with as many ideas as possible without worrying (for now) about whether the ideas are good or bad. Let your ideas build on, or combine with, the ideas of others. At this point, don't judge an idea as dumb; think of all ideas as diamonds in the rough. You could also contact your local Enterprise Agency who might be able to suggest good ideas that may work locally, they can also help you evaluate the likely success of ideas that you may have.

Some trends to consider
When trying to figure out which ideas to run with, make note of industries with growing markets or those that can support another competitor.

In order to undertake some evaluation of the ideas generated, you might want to invite 8 – 14 people, the majority of whom should be representative of your potential market and perhaps a few local business people or Enterprise Agency staff. Ask them to discuss the pros and cons of the idea to see how it could be better developed in order to be more successful in your chosen marketplace. Don’t be afraid to change or refine your idea – often the idea someone uses to start a business is completely different from the idea they originally had! It’s better to change your idea than to find out your original idea won’t work after you have invested time and money!

Once you have your ideas together, you must decide which ideas are simply good ideas and which are viable business opportunities. A good business idea should:

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EXPLAINING YOUR IDEA

In order to research your idea and get other people’s feedback as to how good it is or how likely it is to succeed, you have to be able to explain it to them in a way they can understand.

Your business in a nutshell!
It's all very well having a great product or service, but if you can't find a simple way to communicate your idea to the audience you want to buy it, you haven't got a chance of making money.

The mistake many new small business owners make is over-complicating the message. Customers need to understand straightaway exactly what you can do for them, otherwise you'll lose their interest.

Click the images to reveal the examples:

	The Dyson is simply a bag-less vacuum cleaner that, because it doesn't have a bag, has far more suction than any other vac.
	Apple's iPod is simply a new kind of walkman that can store and play over 10,000 songs.
	Ikea's furniture is all flat-packed for self-assembly, so that it can keep its costs very low, and pass the savings on to you.

The three messages above work because they offer a single, simple benefit -and they're all just a sentence long.

Considerations

	Consideration 1:	Write your business idea - product/service description in 25 words or less!
	Consideration 2:	Your Elevator Opportunity! You get into a lift, Bill Gates is already in there - you've got 30 seconds until you arrive at the next floor to convince him to invest in your business; what do you say?

 

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