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Start » startup, 3 easy steps to research your startup business idea.

After you choose a business idea to pursue, your next step is researching it. Here’s how to do it right.

Starting a new business is an exciting venture with limitless opportunities. However, if you’ve decided to take the leap into entrepreneurship, you’ll need to do your homework before you hit the ground running.

After choosing a business idea, the first step to starting a new business is researching that idea. You'll want to know if there is a demand for your potential product or service, as well as the type of competition you'll be up against. Doing this work can help you anticipate and counter any potential issues, giving your business the best possible chance of success.

Here are three simple steps to jumpstart your business idea research.

[Read: 5 Expert Business-Planning Strategies to Help You Reach Your Goals ]

Develop a market research plan

Conducting market research can help you determine who your target audience is and how to reach them effectively, as well as how your product or service uniquely solves a problem that audience is facing.

There are two main types of market research: primary and secondary. Primary research refers to any information that comes directly from your audience, such as focus groups, surveys and interviews. This can help you understand your potential customers’ habits, preferences and needs, so you can cater your offerings accordingly.

Secondary market research comes from the public or outside sources. These may include public sources like government statistics, commercial sources like market reports and internal sources like your company’s own marketing data. You can use this information to identify trends and patterns, allowing you to target your marketing.

When conducting market research, consider where your target audience spends time, then invest your efforts on those platforms. For example, if your ideal customer isn’t typically a big social media user, reaching out to people on Instagram might not be the best use of your time.

Conducting market research can help you determine who your target audience is and how to reach them effectively.

Study your competitors

Once you’ve gained an understanding of your audience, you’ll also need to gain an understanding of your competition. Competitive research involves identifying your competitors and identifying their strengths and weaknesses. This not only helps you see how your own business idea compares (and where you may need to make adjustments), it also provides valuable insights regarding industry trends.

Your first step is to identify your business’s main competitors, which can be done by simply searching your product or service category online. Competitors can be divided into direct and indirect: Direct competitors are targeting your same audience with a similar product or service, while indirect competitors may have slight variations in their product/service or target audience. Researching both can help you discover areas of growth for your own business, while also mitigating any potential threats to your business’s success.

Once you’ve found your main competitors, analyze their online presence by reviewing their websites, blogs and social media pages. You may even consider signing up for their email lists and following their social media profiles to get an idea of how they communicate. Finally, track your findings and use the information to fine-tune your business idea and its offerings.

[Read: Need Some Feedback? How to Conduct Customer Interviews and Focus Groups ]

Conduct a SWOT analysis

A SWOT analysis helps you objectively evaluate both internal and external factors that could impact your business. SWOT stands for strengths, weaknesses, opportunities and threats. Take time to brainstorm what your business does well, where your business can improve, which opportunities your business can take advantage of and which external threats could have a negative impact.

Once you’ve completed your analysis, implement what you’ve learned by creating an actionable plan that will help you capitalize on your company’s strengths and minimize the impact of any weaknesses.

Finally, keep in mind that your initial business idea research is just the first step. Your product or service, your audience and the market may change over time. Conducting regular research and analyses of your business will give it the best opportunity for long-term success.

Stay tuned for our next Startup2021 article on doing a competitive analysis.

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Blog / Small business tips / How to conduct market research for your business idea

How to conduct market research for your business idea

If you don’t know who you’re selling to, you may miss important acquisition opportunities. Market research helps you to uncover key information about your target market so that you can reach, engage and ultimately convert your ideal customers into buyers.

The internet has made it easy for customers to find out information about brands online. The same is true for small business owners looking to figure out how to do market research for a business idea .

Market research will help you to discover who your ideal customers are, where they hang out online or in-person and how and why they make purchasing decisions. Armed with this information, you can get in front of your ideal audience in the right place at the right time, thus grabbing their attention and motivating buying behaviour.

In this article, we’ll explain what market research is and why it’s important, outline several types of market research and detail how to do your own market research to boost reach, drive conversions and increase revenue.

Top Tip: Conducting market research is a key part of ensuring that your start-up idea is something that people actually want and/or need. Once you’ve finished your research, you’ll need to get into the nitty gritty of creating a brand for your business, choosing your company formation structure, educating yourself on business laws and regulation, sourcing funding (if necessary), and marketing your business. You can learn how to do all of this and more in our guide to 10 effective steps to start your business in the UK 📌. 

Table of contents:

What is market research.

• Why is market research valuable? 

Types of market research

• How to conduct market research in 5 steps

5 common market research questions

Wrapping up.

Market research is the process of identifying information about your target industry as well as your target customers. 

When starting a new business, it will help you to answer the following questions:

• Demand: Is there a desire or need for your product or service? If so, what problem or pain points does your offering solve and how can you better align it to suit this demand? 
• Market saturation: How many similar options are already available to consumers?  Further, what are those businesses who are already in the space doing well and where are they missing opportunities? What can you do differently to fill in these gaps?
• Market size: How many people would be interested in your value proposition? This will help you to forecast your startup budget or, for businesses that are post-launch, this new product or service budget. From there, you can also predict revenue and profitability.
• Economic indicators: What’s the income range and employment rate of your target audience? This is the first step in customer research and it will help you to create detailed customer personas (more on these later on).
• Location: Where do your customers live and hang out, both geographically and online, and where and how can your business reach them?
• Pricing: What do potential customers pay to your competitors? This will help you to figure out exactly how to price your products or services so that you can stay competitive and achieve profitable markups. 

The results from this research will help you tailor your marketing efforts and brand messaging to better engage your audience. And, it will help you to design and package your product or services in a way that aligns with your audience’s needs. All of this leads to better conversion rates, sales and revenue. 

Why is market research valuable?

Understanding your customers is the most effective way to drive engagement and increase loyalty. Knowing their desires, needs and pain points helps you create a better user experience and cater to audience demand.

Market research is invaluable because it gives you compelling insights into user behaviour. While data and analytics give you a high-level overview of behaviours, market research goes a step deeper and uncovers what drives user intent. If you can unearth user intent, you can speak directly to your consumer with personalised messaging that motivates them to take action.

Market research also helps you uncover industry trends, ensuring you’re staying in line with what customers want and need out of similar products or services within the same industry. 

Competitor research like this helps you figure out what your competitors are doing well and where there are gaps in their strategy that you can fill. Plus, getting a sense of small business trends in your target market will help you to understand how they will impact your revenue and profits. 

There are two main types of market research methods: primary and secondary. Primary research entails speaking directly to the source, or direct-to-consumer, and secondary research is the act of gathering data from existing third-party sources. 

Both main types of research utilise qualitative and quantitative research methodologies.

Qualitative research focuses on data from first-hand observations, such as interviews, focus groups and questionnaires.

Quantitative market research , on the other hand, focuses on collecting and analysing big data from larger sample sizes, such as demographics, spending behaviour and opt-in rates.

To conduct the most well-rounded market research, you should incorporate both types of research and methodologies. It’s easier to start with secondary research and move into primary research once you have an idea of general industry and consumer trends. As secondary research has already been compiled and published by others, it’s less time-consuming and often cheaper than primary research. 

If you’re starting a new business, whether a full-time endeavour or a side business for extra income, this market research will be critical when creating a market analysis section in your business plan . Showcasing exactly what your competitors are doing, how your business will fill industry voids and your plan to attract your target audience will help to generate interest in your business idea.

Let’s dive into the two types of market research in more detail.

Secondary Research

Secondary research is third-party data that gives you a high-level overview of your target market. This data can be found in trend reports, market statistics, industry content, your own sales data if your business is post-launch, studies by government agencies, trade associates or other businesses. 

There are two main ways to access secondary research data.

• Public Sources: These include government statistics, academic databases, news sources, published books, published studies, and so on. Publicly sourced information is often free and you can find it online or in libraries. Such sources in the UK include the Office for National Statistics , the British Chambers of Commerce and the Federation of Small Businesses and more. 
• Commercial Sources: These sources are often in the form of statistics from private-groups that you have to pay money to gain access to. Such companies include Forrester , Gartner , International Data Corporation (IDC) , Everest Group , Mintel , Euromonitor , YouGov and more. You can also use online sources (both free and paid) that analyse online behaviour and trends like Google Trends , Product Hunt , Social Mention and SimilarWeb .

Primary Research

Primary research is research you conduct yourself in order to gather more detailed information about your specific target audience. You should begin primary research only after you’ve completed secondary research as it’s meant to fill any missed gaps from third-party sources.

There are three main ways to do primary research.

• Exploratory research: This involves talking directly with people. You should have an initial sense of your target audience from your secondary research, so this is the first time you’ll be communicating directly with them. Start with broad, open-ended interviews in an attempt to narrow down this group into a more niche audience.
• Specific Research: Once you’ve generated this smaller, more niche group, use the same methods that you applied to your exploratory research. But this time, ask more specific questions to get more valuable and intent-driven answers. 
• Internal Sources: If you’ve already launched your business and are conducting market research to see if the industry has changed since launch, collaborate in-house to see what your existing customers are saying. What were their challenges and pain points at launch and how have they changed? What are your customer’s biggest needs now? What do they say you can be doing better? The idea is to learn from and improve upon your original research by combining historical with updated customer-driven insights. 

How to conduct market research

There’s no one specific way to do market research. Generally, you want to start broad and narrow your research as you learn more. 

Once complete, you should be able to define your buyer persona, know their specific needs and pain points, understand how your competitors are positioning themselves in the market and identify your opportunity to gain a competitive advantage.

Here are five steps you can follow to organise and optimise your market research process.

1. Define your buyer persona

The key to driving brand engagement and purchasing behaviour is the ability to connect with your target audience. Otherwise, you’ll be promoting your product or service to a wide array of potentially uninterested parties, wasting valuable time and money.

Defining your target audience is the first step of your primary research efforts. Once you understand who you are selling to and what their interests are, you can and subsequently reach out directly via your secondary research initiative (we will explain how to do this in step 2 below). 

From there, you can begin to create a buyer persona. Use your target audience research to create buyer personas that answer the following questions:

• Who are your customers and why are they interested in buying your product or service?
• What characteristics, interests, desires, pain points and needs do they share?
• Where do they live?
• How old are they?
• What is their education level?
• What is their income range?
• Which types of websites do they frequently visit?
• Where do they currently buy similar products?
• Which languages do they speak?
• What industry do they work in?

Use the aforementioned public and commercial resources to gather and compile this data. Once complete, you can build your customer persona. This step is important because you can distribute a detailed, shareable document amongst your team or potential investors to guarantee everybody clearly understands your target audience. 

You can use online tools like HubSpot’s customer persona creator , Xtensio , Userforge or Smaply to build basic buyer personas quickly. 

Top Tip: This is the first step in building a marketing strategy that will help you gain traction and boost brand awareness. To learn more about how to attract your ideal audience, read our guide on how to build a go-to-market strategy .

2. Engage with a small target sample

Now that you’ve completed your initial customer personas and market research, it’s time to dive deeper into your audience’s behaviours. This is where your secondary research efforts come into play.

You can reach out to your target audience in several ways across many mediums. Remember to begin with exploratory research by asking open-ended questions and follow up with specific research that unveils invaluable insights. 

• Surveys: Use online surveys to ask a group of people a set of questions. Often, an online survey is delivered via email, but it can also be posted on social media platforms or online forums. Surveys are easy and cheap to conduct, the results come in quickly and the data is straightforward to analyse. You can use platforms like Survey Monkey , JotForm , Google Forms , LimeSurvey and more.   
• Emails: Send a cold email asking if they will be open to answering some of your questions. You can attach your survey to this email and/or use it as a platform to schedule a more in-depth phone interview. 
• Phone calls: Phone interviews allow you to speak directly with your potential customers. Use their answers to formulate your follow up questions to dive deeper into intent and expose insightful trends. 
• Face-to-face: This will be exactly the same as the phone interview, but one-on-one in person. In-person or interviews via video conferencing can be more valuable than phone calls as they give you the opportunity to see body language. Sometimes, you can learn more about what a person is feeling based on their body language rather than their words. Observation is key in face-to-face meetings.
• Focus groups: Focus groups bring together a group of selected participants to answer questions in real-time. Usually, a trained moderator will lead the discussion and ask questions about your product or service, user experience, user expectations, competitor products or services, marketing and branding messaging and more. 
• Call for participants via social media: Post on social media platforms to generate interest about participating in any of the above methods. Make sure you are posting your questions in the places that your target audience hangs out online, such as LinkedIn , Facebook groups, Twitter , Reddit , and so on, so that you attract people that align with your unique customer personas.
• Leverage your network to get participants: Apply the same methodology as your social media call for participants when leveraging your own network. Reach out to friends, former coworkers, family members and more to see who among them fits into your customer persona and is willing to participate.

