12 Issues you should consider
when looking for a Business Idea
GETTING STARTED
Consider your present occupation, and whether you could you do your present job working for yourself rather than being employed by someone else. Successful businesses are frequently started by people with practical experience in the type of work that the new venture is entering. They go into business because they decide that they want more independence in their working lives.
It may be that you feel that the skills you have are already over-supplied. If this is the case, it’s possible that there is no room in the marketplace for yet another joiner, furniture restorer, or undertaker. Or it may be that you simply do not want to carry on doing the same thing for yourself that you’ve done for others in the past. You perhaps then need to think of ways in which you could modify the skills and experience that you’ve acquired while working for somebody else.
Take a careful look at yourself; it could be that your personality or physique suggests a business idea. If you’ve persistence, charm, and good communication skills, for example, you might be a good salesperson. There are frequent openings for self-employed sales agents to sell other people’s products. If you’re good at dealing with people, you might be just the person to take up a retail franchise.
FAQS
How do I identify new ideas?
Try brainstorming with friends or relations to see if you can identify any totally new ideas. There are opportunities for entirely new products or services, such as energy conservation, providing better insulation in homes and factories. You may have an idea for a simple device which you think people might use. It might be worth commissioning a search at your local patent office to see if anyone has thought of the idea already.
Can I look at an existing idea in a new way?
Contrary to popular belief, there are few original ideas. Most successful businesses come from modifying, refining, or re-thinking an existing business idea. Post-it notes resulted from a glue product that went wrong. Perhaps more important is the fact that it might not have happened if the company had not deliberately set aside time when staff could think about innovative product ideas. Try thinking laterally about existing products or materials you know about.
What goods or services could I provide locally?
Think of the problems and difficulties you’ve experienced in getting things for your home, garden, or at work, or in your leisure activities. Analyse what the problems were which caused you most inconvenience, or cost you the most to put right. Think about times when you’ve urgently required a service, and then found that it was not available. Alternatively, you might be able to think of parts or products that were hard or impossible to obtain locally. Think about the things that you and your neighbours and friends most frequently complain about. Listen to people talking in the pub, at the gym, or in the supermarket checkout queue. Then ask yourself whether there is any way of providing a local service or product for any of these markets, and whether people would actually pay for it.
What goods or services could I provide to local companies?
Do some research among local companies. Find out whether there are any goods or services that they have difficulty in obtaining. A new industrial estate for example, may contain a number of small and medium-sized firms, none of which have their own staff canteen, but all of which need some kind of catering service. Perhaps a sandwich bar could be set up on the estate. There may be room in the market for a despatch service linking the estate with other industrial centres.
How do I find out about opportunities for tourism or leisure businesses in my area?
The type of tourism business you consider will depend on whether the area is urban or rural, whether it’s a popular tourist region, and the demographics of the local population. For example, a business such as a teashop may thrive in an area with a high population of pensioners and a high influx of tourists. You may want to consider opening an outdoor activity centre in a rural area. Try talking to people working in the local sports centre or Tourist Board. They may have suggestions for market opportunities in the area.
How could I find out about selling goods made by other people in other countries?
Many new firms start off by selling goods that somebody else makes. A number of opportunities exist to distribute foreign goods in Ireland. For example, the United States Department of Commerce publishes a regular magazine listing businesses looking for facilities and distributors (this is available from all US embassies and consulates). The British Embassy in Dublin has a department especially for assisting businesses. Chambers of Commerce have regular listings of businesses seeking partners willing to manufacture under licence, or to act as sole distributors.
What do large companies, local authorities, and other public bodies buy in from outside the area?
In many cases they will be buying goods from outside the region because there is no one to supply them locally. Similarly, local county councils and organisations like the Health Service Executives and the Gardai are purchasers of equipment and services. Try contacting the purchasing officer of your local council to find out what large and frequent purchases they make. In order to help new suppliers, some companies produce briefing documents for small businesses explaining what they buy and their purchasing procedure. Keep an eye on
Is there potential for import substitution in the area?
One stage further is to look at things which are currently being bought from abroad. Look around in shops and factories to see where the goods on sale, or being used, were made. Customs and Excise keep lists of imported products. The single European market has opened up new opportunities abroad too. Do you have language skills? Have you worked abroad before? You could have enough useful knowledge of another country to enable you to act as an export agent.
MAKING IT HAPPEN
Turn your hobby into a business
You may have skills that you acquired as a hobby, but which could form the basis for a business. For example, if you like gardening, you might consider starting a garden design business. If you’re good at cooking, you could think about starting a catering service for people entertaining at home. Work from home If you’re a parent, and consequently at home a lot of the time, you could think about working from home (if space allows). It might be possible for you to set aside space to sew, knit, or perhaps make soft toys. Another option is to sell products for other people over the phone. There are also an increasing number of opportunities for people to do office work using a computer and modem. This can include anything from word processing letters and keeping accounts up to date, right through to freelance writing and consultancy.
Buy an existing business
Another option is to consider buying an existing business. However, if you do, make sure you find out why the owner is selling. Even if the seller is retiring, make sure you find out why it wasn’t worth his or her while to continue with the business. Make sure you’ve a look at the business’s accounts, and that you understand them. Businesses for sale are usually advertised in the local paper, and could also be advertised in relevant trade magazines.
Not giving it enough time
Don’t expect an idea to come to you in a flash; sometimes ideas take time to develop. Also remember that the time you spend on planning will be time well spent when you finally do come up with a great idea.
WHAT TO AVOID
Not doing enough research
If you fail to do any market research, you’ll have far less chance of success. Research will save you time and money in the long run.
© Bob Tallent is the Managing Director of The Synergy Group, which is a management consultancy and training company specifically aimed at micro and small businesses. He can be contacted on 01-8215189 and 087-2326927. Email This email address is being protected from spambots. You need JavaScript enabled to view it. and www.synergy.ie.