Find your business concept
To come up with a business idea, you can take a methodical approach based on techniques that have proven successful for other entrepreneurs. Whether you want to start a side business with a very low investment or are going all out with your new concept, the best way to find a product to sell is to start by asking yourself the following questions:
What is the size of the potential opportunity?
Too often, entrepreneurs ignore small markets. Certainly, the size of the market should be appropriate to your business ambitions, but the opportunity for a specific niche is not just about the size of the market. For example, if a product category is of interest to relatively few active customers, but the price of the products is quite high and regular purchases are necessary, this is still an attractive opportunity. This is called targeting a niche market. Entrepreneurs focused on market size might miss out.
That said, customer acquisition costs are quite high these days. The markets that represent the best opportunities are those where you can encourage recurring purchases, whether as a subscription or by (eventually) up- selling or cross -selling complementary products. All of these points can be developed later, but keep them in mind during your preliminary work.
Recommended reading : How to find a profitable niche, explanations and examples .
Is it a trend, a fad or a booming market?
The future development of a market is more important than its current state. If you want to build a sustainable business, you not only need to understand current demand, but also be able to predict how it will evolve in the future. Is your product or niche a passing fad, a trend, a stable market or a booming industry?
Passing mode. A passing fad gains popularity very quickly over a short period of time, then disappears just as quickly as it appeared. A fling like this can be very lucrative if you enter the market at the right time, and exit in time, but the timing is very difficult to predict.
Tendency. A trend is a longer-term market direction for a product. It doesn’t grow as quickly as a passing fad, it lasts longer, and it usually doesn’t fall off as sharply.
Steady. A stable market is immune to abrupt changes. It has no major increase or decrease, and remains constant over long periods.
Expanding. A booming market is experiencing steady growth and shows signs of permanent or long-term development.
What is the competitive landscape?
Who are the competitors in your market? How many are they ? If many companies are competing, it is a sign that the market is well established and that a strong demand exists. However, this also means that you will have to find a way to stand out from the competition (to some extent) in order to grab customers’ attention and secure market share.
Get your SWOT analysis template for free. Using this matrix, ensure the sustainability of your business by identifying your strengths, weaknesses, opportunities and threats.
Are there any restrictions or regulations to consider?
Before committing, take the time to understand any regulations or restrictions that apply. Certain chemical, food or cosmetic products may be subject to restrictions, not only in the country in which you import your goods, but also in the countries to which you will ship them.
So, the question of how to start a business should start with researching the regulations regarding your market business.
If you create an e-commerce business , there are consumer information obligations specific to e-commerce to respect, relating to withdrawal or delivery deadlines for example.
Another example is the food sector, which is governed by numerous regulations. So if you start your activity in this field, make sure you are familiar with the legal framework relating to the labeling of foodstuffs which must contain mandatory information.
Choose the name of your company
What should your business name convey? It represents all facets of your marketing, it is present wherever you are. Getting good word-of-mouth is hard enough, without making it difficult for yourself with a dull, complicated, or unsuitable name.
However, nothing is set in stone when you start your business. Whatever name you choose at the very beginning, you can still change it in the early stages. Get to the point: Find a brand name that clearly explains what you do, is short and memorable, and reflects your mission statement and vision. It’s not an easy task, but let your creativity run wild and you’ll find a satisfying name.
Business name generators can give you a few ideas, and then the rest is up to you. If you’re starting from scratch, there are some proven practices that can point you in the right direction.