3. Identify competitors

Gathering information about your competitors helps you figure out who their audience is, how they communicate with them and how they position themselves in the marketplace. This will help you to learn from their successes and failures so that you can replicate the fruitful tactics and avoid messaging or branding that received negative feedback.

There are two types of competitors to identify.

• Industry competitors: Industry competitors are those that saturate your target marketplace. For example, if you are selling a SaaS video conferencing tool, your competitors will be businesses like Zoom or GoToMeeting.
• Content competitors: Content competitors may not be competing in terms of the products or services they sell, but they are competing in terms of content creation. For example, if you run a leadership training business, a content competitor will be a business that creates content about how to be a great leader. This content competitor could run a finance business, a retreat business, a SaaS business or so on, but because they create content that targets similar keywords, they are a competitor in that specific space. 

It’s important to understand as much as you can about your competitors so that you can make better decisions. Learn everything about your competitor’s audience and apply those insights to your branding and marketing strategy.

4. Analyse data

You will amass a ton of information throughout this process. Make sure that you are using a system that helps you organise it so that it doesn’t become overwhelming.

Here are some ideas on how to do this:

• Sort your data into groups to better understand the big picture
• Create several distinct customer personas if you learn that you have more than one audience type
• Build a matrix chart to see how often pain points, desires, needs and attributes overlap 
• Generate a customer journey map to outline the journey from awareness to purchase, using free or paid tools like LucidChart , HubSpot or Visual Paradigm .

Once organised, you can draw meaningful insights from your data collection. This will help you to further shape your offering and messaging. 

5. Summarise findings

Summarise your findings in a simple and shareable format. Draw inspiration from the common themes you discovered to help tell a story about your target audience. 

This will guide future marketing and branding efforts and help your team and potential investors develop a clear picture of who your ideal audience is in their minds.

Add in quotes, diagrams, call clips, video clips and more to amplify the audience’s voice. Outline who you talked to, common themes and if you will stay on course or pivot based on any common feedback threads. End the summary with immediate next steps and action items.

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The most effective questions get to the heart of the matter and help you obtain invaluable insights. These insights will affect who you target, where you position your brand, what your messaging will be, what voice and tone you will use and much more. 

Here are some common market research questions.

1. What do you look for in a brand?

This will help you figure out what matters the most, at a high-level. For example, does your audience care about engaging with brands that support a good cause, or do they prioritise quality above all?

From this answer, you’ll have a better idea of what to include in your messaging. If your audience prefers brands that support a good cause, you can forge partnerships with nonprofits or charities and commit to donating a portion of your proceeds to them. Then, add this messaging on your website or in your content to make sure your audience is aware of your stance.

2. What are the reasons or actions that drive you to make a purchase?

Based on that answer, you can ask more specific follow up questions such as:

• Do you prefer testing products with free trials, or are explainer videos sufficient to pique your interest? 
• Do you prefer when a company is active on social media or do you not care so much?
• How much does a business’s customer service response influence your brand loyalty?

Use these answers to uncover desires, expectations and experiences that influence your focus in these areas.

3. What problem were you trying to solve or what goal were you trying to achieve when you purchased from [COMPETITOR]?

This answer will help you understand your competitor’s audience to see what their intent was before making a purchase. You can use these insights to position your business as a better solution to their problems.

4. What challenge(s) at work has [COMPETITOR’S] solution failed to solve?

From this answer, you can identify pain points that your competitors have yet to build a solution to. Ideally, you can get to market before them and present your product or services as the solution that will fix their ongoing problem.

5. What does your day look like?

While broad and open-ended, this question will help you learn more about your target audience in general. You need to not only understand what drives their buying behaviour, but who they are in a larger sense. 

This will help you build empathy for your audience, which will only serve to help you when speaking directly to them and personalising messaging. Plus, you may uncover something you didn’t previously know about their buying habits from this answer.

Market research is crucial in order to identify, understand and segment your target audience. Further, it allows you to gain a high-level understanding of your target industry as a whole, giving you the data you need to competitively price your products and forecast revenue.

Without market research, you will be selling blind. The most successful companies not only understand their place in the market and exactly who they are selling to, but how and where to target them. 

Plus, they know why their target audience makes certain purchasing decisions, helping them to skew their messaging in a way that captivates, engages and produces results.

Photo by Startup Stock Photos, published on Pexels

Valentine Hutchings

Head of Community and small business enthusiast

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How to do market research for your business idea

Last updated

3 April 2024

Reviewed by

Market research provides valuable data that ensures your business idea resonates with customers and generates demand. If the research confirms consumers are interested, you can build a business delivering the product or service. If not, you can use the findings to adjust your idea so it reflects what customers want.

Conducting market research and analyzing the results can mean the difference between success and failure. Let's look at how you can do market research for your business idea and turn it into a thriving enterprise.

Market analysis template

Save time, highlight crucial insights, and drive strategic decision-making

• What is market research?

Market research refers to analyzing your business's target market to evaluate the viability of your business idea. You will learn why, or even if, consumers want to purchase your service or product, their spending habits, and their purchasing decisions.

By understanding the market, you can:

Make better products

Improve user experience

Offer competitive prices

Find ways to attract the most customers

Market research is critical to starting and growing a successful business.

• Why is market research important?

Consumer behavior plays a crucial role in determining the success of a business. Your consumers will not only buy your products or services but will also either warn against or recommend your company to others.

Understanding what your customers want and how they think, feel, and make decisions is the first step in delivering their needs.

There are many reasons for conducting market research. Let’s look at the most important ones.

Gives you a better understanding of your customers 

Market research will help you, as an entrepreneur, better understand your target customers. You will gather insights into their:

Demographics

Pain points

Buying habits

Preferences

As such, you can tailor your products or services and create a customer experience that appeals to your potential customers . Market research can:

Drive customers to your store, product, or service

Help you turn clicks into conversions

Maintain a customer-centric approach

Build loyalty and trust

Helps businesses make informed decisions

Market research not only provides data about customers but also uncovers market trends and growth patterns. This minimizes your reliance on gut feelings, assumptions, and guesswork.

You can set realistic goals and make the right choices for your business. You'll know:

What to expect in the future

What will work in the market

How you can reinvent your business to stay relevant

Making data-driven decisions will boost your chances of getting it right the first time.

Identifies opportunities for growth

Market research helps startups identify opportunities to improve and gaps they can fill. You may pinpoint new customers who could benefit from your business idea. These could be in areas where your business does not have a presence or is falling behind its competitors.

Market research can also reveal partnership opportunities with businesses that already have an established customer base with your target audience. It can also identify the shortcomings in your business idea and help you avoid expensive mistakes.

You can also uncover opportunities for product bundles, add-ons, and other value-adds that increase your profits. Having the right knowledge can help drive profitability.

Minimizes risks

Every business deals with a range of risks including:

Operational

Business risks usually arise when there's uncertainty around profits, strategy, and other elements. These risks can significantly affect a business's bottom line, including its reputation among consumers, leading to:

Lower profits

Inefficient processes

Possible failure

Conducting market research will help identify the potential risks associated with your business idea early on. You can stay informed of laws and regulations, refine your workflows and processes, and develop risk-management strategies that reduce the chances of failure.

Establishes product or service viability

As an entrepreneur, the last thing you want is to invest resources and money in an idea no one wants or needs. You can use market research to test your business idea before investing.

Market research for your business ideas will help you to;

Understand what the core product and its features need to look like

Gauge market demand

Gather information about your competitors' actions

This will help you validate or refine your initial business idea based on the collected feedback and data.

Shapes marketing and branding strategies

An effective marketing strategy ensures your business stays in sync with your customer base. To create successful campaigns for your business, you must know and understand customers to reach and connect with them.

Market research can help determine how you communicate information about your products or services and your marketing channels. You can develop an informed marketing strategy that puts your business ahead of your competitors.

• Types of market research

Primary and secondary market research are the basic types of market research. However, as technology and marketing become more sophisticated, entrepreneurs can use new ways to discover valuable information that can create better insights, and better product and service experiences.

These market research methods include:

Brand awareness research

Competitor analysis

Market and customer segmentation

Pricing research

Customer satisfaction and loyalty research

Product research

Campaign research

Customer research

The type of market research you choose will influence your critical business decisions. Therefore, select the right research methods to help your business stay relevant, adapt, and compete. Entrepreneurs can use different types of market research to allow for more granular data collection .

• Primary vs. secondary research

Primary research

Primary research involves collecting new data from original sources. This involves going directly to your target market or employing a third party to conduct relevant studies on your specific customers or market segment .

Primary research methods include:

Focus groups

One-to-one interviews

Consumer observation

Data is collected directly from respondents, allowing you to gain specific insights tailored to your objectives. This may include a firsthand perspective on consumer preferences, behaviors, and trends.

Primary research helps you to:

Create buyer personas

Improve your business idea

Segment your market

Secondary research

Secondary research involves using pre-existing data from various sources to gain insights into your target market and industry. This includes reviewing reports, studies, and data collected by others in your industry.

Secondary sources include:

Industry reports

Internet search engines

Government publications

Statistical databases

Academic papers

Industry experts

From secondary research, you will gain broader industry perspectives, competitor strategies, historical data trends, and context for understanding market dynamics. Since most of this information is freely available, secondary research is more cost-effective for startups.

• How to conduct market research for your business idea

1. Define your target market

Entrepreneurs can only gather meaningful insights once they know who to include in their market research. Otherwise, you may waste resources collecting unnecessary data.

First, define and understand your target market. Work out which types of consumers will be included, their interests, and how the data will be collected.

Ask these questions to help you:

Who is your target market as a whole?

How old are they?

What characteristics, interests, desires, pain points, and needs do they share?

Where do they buy similar products?

What are their income ranges?

Where do they live?

What major challenges do they face?

The idea is to visualize your audience and understand their actual characteristics, buying habits, and possible challenges. This allows you to develop marketing research that targets people who are interested in what you offer or plan to provide.

2. Develop a market research plan

Like any other business process, market research requires an effective plan to be successful. You should know what you're trying to accomplish and the information you'll need.

Your market research plan should include the following:

The issues your business idea addresses

Clear objectives and goals

The research methods you'll use to achieve those objectives (the research design)

The estimated time frame to complete tasks

The required budget

Any ethical issues or other considerations that may arise

Planning your market research can save you time, effort, and money. You'll not only target the right audience but also invest in the right sectors and align your research with your business objectives.

3. Study your competitors

Knowing your competitors , what they offer, and how they position themselves in the market can help set you on the right path.

Research your competitors':

Brand reputation

Overall strategies

Marketing campaigns

Revenue or sales volume

Other activities

This can help you determine how to differentiate your business from theirs and learn from their strengths and weaknesses. You'll understand the business landscape and be better able to assess your chances of success.

4. Conduct a SWOT analysis

A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is a powerful way to analyze your business idea. It will help you assess your internal capabilities and the external market conditions to identify potential advantages and challenges.

A SWOT analysis usually entails the following:

Strengths: This involves identifying the strengths of your business idea. Some common strengths you can evaluate include your idea’s competitive advantage, efficiency, and unique qualities.

Weaknesses: Weaknesses are usually areas where you can or should improve. Common areas of improvement include things your competitors do better than you and internal factors that make it challenging to achieve your goals.

Opportunities: These are ways you can grow your business idea and make it more profitable. These are opportunities open to you, trends you can take advantage of, and ways to turn your strengths into opportunities.

Threats: Threats include everything that poses a risk to your business idea. These can be things that prevent you from entering the market or achieving success and growth. Threats to your business may include emerging competitors, a changing regulatory environment, and the possibility of losing relevance.

Typically, strengths and weaknesses are internal factors you can control, while opportunities and threats are external factors that can be anticipated. Conducting a SWOT analysis allows you to identify areas to focus on, build, and work to overcome.

