6 Ideas to Get Your Entrepreneurial Juices Flowing

I’m happy to report that more people, young and old, are starting their own businesses these days, whether driven by the recent recession to be more independent, or driven by their conscience to save the world.  It’s just one more reason to check your financial literacy, since running a business requires a strong understanding and commitment to basic financial principles.

The cost of starting a new business, and being an entrepreneur, is lower than ever.  You can incorporate your new company online for less than $100, and create a website to sell your products via the Internet for even less.  All you need is a new and innovative solution that solves a real problem in the marketplace, or serves an unmet need.

Unfortunately, I often see entrepreneurs who are quick to implement a new idea or technology, before they have figured out what problem it solves, or what competition is already out there.  These people need to remember that customers pay for solutions, not ideas or technology.  If you are looking for some ideas leading to marketable solutions, here are some places to start:

1. Look for personal innovations that could help others as well.  Most people have built some creative solutions in their personal realm, which actually may have much larger potential as a business.  This could be a hobby, like fashioning antique furniture out of scraps, or developing new recipe ideas to excite the family.
2. Enhance a current product to make a new solution. We all get frustrated with current products that are hard to use, need to be made more portable, or have obvious new features that could be added.  Take a hard look at a few of these, for concrete ideas on new products, and the business opportunity they may represent.
3. Fix an existing process that doesn’t work for you.  If you are struggling in schools or on the Internet to find links to resources that can help you with a problem, or need, probably lots of other people are having the same problem.  Take the challenge as an opportunity to create a new website, new tools, and new solutions.
4. Find an affordable route to an expensive solution. Offering bed and breakfast facilities out of homes was started to reduce the cost of overnight accommodations. Inexpensive, yet fashionable, jewelry and clothing is another area that has spawned many successful businesses, and is ripe for many more.  Look for opportunities to provide solutions where currently existing ones may not be accessible to everyone.
5. Take an inexpensive item and create a luxury version. This is the inverse of the preceding item, but it has an equal number of opportunities.  Think of luxury homes, fine restaurants, expensive shoes, and unique handbags.  With proper marketing, the concept has even been applied to pet rocks and small stuffed animals.
6. Provide automation to reduce human labor.  Start by thinking of all the time you spend on boring manual tasks, like housecleaning, or complex tasks, like building a budget and tracking expenditures. The second is the traditional realm of computer applications, now moving rapidly to smart phones, while the first is begging for smarter robots.

If these don’t work for you, then it’s time for some brainstorming on your own. Coming up with ideas that can be made into a business does take effort, but it’s not rocket science.  Use your common sense, as well as the multitude of resources available today on the Internet to finalize a solution, size the opportunity, check the competition, and put together a business case.

After the business case, most people fear that money to build the business is the number one challenge. In reality, as I said in the beginning, the cost of entry has never been lower, and self-funding or “bootstrapping” is by far the most common approach for startups. Try it first.

If your solution is compelling, and additional resources are required, don’t hesitate to contact the Small Business Administration (SBA), banks, or local investors for assistance.

Whatever the road you choose to take, remember that being an entrepreneur is a lifestyle, not a job.  It’s hard work, but it provides a great sense of satisfaction and fulfillment to many people who enjoy the extra level of control and independence.
Warmly,

 

Sharon