5. Run surveys and focus groups

Surveys and focus groups are effective ways to fully understand your target market and competition. Surveys are straightforward and can be cost-effective to conduct, and the data is relatively easy to analyze. You can use online platforms that deliver surveys through online forums, social media sites, and other convenient means. Your surveys should contain a variety of question types, including:

Open-ended responses

Rating scales

Multiple choice

Focus groups involve gathering a small group of individuals (usually 5–10) to answer questions and provide feedback. The groups are led by a moderator who asks questions, allows discussion, and keeps the conversation moving in a productive direction.

6. Study trends and industry reports

Market trends and industry reports keep you updated on what's happening in your industry or target market. This includes changes, shifts, and recurring trends within a particular market or industry. They give valuable insights into:

Consumer preferences

Economic factors

Emerging technologies

Other aspects that may shape the market's future

You'll learn more about key metrics such as revenue, sales, average selling prices, and growth opportunities. They provide a solid overview of market dynamics and the factors driving it. After reviewing these, you'll be able to identify:

Growing industries to invest in

Barriers or threats you may face

Your major competitors

7. Analyze data

After conducting your research, you'll have information and data to analyze. We recommend using a system that helps you organize your collected data to find actionable recommendations . This can include:

Sorting your data into groups

Identifying patterns

Creating distinct customer personas

You can also use the SWOT framework, spreadsheets, or data visualization software to arrange and analyze your information. When reviewing, look for information that will help you answer your objectives and critical questions.

8. Summarize findings

Once you have analyzed your data, you can summarize your findings in a simple, shareable format. This can be in the form of a summary report containing insights, recommendations, and resulting strategies from the data analysis . You can then share what you learned during the research and analysis with your team members.

Your findings should help you identify:

Opportunities for growth and improvement

Answers that fulfill your objectives

This will help guide product development , marketing strategies, and other crucial decisions that drive success. You can also use summarized reports for future marketing and branding efforts.

9. Validate your business idea

Validation involves evaluating your business idea against the information gathered through market research. This helps ensure your business idea has the potential for success in the marketplace.

You can validate your business idea by determining whether:

There's a need for your product or service

There are enough potential customers

You can do better than your competitors

Your customers validated your idea

You're solving a problem

You can attain the highest rewards and achieve long-term success

Think about the assumptions you have about your business and validate them with real-life situations and data. Assumptions can include:

Your business model

The value you believe your products offer

Your desired pricing

You can also test your products or services with real users to get their opinion and see how it works in the real market. You can then modify your business idea based on what you learn.

• 10 common market research questions for a new business idea

The market research questions you choose will play a vital role in creating an accurate buyer persona and capturing valuable insights. Select questions that will help your business collect precise information about your target market, audiences, and competitors. 

Here are some common market research questions for startups:

Who is our ideal customer? What is the size of our target market?

Who are our biggest competitors? How are they doing business in this market?

What are the problems we'll solve for our target groups?

What regulatory or compliance challenges might we face in this specific market?

What are the current (and predicted) trends impacting the market?

Who would purchase this product if it were available today?

What challenges do you currently face in [relevant industry/problem area]?

What features are most important when considering a [product/service]?

What types of brands are boycotted and why?

Which aspects of our advertising or marketing message are most compelling?

When should you conduct market research?

In ever-changing, highly competitive markets, businesses should always know what's happening in their industry. Therefore, entrepreneurs should be strategic about when to conduct market research.

Typically, you should conduct market research:

Before and after launching a new business

Before and after developing or launching new products or services

Before and after entering new markets

What type of market research is best for startups?

Most startups use secondary research because it's quick and more affordable. However, you can also use modern tools to design robust market research studies. Startups can also benefit from conducting primary research if resources allow.

Should you be using a customer insights hub?

Do you want to discover previous research faster?

Do you share your research findings with others?

Do you analyze research data?

Start for free today, add your research, and get to key insights faster

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How To Come Up With a Business Idea: 8+ Ideation Boosters

Business ideas sometimes appear as a flash of brilliance. They may evolve from a passion project or a desire to solve a problem. Explore effective strategies for finding a great business idea—and validating it.

Every entrepreneurial journey starts with a seed, a small idea that grows into a blooming business. Often, it’s the only thing standing in the way of you and the life you’ve always wanted. But what if you can’t find one? How do you get unstuck and train your brain to produce great ideas? 

Ideas might strike when you least expect it, but often they need to be actively summoned. In this step-by-step guide, learn how to come up with a business idea, with brainstorming exercises and real examples.

Once you find that one idea, understand how to determine if it has the potential to become a profitable business. Plus, take a personality quiz for more tailored ideation tips.

8 ways to come up with a successful business idea

• Find a problem to solve
• Assess your interests
• Audit your skill set
• Improve an existing product or service
• Conduct market research
• Identify an underserved market
• Spot emerging trends
• Get innovative

Let’s be clear: No new business idea is guaranteed to be successful. But if you’re running your ideas through the right checkpoints, asking the hard questions, seeking feedback, and open to pivoting, you have a solid chance of reaching success—whatever success means to you.

1. Find a problem to solve

Many great business ideas start with a problem. If you can identify a problem in your own life or the lives of the people around you, it could inspire an idea. After you’ve narrowed in on an area or industry of interest, find out what pain points people have with the products or services offered within. This might mean iterating on an existing idea or inventing something completely new.

Range Beauty founder Alicia Scott struggled to find the products that wouldn’t irritate her reactive skin. “I just couldn’t get with the makeup brands that were not only ignoring my skin tone but my skin conditions too,” she says. Alicia’s business idea was based on solving that problem, offering reactive skin-friendly beauty products in a range of skin tones.

2. Assess your interests

A good business idea often stems from a founder’s own interests or hobbies. Brainstorm ideas related to things you already enjoy, like a sport, craft, hobby, or subject. Choosing a business idea based on a passion means you’ll have a better chance staying motivated through the twists and turns of starting a small business.

3. Audit your skill set

What are your strengths? Which entrepreneurial traits do you already possess? As you look for an idea for your own business, tap into your existing skills. Many entrepreneurs use this as their starting point. A few examples of this could be:

• Creative skills. Think of ideas that allow you to work with your hands or put your great eye for design to use.
• Technical skills. What services can you offer to help others solve problems?
• Mechanical or construction skills. Can you design and build a new product and a working prototype?
• People skills. What are some business ideas you can pursue that involve working with or helping people?
• Do competitive analysis. Who are the major players in the industry and what do they lack?

4. Improve an existing product or service

A great business idea doesn’t have to be an entirely new invention. Some of the most successful brands are those that iterated on or modernized an everyday product or service. Think Uber for taxis and Tinder for analog speed dating—these companies changed the business model for a longstanding service. 

Is there a product or service in your area of interest that you can improve on? Can you innovate to make it faster, smarter, smaller, lighter? What if you offer it in an unexpected color or texture? Can you take an existing concept and apply it to a new purpose?

That’s what Bartesian did when its founder Ryan Close riffed on the idea of a capsule coffee machine to create the brand’s single-serve cocktail maker. “I understood it was difficult to make great tasting cocktails at home if you’re not a bartender,” Ryan says. Instead of inventing something from scratch, he leveraged existing technology to create something new.

5. Conduct market research

Take a look at the current market as a source for possible business ideas. This is a great option if you’ve already narrowed your idea down to an industry, target audience, or product category. There are several market research tools and exercises you can use to find a gap in the market or a trend worth pursuing. Some of the ways you can do this are:

• Interview or survey potential customers and host focus groups.
• Consult trade publications and industry reports.
• Run relevant keywords through Google Trends to assess interest over time.
• Follow influencers and popular accounts in the industry to understand their audiences.

6. Identify an underserved market

If you’re a member of a niche online community, that might be a good place to mine for ideas. Is there another niche market you can cater to? As a consumer with specific needs, are these needs being met by the market? When finding ideas for an underserved market, it’s best if you’re already a part of that market and can understand its needs. 

When Yelitsa Jean-Charles spotted a gap in the toy industry, specifically for young Black girls, she used a school assignment to explore it as a business idea. The results of that exploration formed Healthy Roots Dolls , a brand helping girls love their curly hair. “When you’re ignored by the mainstream media, you have to become a problem solver,” says Yelitsa.

7. Spot emerging trends

New business ideas are often sprung from consumer trends or trending products . There are several resources available—most of them free—that can help you identify trends as they emerge. Social platforms such as Pinterest and TikTok have dedicated trend pages. You can also see trending topics within social platforms themselves, usually within the search function. On Instagram , navigate to search and you will see a row of trending keywords below the search bar, while in TikTok you can filter search results by “Top” or toggle to “Hashtags” to see the usage volume for related tags. 

Sometimes, though, as soon as you spot a trend, it might already be on its way out. Spotting trends before they emerge might mean translating them into a different industry. That’s what Miguel Leal did when he and his co-founders came up with the idea for Somos . They looked to restaurant trends and imagined how those could be translated to consumer packaged goods.

8. Get innovative

New ideas are often sprung from existing ideas or as a modern replacement for an everyday product. But there’s still room to create something entirely new that the world hasn’t seen before. If you have a knack for design and you can identify a problem not solved by something that already exists, develop a product prototype and test it with your target audience.

7 ideation boosters for aspiring entrepreneurs

Simple routine changes in your life can kick-start a flow of ideas. Exercise, better sleep, more water—all common recommendations for whatever ails you. But taking care of your mental health and wellness can have positive psychological effects like improved confidence and motivation . 

Try these ideation techniques, life hacks, and simple exercises to give your brain a boost and come up with new business ideas.

1. Break your routine 

Shake up your usual routine by taking a new route to work, eating outside rather than at your desk, or doing something new on a Saturday night. A rigid routine might keep you productive , but it’s easy to move through it on auto-pilot, missing out on inspiration.

2. Chill out

There won’t be any vacancy for those fresh ideas if your mind is booked solid with other concerns. Carve out time that’s dedicated to self care , whether for you that’s swinging in the hammock or getting absorbed in hobbies. Go a step further and practice mindfulness, an activity that has been shown to improve divergent thinking. There are plenty of resources, from apps to guided meditation podcasts to help you get started.

Think of this as completely unstructured visual brainstorming. Just start drawing and let your page fill with scribbles, words, and images that flow from your mind. Don’t judge your drawing ability—this exercise is meant to spark creativity.

4. People-watch and observe new surroundings

Be present and take a look around you. Park yourself on a public bench or on the patio of a café you’ve never visited before and take note of what and who you see. Observing how people interact with their surroundings might spark an idea that solves a problem.

5. Meet and engage with new people

Gain energy from people with different perspectives and run ideas by new friends. Join entrepreneur social groups to engage with folks who are keen to swap ideas and give/get feedback. You might even meet your future business partner this way!

6. Consume content and culture

Read books, listen to audio books or podcasts, watch documentaries, or try a new album or genre of music. Whatever your medium, get inspired by other creators. Don’t limit yourself to just business content—even fiction stimulates creative thinking.

7. Try journaling

Ideas might strike you in the middle of a dream or on a bike ride. Get in the habit of jotting them down to revisit later, even if you don’t have the time to fully flesh them out in the moment. If writing doesn’t come naturally to you, try a journal with structured sections, questions, or exercises.

Brainstorming exercises for business ideas

Classic brainstorming

In its most widely accepted format, brainstorming is the process of throwing out any and all ideas unfiltered. Participants call out words or thoughts verbally then engage in conversation to help each other build on ideas. You can set your own rules for the session (like time limits) but the fewer restraints, the more vast the ideas. 

Brainwriting

Brainwriting is similar to the verbal version but is done silently, on paper. This method may be preferable if you are in a larger group—that way all voices have equal opportunity to be heard. 

You can use Post-it notes to gather ideas, then discuss as a group. Other variations on silent brainstorming to investigate are: brain netting (online version using a tool like Miro), rapid ideation (lightning round), or method 6-3-5 (timed and structured).

Storyboarding

Storyboarding is a visual method of brainstorming that you may use in the latter part of your ideation journey. Say you’ve come up with a great startup idea, you’ve gathered feedback, and you’re ready to flesh out that idea. You can use a storyboard to illustrate scenarios or situations that apply to your idea or work through solving a problem via narrative. 

Mind mapping

Mind mapping is a brainstorming format that is great for solo ideation. It involves writing the central idea or theme at the center of a page then “mapping” word associations off of that idea. 

You can then continue to branch out additional word associations from each of those spin-off ideas. This exercise can also be done in a group using a whiteboard or online whiteboarding tool.

How to validate your business idea

Now that you know how to come up with a business idea, it’s time to validate it. This is the process of understanding whether your idea has a market. These methods will help you answer important questions about your business idea and its viability.

Test half-baked ideas

If you’re having trouble validating your ideas on paper, what if you tested them out through a prototype or beta version of your product? It might not be perfect, but it will allow potential customers to interact with your idea and provide feedback you can use to hone the final product. This means you’re not investing in large scale manufacturing until you’re sure your idea is viable. 

Do competitor analysis

Competitive analysis is a market research process that evaluates the strengths and weaknesses of competitors in your industry. It involves gathering data and insights on your competitors, including details about products, pricing, marketing strategies, distribution channels, and customers. 

Analyzing your competitors can help you spot gaps in their offerings—gaps that you can fill with your business. It also provides a benchmark for what’s expected by consumers for your product. This information can be used in your business plan.

Conduct SWOT analysis

A SWOT analysis can help you evaluate what’s good about your business idea and what’s a potential risk. SWOT stands for strengths, weaknesses, opportunities, and threats. This is a framework that prompts you to consider your idea from all angles, including internal and external factors that could impact its success. This can also be included in your eventual business plan.

Engage in trend spotting

If you found your idea through an emerging trend, you can skip this step. But it’s a useful exercise for those ideas that were formed through other means. If you came up with a business idea in the cosmetics industry for example, investigating color trends within that market may help steer your palette in the right direction. 

You can find trending products and other social and cultural trends through Google Trends, publications in your industry, and social media platforms like TikTok and Instagram .

Seek customer feedback

Don’t live in a vacuum. As you start to come up with a few ideas, workshop them with friends or people who would fit the description of your potential customer. Informal polls or surveys on social media might help confirm your idea’s viability.

“I went directly to consumers,” says Yelitsa about her decision to use crowdfunding to validate Healthy Roots Dolls . “I presented the concept to them and let them vote with their money and proved that there was demand.”

Conduct a gap analysis

While competitive analysis can be used to find gaps in the market of your competitor’s businesses, a gap analysis looks at your idea’s own gaps. You can use this process to determine where your business or idea is in its current form, and the ideal future state to become viable or competitive. 

A gap analysis is often conducted by a company after a period of being in business, but you can use many of the same exercises to identify gaps before you launch.

Ideation strategies for every personality type

How you best come up with ideas will depend on your personality type. Do you ideate effectively in groups? Are you inspired by art, nature, or books? Understanding a little more about your personality will help unlock the best strategies for coming up with winning small business ideas .

Take our quiz: What kind of entrepreneur are you?  Then, return to this article and navigate to your Founder Sign below for tailored tips.

Business idea generation for Trailblazers

You’re full of ideas, Trailblazer ! Where you might stumble is focusing on just one or doing the work to validate that idea beyond your passion for it. For you, ideating in a group is ideal, because you could use voices of reason to balance your gut instincts.

Ideation techniques picked just for your personality type are:

• Tap into your community to share your ideas widely and use outside perspectives to help shape your ideas. But share early—if you fall too deeply in love with an idea, you may have a hard time hearing criticism.
• Try visual brainstorming techniques like mood boarding, mind mapping, or storyboarding that let you express yourself creatively.

Business idea generation for Outsiders

Ideation is hard for you, Outsider , because you like to operate within a strict routine. Inside the bubble you’ve created for yourself, it may be challenging to gather inspiration. Pushing outside of your comfort zone will expose you to creative stimuli and help shake off the brain dust. 

Get unstuck and open your mind to new ideas by trying these techniques, handpicked for you:

• Try a more structured brainstorming approach that prompts you with set questions rather than a brain dump style which may be too overwhelming.
• Get out of your comfort zone. Even baby steps like breaking routine or visiting a new restaurant can bring inspiration into your life.

Business idea generation for Mountaineers

Chances are, Mountaineer , you’ve already found your big idea and you’re pushing toward it with pure, uninterrupted dedication. If not, you might be feeling a little lost right now. That’s because you’re driven by goals that you map the rest of your life around. 

Discover your true calling through these ideation techniques picked just for you:

• Call on your most trusted allies—ideally a group of people with diverse backgrounds and perspectives and who are confident enough to challenge your ideas. Bounce ideas in an informal brainstorm or organize a structured session.
• Expand your circles. Seek out new experiences, travel, and meet new people. Expose yourself to situations that inspire and spark ideas. 

Business idea generation for Firestarters

Ideas? You’re dripping with them, Firestarter . If we know you, you’re probably chasing down half a dozen of them right now. Ideas are what drive you, so you’re not looking to nail yourself to just one. For you, finding deep pools of inspiration, ideas, and collaboration is where you’ll thrive. 

Try these methods for gathering ideas, picked for your personality type:

• Surround yourself with folks like yourself who inspire friendly competition, but also seek out counterpoints. Healthy debate will only strengthen your ideas.
• Don’t settle on just one business idea. Narrow your ideas to the most promising and put them into practice. The best ones will reveal themselves through trial and error.

Business idea generation for Cartographers

Your attention to detail and ability to examine all angles tend to produce iron-clad ideas, Cartographer. Where you falter is in letting go. Being too rigid at this stage of the process might cause you to miss truly creative and wild ideas. 

Try these ideation strategies picked just for Cartographers like you:

• Solo mind mapping is a great exercise for Cartographers because it marries creativity and structure.
• After gathering inspiration and landing on a new business idea, it’s time to give it shape. Market research can help you gather data to support your sharp instincts. Leverage free entrepreneur resources to help you where you may have knowledge gaps.

Successful businesses are born from an idea

The best business ideas are those that bloom into thriving brands. But don’t act too quickly on an idea before you validate it first. Every successful founder asked themselves hard questions, conducted research, and tested their ideas before launching their product or service to the world. Put your brand new business idea to the test and you’ll have a better chance of transforming it into a profitable business.

Feature illustration by Alice Mollon

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How to come up with a business idea FAQ

How do you come up with an idea to start a business.

Business ideas are often inspired by the world around you. First, look at your interests and skill set—can you find an idea at the intersection of these two things? Next identify a real world problem or pain points people often have with an existing product or service. Can you find a solution? Use brainstorming exercises and seek inspiration from your life to help you find a viable business idea. 

How do you develop a good business idea?

Once you have a great business idea, it’s time to develop it. Validating your idea is the first step to doing so. Conduct market research to determine if there’s demand for your idea. This can be done through researching industry reports, interviewing your target customers through online surveys, and looking at market trends. After you’ve validated your idea, you can turn your business idea into your own business. 

How do you brainstorm a business idea?

Business ideas are often born from a brainstorming session or other creative process. There are a number of styles of formal brainstorming exercises, including brainwriting, storyboarding, and mind mapping. When brainstorming, remember that this is not the time to edit. Capture everything that comes to mind—even the worst ideas could inspire you to find a great one.

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BUSINESS STRATEGIES

How to come up with a great business idea in 9 steps

• Cecilia Lazzaro Blasbalg

Coming up with a business idea requires determination, preparation and plenty of testing. More importantly, there’s no one way to find your winning business concept, so you'll need to test and research a number of the best ways to help you find the right one.

If you're keen to start a business but have no idea of what you might sell, or offer as a service, we've put together this article to offer the best techniques to come up with a business idea.

How to come up with a good business idea: 9 ways

Brainstorm ideas

Ask yourself, ‘What’s next?’

Use your skillset

Improve an existing business

Solve a problem

Build the same, but cheaper

Fulfill a need

Get in research mode

Invent a new service or product

01. Brainstorm ideas

When coming up with a business idea, our mind can run in circles and we often feel like we're hitting a wall. When this happens, it's probably a good idea to take a breath and then start brainstorming.

Don't be afraid to think beyond just your own ideas when coming up with a business. You can reach out to friends and family for their ideas too. Stay on top of new technology and business trends to glean inspiration. The same goes for staying alert on social media for great ideas or trends, either because someone else is doing it and you think you can do it better—or because someone else's idea triggers your own creativity and inspires a new idea.

02. Ask yourself, 'What’s next?'

Some of the best business ideas are those that can anticipate a trend, new technologies or change. These ideas often originate from asking “What’s next?,” thus inspiring us to think outside the box and evolve as a result.

Consider the example of Medium, an online publishing platform, which launched in 2012 and remains at the forefront of blogging today. As Alexis Lloyd, VP of product design at Medium, said on Wix’s business podcast "Now What?" : “So if you create something now, you want it to be able to be integrated into whatever device or platform comes along down the road…[For example] you had this idea that print media was the winning content mechanism for a very long time and people kept being convinced like, okay, we will just have to figure out which one of these things that are emerging is going to be the next thing.” To sum up, coming up with a business idea means connecting the present with the future.

03. Use your skillset and interests

A business idea might come naturally when you start by evaluating your own skills. For example, if you're crafty, you can decide to sell crafts online . Or, perhaps you can combine your skills with another field that you're interested in. Think: marketing and design, chess and finance or teaching and coding.

Developing a wide range of skill sets can increase your chances of finding the right niche for your next entrepreneurship . You may also want to invest time into learning how to make money with AI to see how you can couple your strengths with the power of modern tech.

04. Improve an existing business

When starting a business , think of a company or entrepreneur you admire and how you can improve upon their idea (e.g., can you find a way for businesses to run themselves ?).

“It’s always easier when you’re starting a company to try to improve an existing idea,” says Paul B. Brown, co-author of the 2012 book Just Start . After all, Hersey did not invent the chocolate bar but was a pioneer in producing bite-sized pieces of chocolate, Hershey Kisses, that turned the company into one of the most popular candy brands in the world.

05. Solve a problem

Another way to come up with new business ideas is by assuming the role of a problem solver. From climate change to better internet privacy, there are numerous issues we face today that are obvious—but lack an obvious or simple solution.

For instance, to tackle the world’s reliance on fossil fuels, Tesla CEO Elon Musk aims to direct everyone toward sustainable energy sources instead. Tesla cars are designed to produce less CO2 than fossil fuel cars; the batteries are designed to last longer and then recycled; and the entire Tesla factory workplace is better than the industry average in terms of safety and sustainability, according to the 2019 Impact Report .

Don't forget that part of coming up with a business idea is understanding what type of business model you will need to make it happen. Solving a problem with your idea might make a freemium business model the best choice, or you might choose to opt for something else. Understanding how you'll solve a problem is great, but you'll need to decide how to create the business around it.

06. Build the same, but cheaper

There are some products and services whose core is unshakeable, but the price is too high for most consumers. If you can offer a high-quality alternative for a lower price, then you’re on the way to becoming a great entrepreneur . This is even better if you hit upon the best businesses to start with little money .

For instance, not everyone can afford a Nespresso machine. However, coffee lovers across the globe appreciate a nice caffeine boost in the form of a tasty espresso. Today’s marketplace is filled with an array of coffee machines producing award-winning espresso drinks at more affordable prices.

07. Fulfill a need

People’s physiological needs include food, water, sleep and sex. At this point on the list, you can consider business ideas in response to meeting any of these needs.

While many existing products and services are designed to do just that, it doesn’t mean every potential way to meet a need has been discovered. Take the reusable water bottle industry as an example of the most competitive markets to enter, yet each year, more companies are launching their own versions of bottles. That’s because these businesses are fulfilling an ever-growing hydration need.

08. Get in research mode

The exploratory research phase of coming up with a business idea doesn't happen in any particular order during the process. However, it’s essential to read and research the industry you’re attempting to break into. You can come up with a simple research plan that states the objectives of the research and lists the type of information you’ll need to gather. Be sure to consider the entire product life cycle ; very early on, you'll need to create a proof of concept (POC) to accurately test your business idea.

You can start your market research or test ideas in a variety of ways:

Surveys: Surveys are a common method of gathering information about a target market. They can be conducted in person, by phone or online. They can be used to gather information about consumer preferences, demographics and/or purchasing habits.

Focus groups: Focus groups are a type of qualitative research in which a small group of people are brought together to discuss a particular topic or product. This method is often used to gather opinions and feedback about a product or service. Try not to use family and friends for these as you'll want unbiased and genuine opinions and reactions to your idea.

Online research : Online research is a popular method of gathering information about a target market. This can include analyzing social media data, searching for industry statistics and trends and using online tools like Google Analytics to track website traffic. You can also use popular SEO tools, like Semrush or Ahrefs to understand more about your competitor's site, including their traffic and keywords.

Competitive analysis: Competitive analysis involves studying the strategies, products and services of competitors to understand the market and identify growth opportunities.

Customer interviews: Customer interviews involve speaking directly with customers to gather information about their needs and preferences. This can be done in person, over the phone or through online surveys. You can also use social media polls to connect with them.

Observation: Observation is a research method in which researchers observe consumers in real-world settings to understand their behavior, emotions and decision-making processes.

Experiment: Experimentation is another form of research, where changes are made in the product or service, and their impact is measured.

Trade shows: Trade shows are events where companies in a specific industry come together to showcase their products and services. Attending trade shows is a good way to gather information about new products and trends in the industry. Similarly, other industry events, including webinars and conferences, are a great way to understand more about your business idea and to connect with like-minded business owners.

Feedback: Don't be afraid to ask for feedback on your business idea, be it a product or service. You can start with friends or family, but also send out amongst potential customers as a free trial, or even to social media influencers. Swap promotion for genuine feedback and then use that to improve on your idea.

09. Invent a new service or product

With so many companies competing in an already crowded marketplace, at the end of the day, you might be left wondering whether there’s anything new to invent — something innovative and unique.

The truth is that a big part of coming up with a good business idea is identifying a need not being met. There are many creative examples of companies tapping into new market needs within the app world, where each app development staked its claim by selling a service that could “change the world.” From cheaper ride sharing to faster food delivery, Uber and Wolt are among the best mobile business ideas to date.

On the product side, take the example of SPANX founder Sara Blakely who created an original undergarment when she realized she didn’t see anything like SPANX in stores. It was her “aha” moment that revolutionized the underwear industry and today, SPANX can be found in nearly every female household in the U.S.

When coming up with a brand new business idea don't forget to factor in potential scalability. If demand really soars, will you be able to scale your business and production to meet it? Is this an idea that can last beyond an early trend and become a must-have product for potential customers over the long term too?

You will also need to check there are no legal or regulatory blockers to a specific business idea in your state or country. There may be specific laws about where such a business can exist or how specific products are manufactured.

How do you come up with online business ideas?

Coming up with an online business idea involves many of the same steps we've already discussed. You'll just need to think more carefully about the type of idea you can run with that can be sold and marketed online. You'll also need to decide which type of online business.

For example, an eCommerce store is clearly a business idea that happens solely online (explore these eCommerce business ideas to get a better idea of your options in that domain). A pet-walking business, on the other hand, can be marketed and booked online, but obviously, pet-walking has to happen in person.

You can additionally take your preferences into account, such as wanting to make money from home . Business ideas that can be started and run completely online include creating and running online courses, online tutoring, app development and testing, virtual bookkeeping and content creation.

How do you come up with a profitable business idea?

When choosing a business idea, it's important to consider time to profitability. How long will it take you to go from a new business to a profitable business? Some ideas, based on resources, might have a faster route to profitability than others. You'll need to start by calculating the potential profitability of your business idea. Consider the costs of production, marketing and other expenses against the potential market size and price customers are willing to pay.

If faster time to profitability is important to you, scan the market to understand the needs and problems of your potential customers. Look for a gap that your product or service can fill. This will help ensure your business idea has a ready market. If you're in a small town, for instance, perhaps consider a service or idea that doesn't currently exist and which there's growing demand for.

On the other hand, understanding what your business competitors are doing and then using it to improve on what they're doing with your idea, might be a faster way to get to profitability than starting from scratch.

If you're leading with profitability over passion for a specific business idea, consider creating a minimum viable product (MVP) and testing it in the market. The feedback can help refine your idea and make it more market-ready.

For a business to be truly profitable in the long run, it usually needs to be scalable. Consider whether your idea has the potential to reach a large market and whether it can be efficiently expanded as demand grows. In theory, any business idea is scalable, as long as you're able to increase production or service provision in line with demand.

Explore more business ideas

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Beauty business ideas

Reselling business ideas

DIY business ideas

Clothing business ideas

Small-town business ideas

Dropshipping business ideas

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Rental business ideas

Family business ideas

B2B business ideas

Scalable business ideas

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How to Come Up With a Good Business Idea

7 min. read

Updated January 5, 2024

Some entrepreneurs have a natural gift for generating ideas—most struggle. But without a good idea, starting a business will be an uphill battle.

Luckily, this is a skill you can improve with the right process and a little practice.

This guide will teach you how to generate hundreds of business ideas and identify what makes a good idea. We even have curated lists of ideas for you to explore. Let’s get started.

How to come up with a good business idea

Coming up with a business idea isn’t a strict process. It’s a series of methods to tap into, explore, and see if something sticks. 

Here are a few tried-and-true ways to generate a business idea:

1. Solve a problem

Your business must solve a real problem . 

The most successful businesses always do. But how do you identify a real-world problem? 

Try one (or all) of the following:

• Think about issues you’ve encountered in your own life.
• Reach out to friends, family, or colleagues.
• Look through Reddit, Quora, and other forums.
• Run a survey.

These are just a few ways to uncover actual problems. Once you’ve identified a few persistent issues, dream up possible solutions. That may lead you to a highly desired business idea.

2. Talk to family and friends

It’s challenging to think up ideas solo. So, reach out to someone you trust.

Your family and friends can be a great source of inspiration. Discuss your desire to start a business with them and ask for their ideas. 

They may have noticed a gap in the market, have a problem that needs solving, or have a unique perspective for harnessing your skillset. 

This outside input can be the spark you need to find a great idea. Plus, you’ll open the door for additional support—such as funding or partnership.

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3. Make tasks easier

The best and most lucrative businesses are often the most mundane. They help solve basic problems by making them easier or more efficient.

To hone in on these simple issues, walk through your day. What tasks do you dread? What undesired work takes up your time? 

These often overlooked pain points are likely screaming for solutions.

4. Build on an existing product or service

A great business idea doesn’t require reinventing the wheel. 

Instead, take an existing product or service and make it better. Improve the design, add new features, or find a new way to market it. You may even be able to introduce a product or service to an underserved market. 

Start looking at the things around you and ask—how could this be easier? How could it be more intuitive, less stressful, and more pleasant? How could it be more affordable?

You may find that even the slightest change will create something unique.

5. Start with a hobby

Your hobbies and passions can be a great source of business ideas. Whether you love baking, photography, or gardening—there’s likely a way to turn your hobby into a business . 

You just need to determine how to monetize your skills or the products you create. If you’re unsure how take it slow and start with a side hustle . You’ll still need to consider pricing, expenses, and how much time to invest—but you’ll have less risk and more time to adapt your hobby into a business.

6. Jump on a trend

Trends can provide excellent business opportunities. Whether it’s a new technology, a fashion statement, or a change in consumer behavior—spotting and capitalizing on emerging trends can lead to successful business ideas. But, there are potential complications you should be aware of.

A very small or non-existent market for this product or service is likely. You’ll need to showcase the problem to stimulate a need many didn’t know they had. Just be sure it has staying power (like AI tools) and is not just a fad (like fidget spinners).

You should expect multiple competitors to emerge as the trend gains traction. Focus on solidifying your brand and build loyalty early on to stay ahead of imitators. 

7. Innovate

Innovation involves developing something new or finding a novel approach to an existing product or service. This requires creativity and a willingness to take risks. Still, it can lead to unique and successful business ideas.

Remember that this may mean no current market for your product or service exists. But if you believe there will be a problem and can convince others, you may be at the forefront of an untapped movement.

What are the qualities of a good business idea?

There’s no genuinely perfect business idea. However, there are clear signs that an idea is worth pursuing and more likely to succeed. 

Clear market demand

There must be a need for your product or service. Meaning your idea needs to, at a minimum, solve a real-world problem for your target customers . 

That’s just the start. 

Will people pay for a solution? Is there a real opportunity to disrupt pre-existing alternatives? 

It may not be a good idea if the answer is no to either question. 

Scalable and profitable

Scalability and profitability are tied together. 

An idea is scalable if you can:

• Attract more customers.
• Accommodate this increased demand.
• Lower costs as you grow.

An idea is profitable if revenue exceeds expenses. 

Now, your business may take time to be profitable. But it should display the ability to grow and scale to achieve profitability. 

If your business idea can’t bring in more customers or decrease costs—you’ll struggle to be profitable.

Fits your goals

Do you want to monetize your passion? Grow quickly and sell? Create a legacy to pass down to your kids?

You need to know what you hope to get from being an entrepreneur. Because only some business ideas will fit your goals. 

So, make sure the business fits your motivation. If it doesn’t, you’ll find it is far more challenging to keep up long-term. 

• No business idea? Try these

If you’re struggling to develop a business idea, check out one of our curated guides for inspiration.

Business ideas you can start for free

Is the idea of spending money holding you back from starting a business? Don’t worry, there are plenty of business ideas out there that require little to no upfront investment.

30+ business ideas using skills you already have

Whether you’ve developed skills from a hobby, work experience, or online courses—there’s a good chance you can use them to start your own business.

Online business ideas

Skip setting up a brick-and-mortar storefront and go digital. Here are some low-cost online businesses you can start right now.

Subscription service business ideas

While we may be past the gold rush for this business type—the right subscription service could still capture consumers’ attention.

Business ideas to start during a recession

An economic downturn typically spells trouble for business owners. It also presents an opportunity for new entrants to fill gaps in the market.

How to generate business ideas with LinkedIn

Learn to use your professional connections to explore, develop, and test potential business ideas.

Questions to reveal customer pain points

Learn how to speak with potential customers and understand what challenges could be solved with the right business idea.

Hottest industries to start a business

What industries show the most significant growth potential for new businesses? Check out our regularly updated list for insights on what industries may provide the best opportunity for entrepreneurs.

Coming up with an idea is just the first step

Once you have your business idea, it’s time to validate if it will work . 

You’ll need to chat with potential customers, run tests, and explore the financial implications of starting your chosen business. If that sounds tough, don’t worry, the next section of our startup guide will help you understand if you have a good business idea.

For now, pat yourself on the back for getting this far. 

Sorting through the thousands of potential options and finding something you believe can be turned into a business is a big step. Now, you need to determine if your idea can become a legitimate business .

Resources and tools to find your business idea

Make researching and selecting a business idea easier with these templates and tools.

Business idea validation checklist

Want to find out if your business idea is a winner? Work through this checklist to test it.

Download Tool

One-page business plan template

Document your research, explore the specifics of your idea, and outline how it could work as a business.

Download Template

Explore your business idea with LivePlan

With a library of real-world sample business plans, industry benchmarks, and step-by-step guidance—you can quickly determine if your business idea will work.

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

Table of Contents

• How to come up with a business idea
• Qualities of a good business idea
• Your idea is the first step
• Resources and tools

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How to Effectively Pitch a Business Idea

• 27 Aug 2020

You’ve identified an underserved need and validated your startup idea . Now it’s time to talk about your business to potential investors. Yet, how do you effectively communicate your idea’s promise and possible impact on the market?

Pitching a business idea is one of the most nerve-wracking parts of any entrepreneur’s journey. It’s what stands in the way between your vision and the financing needed to turn it into a reality. Although daunting, there are steps you can take to ensure a greater chance of success.

Access your free e-book today.

What Makes a Great Pitch?

To make a successful pitch, entrepreneurs must exhibit several characteristics to convince investors to fund their innovative ideas .

Every entrepreneur needs an intricate understanding of their idea, target market, growth strategy, product-market fit , and overall business model . This differentiates your business concept and solidifies the steps needed to make it a reality. The perfect pitch shows investors your proof of concept and instills confidence that they can expect a return on investment .

Check out our video on pitching below, and subscribe to our YouTube channel for more explainer content!

Another crucial component of a successful pitch is understanding the venture capital (VC) ecosystem.

“It’s critical for entrepreneurs to understand the background and motivations of venture capitalists so when entrepreneurs seek them out to help fund their venture, they know what to prioritize in a firm and how to build a strong, trusting relationship,” says Harvard Business School Senior Lecturer Jeffrey Bussgang in the online course Launching Tech Ventures .

To secure funding and support, here are essential steps to ensure your pitch is effective.

How to Pitch a Business Idea

1. know who you’re pitching.

Some entrepreneurs try to get in front of every investor, despite their industry expertise or firm’s investment stage. Consider that, when you accept an investment, it’s about more than money; you enter a partnership. You must perform your due diligence and research potential investors before making your pitch.

When researching, ask yourself:

What industries do they invest in?

A VC firm’s industry focus depends on what the partners’ niche is and where their passions lie. Some firms specialize in a particular sector, such as financial technology (fintech) or education technology (edtech).

For example, Rethink Education is a venture capital fund that invests in early- and growth-stage edtech startups, while Blockchain Capital is dedicated to financing companies innovating in the crypto market. Others are generalists and span several industries.

Knowing the types of companies the firm invests in can help you tailor your pitch and zero in on their presumed priorities.

What stage do they invest in?

If you’re in the earliest stages of business development, you won’t receive growth equity, which is reserved for mature companies that need capital to expand operations, enter a new market, or acquire another business. Before making your pitch, have a rough estimate of the money and resources you need to launch, and then align yourself with investors who can help at that particular stage.

What’s the investor’s track record?

Dig deeper into the investor’s experience and investment history to determine the types of companies they typically finance, the background knowledge they might already have, and whether your personalities will mesh. This information will enable you to modify your pitch and determine if this is the right person or fund to partner with.

“The best venture capitalists become trusted partners and advisors to the founders and team,” says HBS Professor William Sahlman in the online course Entrepreneurship Essentials . “They help recruit key employees. They introduce the company to potential customers. They help raise subsequent rounds of capital. In some cases, they signal that the firm they've backed is a winner, which helps make that assertion true.”

Given the benefits and high stakes, the more you know going into a pitch, the better.

2. Consider How You Present Yourself, Not Simply Your Idea

Although your ideas and skills matter , your personality is equally as important. According to research published in the Harvard Business Review , venture capitalists’ interest in a startup “was driven less by judgments that the founder was competent than by perceptions about character and trustworthiness.”

Investors also want to know they’re entering a partnership with the right people. Jennifer Fonstad, co-founder of Aspect Ventures , acknowledges in Entrepreneurship Essentials that her investment firm “thinks about team and team dynamics as being very critical.”

Investors want to know whether the founders have worked together before, if your startup’s early hires have complementary skill sets, and whether you’ll be flexible, open-minded, and willing to embrace different perspectives.

Think about this as you prepare your pitch. If investors poke holes in your idea, will you get defensive? When they ask for financial projections, will you exaggerate the numbers? Hopefully, your answers are “no”—firms want to partner with founders they can trust who are open to guidance and mentorship—but if you’re second-guessing your reactions, consider what you might be asked and practice your responses.

As Sahlman reinforces in Entrepreneurship Essentials : “Most experienced investors look at the people first and the opportunity second. Even when a team is young and inexperienced, an investor depends on them to make the right decisions.”

3. Tell a Story

When describing your business idea, zero in on the problem you address for your target audience and how you solve it better than the competition. You could do this by presenting a real-life scenario in which you describe the pain point a current or prospective customer faced and how your product or service fixed the issue. This can help engage investors on a personal level and inspire them to see your idea’s potential.

By complementing your spreadsheets and charts with a compelling story, you can paint a fuller picture of your startup’s future and more effectively highlight its business opportunity.

4. Cover the Details

While it’s important to set the stage, you also need to cover the specifics. In your pitch deck, concisely define your value proposition and share a memorable tagline for investors to leave the meeting with.

According to Bussgang in Launching Tech Ventures , every pitch to an investor should contain the following:

• Intro: Focus on answering important questions like who you are, why you’re asking for funding, and what your founder-market fit is.
• Problem: Talk about your ideal customer’s pain point and how you plan to solve it.
• Solution: Explain how your idea is a compelling solution and why it’s better than existing solutions.
• Opportunity and Market Size: Provide your total addressable market (TAM), serviceable addressable market (SAM), and serviceable obtainable market (SOM) through research.
• Competitive Analysis: Understand your unique differences in the market that can help you sustain a competitive advantage.
• Go-to-Market Plan: Clarify how you’re going to reach your customers.
• Business Model: Describe how you’re going to make money.
• Financials: Define what your financial projections are and how you’re going to provide returns for investors.
• The Ask: Detail how much funding you need, how long it will last, and what milestones you hope to achieve.

“VCs will expect entrepreneurs to clearly define the milestones they need to achieve with each round of funding,” Bussgang continues. “Entrepreneurs should know what experiments they will run to reach these milestones and what they expect the results will be.”

5. Show the Roadmap

Although you’re in your business’s early stages, investors want to know how they’ll cash out in the end.

“To truly understand the motivations behind VC firms, remember that they are professional investors,” Bussgang explains in Launching Tech Ventures . “Their objective is to generate the maximum return for their limited partners with a dual fiduciary duty to their investors and the company.”

To clinch your pitch, highlight your exit strategy and the options available.

The most common exit strategies include:

• Acquisition: When one company buys most or all of another company’s shares to gain control of it
• Merger: When two existing companies unite into one new company
• Initial Public Offering (IPO): When a private company issues its first sale of stocks to the public and can start raising capital from public investors

Related: What Are Mergers & Acquisitions? 4 Key Risks

3 Kinds of Pitches for Entrepreneurs

While all effective pitches share foundational elements, you should use different types depending on the scenario. To increase your chances of success, tailor your pitch to your audience and the available time frame.

1. The Elevator Pitch

This is one of the most popular pitches. Use this when you need to communicate their startup’s value in 60 seconds or less.

An effective elevator pitch should be concise, convincing, and convey your startup’s value proposition and differentiators. For tech business ideas, mention the innovative technology that sets your concept apart. At the end, include a call to action, such as the amount of capital required to launch.

2. The Short-Form Pitch

You should portray your business idea’s value to prospective clients and investors as efficiently as possible. This means summarizing the most important elements of your idea in a way that makes them want to hear more. Highlight the market size, how you’ll create barriers for competition, your plan to monetize the business, and how much financing you need.

Short-form pitches can run from three to 10 minutes; if you’re pitching in a competitive setting, note any length requirements. These shorter pitches can pique investors’ interest and earn you the chance to present a long-form pitch.

3. The Long-Form Pitch

Sometimes, you’re fortunate enough to have more than a few minutes to pitch your idea. If this opportunity presents itself, it’s crucial to make the most of your time and address every aspect of your business plan.

“You’re not just trying to start any business,” Bussgang says in Launching Tech Ventures . “You’re trying to create a business that’s profitable, sustainable, and valuable.

Zero in on your story and share a real-life scenario. Detail the market size to illustrate demand and clear examples of how you’ll attract and retain customers, particularly in light of competitors. This will show you’re planning for—and ahead of—future challenges.

You should also have a blueprint for testing product-market fit and early results, along with a detailed monetization plan. Lastly, share your exit strategy and the amount of capital needed to, one day, achieve it. Your long-form pitch should communicate your business concept clearly and concisely, open the possibility for follow-up questions, and capture the investors’ interest.

Consider preparing all three pitch lengths to be ready for any opportunity. It’s important to stay agile so you can modify your pitch to fit specific length requirements.

Landing the Pitch

Every investor prioritizes different data and information. Yet, if you start by choosing the right investor and then align their needs with your proposed market opportunity, value proposition, and exit strategy, you have a chance at landing the pitch.

“In some ways, startup success depends just as much on whether your hypothesis about the future is right, as it does on whether your idea is a good one,” Bussgang explains in Launching Tech Ventures .

As a result, it’s important for you to do your due diligence before pitching your business idea to investors.

If you’re interested in learning more about what investors look for and how you can create value, explore Entrepreneurship Essentials and Launching Tech Ventures , two of our entrepreneurship and innovation courses . Not sure which is the right fit? Download our free course flowchart to determine which best aligns with your goals.

This post was updated on July 28, 2023. It was originally published on August 27, 2020.

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Market Research for a Business Plan: How to Do It in a Day

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Whether it’s your first time using market research for a business plan or this isn’t exactly your first rodeo: a quick refresh on the topic can do no harm.

If anything, it’s the smart route to take. Particularly when you consider modern-day market research data can be obtained quicker than ever – when the right tools are used.

Today, I’m going to explain exactly how to conduct market research for a business plan, and how to access that key data and juicy intel without hassle.

The importance of market research in business planning

They say knowledge is power, and where your rivals and your market are concerned, there’s nothing quite like it. By looking at things like consumer behavior , the competitive landscape , market size, and the digital strategies of others; companies at any stage in their lifecycle can stay relevant, maintain a competitive edge, set strategic direction, and experience growth. Doing periodic market research also helps businesses develop a deeper, more informed understanding of a market, its audience, and key players. If you’re seeking financial backing, doing market research is essential to show credibility and build confidence in your plans.

How to conduct market research for a business plan

Good market research for a business plan should be contextualized with information about your company, its goals, products, pricing, and financials. Sounds like a lot of work, right? Read on to learn how to conduct all the market research for a business plan you’re going to need – quickly, using the most up-to-date data there is. I’ll show you how to:

• Understand your audience
• Identify target personas
• Size your market
• Research the competition
• Discover your unique sales proposition
• Define marketing priorities

Before you start, make sure your business planning document includes the following 10 headings:

This format is considered best practice, so I’ve indicated the specific sections that each element of your market research fits into.

Sound good? Then let’s get started.

1. Understand your audience

What it is – A target audience is a social segment of people who are likely to be interested in your products or services. It’s a snapshot of your target customer base, sorted by certain characteristics. It’s also known as audience demographics and can contain data like age, gender, location, values, attitudes, behaviors, and more.

Where to use this market research in a business plan – Demographical data can help determine the size of your market, which slots into the executive summary, marketing plan, market sizing, and financial sections of the plan. What’s more, when you use it to identify groups of people to target, it can also be used in the products and services, competitive research tools , and SWOT analysis sections.

Bonus: Audience demographics can also help you develop stronger branding by choosing imagery that appeals most to your ideal customers.

How to do a quick audience analysis

Similarweb Research Intelligence gives you the ability to view almost any industry in a few seconds; you can also create a custom industry based on specific players in your market.  Here’s how to see relevant audience demographics in a market. For this example, I chose the airline industry.

View typical audience relevant to your sector with gender and age distribution, along with geographical data . You can see which companies are experiencing growth and at what rate. Audience loyalty is also key to understanding how people behave, if they tend to shop around and what search terms they use to discover sites in any niche.

Read more: Learn more about how to do a demographic analysis of your market’s audience .

2. Identify target personas

What it is – An audience or target persona is a typical customer profile. It starts with audience demographics, and then zooms into a much deeper level. Most organizations develop multiple target personas, based on things like pain points, location, gender, background, occupation, influential factors, decision-making, likes, dislikes, goals, ideals, and more.

Pro Tip: If you’re in B2B, your target personas are based on the people who make purchasing decisions, not the business itself.

Where to use this market research in a business plan – Creating target personas for your business shows you know whom you’re targeting, and how to market to them. This information will help you complete market sizing, product or service overview, marketing plan , and could fit into the competitive research section too.

How to create a buyer persona in five steps

Guesswork does not equal less work – there’s no place for shortcuts here. Your success depends on developing the most accurate representation of who your customers are, and what they care about.

1. Research: If you’re already in business, use market research surveys as a tool to collect information about your customers. If you’re a startup or pre-startup, you can use a platform like Similarweb to establish a typical customer profile for your market. Don’t forget to use mobile app intelligence and website analytics in tandem to build a complete picture of your audience.

Pro Tip: Secondary market research is another good source of intel for startups. You might be able to find published surveys that relate to your products or market to learn more.

2. Analysis: Here, you’re looking to answer key questions to fill in the blanks and build a complete picture of your ideal customer. Tools like Similarweb Digital Research Intelligence, Google Analytics, and competitors’ social media channels can help you find this out. Typical questions include:

• Where is your audience coming from?
• What channels do they use to find your site?
• Do they favor access via mobile site, app, or desktop?
• What are their demographics? Think age, job, salary, location, and gender.

3. Competitive market research: This shows you what marketing channels, referral partners, and keywords are sending traffic to businesses similar to yours When you combine this data with what you learned in sections 1 + 2, you are ready to build your personas.

4. Fill in a buyer persona template: We’ve done the hard work for you. Download a pre-made template below .

Further reading: The complete guide to creating buyer personas

3. Size your market

What it is – Market sizing is a way to determine the potential size of a target market using informed estimation. This is how you find out the potential revenue and market volume applicable to your business . There are three key metrics: total addressable market (TAM), service addressable market (SAM), and service obtainable market (SOM).

Where to use this market research in a business plan – Knowing how big the slice of the pie you’re going after is crucial. It can inform any goal setting and help with forecasting too. This data can be used in your executive summary, marketing plan, competitive research, SWOT analysis, market sizing, operations, and financial sections.

Further reading: How to do market sizing shows you how to calculate the TAM, SAM, and SOM for your business.

4. Research the competition

What it is – Competitive landscaping shows who you’re up against and how your offering stacks up vs others in your space. By evaluating rivals in-depth and looking at things like features, pricing, support, content, and additional products, you can form a detailed picture of the competition.

Where to use this market research in a business plan – The information you gain from performing a competitive analysis can transform what you offer and how you go to market. In business planning, this market research supports the executive summary, product or service overview, marketing plan, competitive research, SWOT analysis, and operation sections.  

How to do competitive landscaping

Using the industry overview section of Similarweb Digital Research Intelligence, competitor research is made quick and easy. Access key metrics on an industry or specific players, then download raw data in a workable excel file or get a PNG image of charts in an instant. Most data can be downloaded via excel or as an image and included in the resource section of your plan.

Here, you can see a summary of a market, yearly growth, and top sites. A quick click to industry leaders shows you market leaders and rising stars. Select any name for a complete picture of their digital presence – use this to spot potential opportunities to gain a competitive advantage.

Read more: See how to do a competitive analysis and get a free template to help you get started.

5. Discover your unique sales proposition

What it is – Not all businesses have them, and that’s OK. A unique selling proposition (USP) is something distinctive your business offers but your rivals don’t . It can be anything that’s unique to a product, service, pricing model, or other.

Why it’s useful – Having a compelling USP helps your company stand out in a market. It can make your business more valuable to a customer vs the competition, and ultimately help you win and retain more customers.

Where to use this market research in a business plan – Your USP should be highlighted in the executive summary, the product and service overview, and the SWOT analysis.

How to find your USP

Unless you’ve developed a unique product or service, or you’re planning to sell to the market at a lower-than-average price point, you’re going to have to look for some kind of service differentiator that’ll help you stand out. In my experience, the quickest way to discover this is through competitive benchmarking. Here, I’m talking about evaluating your closest rivals to uncover things they’re not doing, or looking for gaps that your business can capitalize on.

A competitive review of their site should look at things like:

• Customer support: do they have live chat, email support, telephone support, etc.?
• Content: do they produce additional content that offers value, free resources, etc.?
• Offers: what promotions or offers do they run?
• Loyalty or referral programs: do they reward loyalty or referrals?
• Service level agreements: what commitments do they make to their customers?
• Operations: consider delivery methods, lead times, returns policy etc.
• Price promises: what satisfaction or price promises do they offer, if at all?

Go easy on yourself and create a basic template that details each point. Once complete, look for opportunities to provide something unique that nobody else currently offers.

6. Define marketing priorities

What it is – A detailed plan showing how you position and market your products or service. It should define realistic, clear, and measurable goals that articulate tactics, customer profiles, and the position of your products in the market.

Where to use this market research in a business plan – Relevant intel you uncover should inform the marketing plan first and foremost. However, it can also be used in the SWOT analysis, operation, and financial sections.

How to do it – with a market research example

Using the marketing channels within Similarweb Digital Research Intelligence, you can short-cut the lengthy (and often costly) process of trial and error when trying to decide which channels and activities work best.

Let me show you how.

Using Similarweb Digital Research Intelligence, I can hone in on any site I like, and look at key marketing intel to uncover the strategies they’re using, along with insights into what’s driving traffic, and traffic opportunities.

In less than 60 seconds, I can see easyJet’s complete online presence; its marketing and social channels, and a snapshot of every metric that matters, like referrals, organic and paid ads, keywords, and more. Expand any section to get granular data, and view insights that show exactly where key losses, gains, and opportunities exist.

You can take this a step further and add other sites into the mix. Compare sites side-by-side to see who is winning, and how they’re doing it. While this snapshot shows a comparison of a single competitor, you can compare five at any one time. What’s more, I can see industry leaders, rising players, and any relevant mobile app intelligence stats, should a company or its rivals have an app as part of their offering.

Best practice for market research data in business plans

When doing any type of market research , it’s important to use the most up-to-date data you can get your hands on. There are two key factors for data are timeliness and trustworthiness.

For any market, look for data that applies to any period over the last 12 months. With how fast markets evolve and how quickly consumer behaviors change, being able to view dynamic data is key. What’s more, the source of any data matters just as much as its age.

To emphasize the importance of using the right type of data in a business plan, here’s some timely advice from SBA commercial lending expert and VP of Commerce National Bank and Trust, Steve Fulmer. As someone who, in the past 15 years, has approved approximately $150 million in loans to SMBs; his advice is worth paying attention to.

“ For anybody doing market research for a business plan, they must cite sources. Most new or small businesses lack historical performance data, which removes substantial confidence in their plans. As a lender, we cannot support assumptions in their business plan or their projections if their data hasn’t come from a trustworthy source.”

Wrapping up…

Now you know the six ways to do market research for a business plan, it’s time to knuckle down and get started. With Similarweb, you’ve got access to all the market intel you’re going to need to conduct timely, accurate, and reliable market research. What’s more, you can return to the platform anytime to benchmark your performance , get fresh insights, and adapt your strategies to focus on growth – helping you build a sustainable business that can withstand the test of time.

How do I do market research for a business plan?

By using Digital Research Intelligence tools like Similarweb, you can quickly conduct audience research, company research, market analysis, and benchmarking from a single place. Another method is secondary market research, but this takes more time and data isn’t always up to date.

Why does a business plan need market research?

Doing market research for a business plan is the quickest and easiest way to validate a business idea and establish a clear view of the market and competitive landscape. When done right, it can show you opportunities for growth, strategies to avoid, and effective ways to market your business.

What is market research in a business plan?

Market research in business planning is one of the most powerful tools you can use to flesh out and validate your company or its products. It can tell you whether there’s a market for your product, and how big that market is – it also helps you discover industry trends, and examine the strategies of the rising stars and industry leaders in detail.

by Liz March

Digital Research Specialist

Liz March has 15 years of experience in content creation. She enjoys the outdoors, F1, and reading, and is pursuing a BSc in Environmental Science.

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Business Tips

22 Nov 2023

How to Test an Idea for a Business: A Step-by-Step Guide

Picture this: You're standing at the edge of a vast ocean of possibilities, armed with nothing but your imagination and a burning passion for entrepreneurship. But fear not, intrepid adventurer, for we're here to be your navigational compass on this exhilarating journey.

In this step-by-step guide on how to test an idea, we'll be your trusty co-pilots, showing you the ropes of idea testing with practical tips and a twist of fun and excitement. We'll dive headfirst into the deep waters of market research, customer feedback, and feasibility studies , all while keeping you entertained and engaged.

Think of us as your idea-testing superheroes, ready to unleash our superpowers of knowledge and expertise to help you separate the game-changing ideas from the "meh" ones. We'll equip you with the tools and strategies you need to evaluate your concepts like a seasoned pro.

But wait, there's more! We'll sprinkle in a healthy dose of creativity, and some innovation, and sprinkle even more excitement to make this journey as thrilling as a rollercoaster ride.

So fasten your seatbelts and get ready for an adventure like no other! We'll embark on a quest to unlock the secrets of idea validation, market fit, and business potential. By the time we're done, you'll be armed with the knowledge and confidence to turn your ideas into entrepreneurial triumphs.

So, are you ready to unleash your inner startup idea-testing champion? Let's dive into the exhilarating world of testing business ideas and discover the path to entrepreneurial greatness.

Get ready to soar to new heights!

Table of Contents

Step 1: idea generation, step 2: market research, step 3: customer validation, step 4: feasibility assessment, step 5: prototyping and testing, step 6: iteration and refinement, step 7: business model validation, step 8: go-to-market strategy, step 9: launch and evaluation.

In the first step of our guide, we'll delve into the exciting realm of idea generation. This is where creativity takes center stage, and we unleash the power of brainstorming to uncover potential business ideas.

Encouraging creativity and brainstorming techniques

1. Embracing an open and curious mindset: Approach the idea generation market validation process with a sense of curiosity and a willingness to explore new possibilities. Let go of any preconceived notions and be open to unconventional ideas.

2. Creating a conducive environment for brainstorming: Find a comfortable and inspiring space where you can focus on idea generation. Eliminate distractions and create an atmosphere that sparks creativity, whether it's a quiet room, a park, or a cozy coffee shop.

3. Utilizing techniques like mind mapping, free writing, and idea association: These techniques help stimulate your brain and generate a wide range of ideas. Mind mapping involves visually mapping out your thoughts and ideas, while free writing allows you to write continuously without judgment or restriction. Idea association involves making connections between unrelated concepts to generate innovative new ideas together.

4. Encouraging collaboration and bouncing ideas off others: Engage with like-minded individuals, friends, colleagues, or mentors who can provide fresh perspectives and contribute valuable time to the brainstorming process. Collaborative brainstorming sessions often lead to the generation of unique and promising ideas.

5. Embracing diversity and considering different perspectives: Seek input more ideas from people with diverse backgrounds, experiences, and expertise. This diversity can bring fresh insights and unique angles to the design thinking idea-generation process, leading to more innovative and well-rounded business ideas.

Identifying a potential business idea

1. Identifying personal passions, interests, and expertise: Start by reflecting on your own passions, interests, and areas of expertise. Consider what activities or subjects excite you and align them with potential business opportunities. Building a business around something you genuinely care about can boost your motivation and increase your chances of success.

2. Researching emerging trends and market gaps: Stay up-to-date with current trends, both locally and globally. Look for emerging industries, technological advancements, and changing consumer behaviors. Identify gaps or unmet needs within these trends that can be addressed through innovative new businesses and ideas.

3. Analyzing problems and pain points that need solutions: Pay attention to the challenges and frustrations people face in their daily lives. Identify recurring problems or pain points that have yet to be adequately addressed. These problems can serve as a fertile ground for business ideas that offer practical solutions product solve them and create value for customers.

4. Exploring existing business models and adapting them to new contexts: Study successful eCommerce business models in different industries and consider how they can be adapted or applied to new contexts. Look for ways to improve upon existing models or combine elements from various models to create something unique and compelling.

5. Considering the scalability and long-term potential of ideas: Evaluate the scalability and long-term viability of potential business ideas. Assess factors such as market size, growth potential, competitive landscape, and the ability to differentiate and sustain a competitive advantage. Look for ideas that have the potential to evolve and thrive over time.

By following these detailed steps, you'll be equipped with a treasure trove of potential business ideas ready to be explored further. So, let your imagination be a free tool run wild, embrace the spirit of creativity, and let's move on to the next step of our entrepreneurial adventure!

In the second step of our guide, we'll dive into the crucial task of market research. This step involves gaining a deep understanding of your target market, as well as analyzing the industry landscape and researching your competitors .

By conducting thorough market research, you'll gather valuable insights that will inform your business strategy and help you make informed decisions.

Understanding the target market and industry landscape

1. Defining your target market: Identify the specific group of individuals or businesses that your product or service aims to serve. Consider factors such as demographics, psychographics, behaviors , and needs of your potential target customers or audience. This will help you tailor your offerings to meet their preferences and requirements.

2. Conducting customer research: Engage with your target market through surveys, interviews, or focus groups to gather insights about their preferences, pain points , and purchasing behaviors. This firsthand information will enable you to refine your business idea and develop products or services that resonate with your target audience.

3. Analyzing industry trends and dynamics: Stay updated on the latest trends , innovations, and changes within your industry. Monitor industry publications, attend conferences or trade shows, and join relevant online communities to gain insights into the current state and future direction of the industry. This knowledge will help you identify opportunities and adapt your business strategy accordingly.

Conducting market analysis and competitor research

1. Assessing market size and growth potential: Determine the size of your target market and evaluate its growth potential. This information will help you understand the market's attractiveness and estimate the revenue potential for your business. Use market research reports, government data, and industry associations to gather relevant data.

2. Identifying customer needs and preferences: Understand the specific needs, preferences, and pain points of your target market. Analyze existing products or services in the market and identify gaps or areas for improvement. This will allow you to position your offerings effectively and create a competitive advantage.

3. Researching competitors: Identify your direct and indirect competitors and analyze their strengths, weaknesses, and market positioning. Study their product offerings, pricing strategies , marketing tactics, and customer feedback. This analysis will help you identify opportunities to differentiate your business and develop a unique value proposition.

4. Conducting a SWOT analysis: Evaluate your own business's strengths, weaknesses, opportunities, and threats ( SWOT ). Identify your unique selling points, areas for improvement, potential opportunities in the market, and potential challenges or risks. This analysis will inform your business strategy and help you capitalize on your strengths while mitigating weaknesses and threats.

By diligently conducting market research and competitor analysis, you'll gain valuable insights that will guide your business strategy, product development, and marketing efforts.

In the third step of our guide, we'll focus on customer validation, which involves engaging with potential customers to gather feedback and insights.

This step is crucial for ensuring that your business idea aligns with the needs and preferences of your target market. By actively seeking customer validation, you can refine your offerings and make informed decisions that increase your chances of success.

Engaging with potential customers for feedback and insights

1. Identify your target customers: Based on your market research, identify individuals or businesses that fit your target market profile. These are the people who are most likely to benefit from your products or services.

2. Reach out to potential customers: Utilize various channels to connect with potential customers. This can include social media platforms online groups, industry-specific forums or groups, networking events, or even direct outreach through email or phone calls.

3. Share your business idea: Clearly communicate your business concept, product or service offerings, and value proposition to potential customers just investors. Be open to their feedback similar ideas and suggestions.

4. Listen actively: Encourage potential customers to share their thoughts, opinions, and concerns about your business idea. Actively listen to their feedback and ask probing questions to gain a deeper understanding of their needs and expectations.

5. Address objections and concerns: Be prepared to address any objections or concerns raised by potential customers. This will help build trust and demonstrate your commitment to meeting their needs.

Utilizing surveys, interviews, and focus groups

1. Surveys: Create online surveys using platforms like Google Forms or SurveyMonkey to gather feedback from a larger audience. Design survey questions that capture information about customer preferences, pain points, and their likelihood of using your product or service.

2. Interviews: Conduct one-on-one interviews with potential customers to delve deeper into their thoughts and experiences. Use open-ended questions to encourage detailed responses and gain valuable insights.

3. Focus group or groups: Organize focus groups consisting of a small group of potential customers. Facilitate discussions around your business idea, products, or services to gather diverse perspectives and generate rich insights.

When engaging with potential customers, it's important to approach the process with an open mind and a willingness to adapt your business idea based on their feedback. Use the insights gained from customer validation to refine your offerings, adjust your marketing strategy, and enhance the overall customer experience.

By actively involving your target market in the validation process, you increase the likelihood of building a product or service that truly meets their needs and creates value.

In the fourth step of our guide, we'll focus on conducting a feasibility assessment of small market tests of your business idea.

This step involves evaluating the viability and sustainability of your idea to determine if it is feasible to pursue further. By assessing various aspects of your business, you can make informed decisions and identify potential challenges or opportunities.

Evaluating the viability and sustainability of the business idea

1. Market demand: Assess the demand for your product or service in the target market. Analyze the size of the market, the growth potential, and any trends or shifts that may impact demand.

2. Competitive landscape: Evaluate the level of competition in the market. Identify your direct and indirect competitors, their market share, and their strengths and weaknesses. Determine if there is room for your business to differentiate and succeed.

3. Unique value proposition: Define your unique selling points and how they differentiate you from competitors. Assess whether your value proposition is compelling enough to attract customers.

4. Scalability and sustainability: Consider the long-term sustainability and scalability of your business idea. Evaluate if your business model can support growth and if there are any potential barriers or limitations.

Analyzing financial projections, resource requirements, and risks

1. Financial projections: Develop financial projections to estimate revenue, costs, and profitability. Consider factors such as pricing, sales volume, and expenses. Assess the financial viability of your business idea and determine if it can generate sustainable profits.

2. Resource requirements: Identify the resources needed to launch and operate your business. This includes financial resources, human resources, technology, equipment, and any other necessary assets. Evaluate if you have access to these resources or if you need to secure them.

3. Risk assessment: Identify potential risks and challenges that may affect the success of your business. This can include market risks, operational risks, regulatory risks, or financial risks . Develop strategies to mitigate these risks and ensure business continuity.

By conducting a thorough feasibility assessment, you'll gain a clearer understanding of the viability and potential challenges of your business idea. This assessment will help you make informed decisions and refine your business strategy accordingly.

In the fifth step of our guide, we'll focus on prototyping and testing your business idea.

This step involves building a minimum viable product (MVP) or prototype and conducting product testing to gather user feedback. By involving your target audience in the development process, you can refine your product or service to better meet their needs.

Building a minimum viable product (MVP) or prototype

1. Identify key features: Determine the essential features and functionalities of your product or service that will provide value to your target customers.

2. Develop a prototype: Build a simplified version of your product or service that showcases its core features. This can be a physical prototype, a digital mockup, or a functional demo.

3. Iterate and refine: Continuously iterate and refine your prototype based on user feedback. Incorporate improvements and adjustments to enhance the user experience and address any pain points.

Conducting product testing and gathering user feedback

1. Select test users: Identify a group of target customers who are willing to test your product or service. Ensure they represent your target market.

2. Gather feedback: Provide test users with your prototype and gather their feedback through surveys, interviews, or observation. Ask specific questions about their experience, usability, and any areas for improvement.

3. Analyze feedback: Evaluate the feedback received from test users and identify common themes or patterns. Use this feedback to make further refinements to your product or service.

By prototyping and testing your business or product idea first, you can validate its functionality, usability, and appeal to your target market. This iterative testing process also allows you to make necessary adjustments and improvements before launching your product or service to a wider audience.

As we move forward, we'll explore the next steps of our guide, many entrepreneurs which involve developing a comprehensive business plan and the practical processes for implementing your business idea.

In the sixth step of our guide, we'll focus on iteration and refinement of your business idea. This step involves incorporating feedback from customer validation, feasibility assessment, and product testing to improve your business concept and make necessary adjustments and enhancements.

Incorporating feedback to improve the business idea

1. Analyze feedback: Review the feedback received during customer validation and product testing. Identify common themes, pain points, and areas for improvement and provide feedback .

2. Prioritize changes: Determine which feedback points are most crucial for enhancing your business idea. Prioritize changes based on their potential impact on customer satisfaction and the overall viability of your business.

3. Make adjustments: Implement the necessary adjustments and refinements to your business concept, product or service, pricing strategy, or other relevant areas.

Making necessary adjustments and enhancements

1. Refine your value proposition: Based on customer feedback and market insights, refine your unique value proposition to better address customer needs and differentiate your business from competitors.

2. Improve user experience: Incorporate feedback to enhance the user experience of your product or service. This can involve streamlining processes, improving functionality, or addressing usability issues.

3. Optimize pricing strategy: Adjust your pricing strategy based on customer feedback, market analysis, and financial projections. Ensure your pricing aligns with the perceived value of your offerings and supports your business goals.

By continuously iterating and refining your business idea, you increase its chances of success and better align it with the needs and preferences of your target market.

In the seventh step of our guide, we'll focus on business model validation. This step involves assessing the revenue model, pricing strategy, and overall business model to ensure its viability and potential profitability.

Assessing the revenue model and pricing strategy

1. Revenue model: Evaluate the revenue streams that will generate income for your business. Consider whether your revenue model is sustainable and scalable.

2. Pricing strategy: Review your pricing strategy and analyze its competitiveness and profitability. Assess if it aligns with the solid customer base, expectations and the perceived value of your offerings.

Validating the overall business model and its potential profitability

1. Financial analysis: Conduct a comprehensive financial analysis of your business model. Evaluate the projected revenues, costs, and profitability. Assess if your business model can generate sustainable profits.

2. Scalability and growth potential: Consider the scalability of your startup capital business model and its potential for growth. Determine if your business can expand its operations and capture a larger market share.

By validating your business model, you ensure that it is financially viable and has the potential to generate sustainable profits. This step helps you make informed decisions and refine your business strategy accordingly.

In the eighth step of our guide, we'll focus on developing a comprehensive go-to-market strategy. This step involves creating a plan for marketing and sales that will effectively reach your business name's target audience and generate customer interest.

Developing a comprehensive marketing and sales plan

1. Identify target audience: Clearly define your target audience based on customer validation and market research. Understand their demographics, preferences, and behaviors.

2. Positioning and messaging: Develop a compelling brand positioning and messaging strategy that resonates with your target audience. Highlight the unique value proposition and benefits of your offerings and how many customers.

3. Marketing channels: Identify the most effective marketing channels to reach your target audience. This can include digital marketing, social media, content marketing, advertising, public relations, or direct sales .

4. Sales strategy: Define your sales strategy, including the sales process, sales team structure, and customer acquisition tactics.

Identifying key channels and tactics to reach the target audience

1. Channel selection: Determine the most suitable channels to reach your target audience based on their preferences and behavior. This can include online platforms, physical retail, partnerships, or distribution networks.

2. Marketing tactics: Select specific marketing tactics and campaigns to promote your business . This can include email marketing, search engine optimization (SEO), paid advertising, influencer marketing , or events.

By developing a comprehensive go-to-market strategy, you increase the visibility of your business, attract prospective customers, and generate sales.

In the ninth and final step of our guide, we'll focus on launching your business idea and continuously evaluating its performance to make informed decisions and drive success.

Implementing the business idea and tracking key metrics

1. Launch marketing plan now : Execute your go-to-market strategy and launch your business. Ensure that all necessary resources, systems, and processes are in place.

2. Key performance indicators (KPIs): Define and track key metrics that align with your business goals. This can include sales revenue, customer acquisition cost, customer retention rate, or website traffic.

Continuously evaluating and adapting the business based on results

1. Regular assessment: Continuously monitor and evaluate the performance of your business. Analyze the key metrics and compare them to your projections and industry benchmarks.

2. Adaptation and improvement: Based on the evaluation results, make necessary adaptations and improvements to your business strategy thought process, marketing efforts, product or service offerings, or customer experience.

By launching your business idea and continuously evaluating its performance, you can make data-driven decisions, identify areas for improvement, and drive the growth and success of your business.

Remember, entrepreneurship is an ongoing journey, and these steps provide a framework to guide you through the process. Stay open to learning, adapt to changes in the market, and continuously innovate to build a thriving and profitable business together.

Beyond Brainstorming: Practical Steps to Test Your Business Idea!

Now that you have a step-by-step guide to follow, it's time to take action and pursue your entrepreneurial dreams. Remember, entrepreneurship is a journey filled with challenges and opportunities. Embrace the process of testing and refining your business idea, and don't be afraid to seek feedback and make necessary adjustments along the way.

Believe in yourself and your ideas, but also remain open to learning and adapting. Surround yourself with a supportive network of mentors, peers, or advisors who can provide guidance and insights. Stay resilient, as success may not come overnight, but with perseverance and dedication, you can build a successful business.

So, take that first step, start your online business by testing your idea, and embark on the exciting path of entrepreneurship. The world needs innovative ideas, unique solutions, and passionate entrepreneurs like you.

Diane Eunice Narciso

Diane Eunice Narciso is a content marketer, strategist, and writer who's skilled and passionate about marketing, social media, eCommerce, etc. And is also an expert in sales and business development nurturing strategic partnerships and collaborations.

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How to do Market Research for Your Business Idea

Perhaps you have an idea for the next top-selling gadget, an app to help make people’s busy lives better or a method to sell professional services in an innovative way.

Once you’ve come up with a business concept and decide you want to bring it to market, it’s time for planning and preparation. Performing market research before launching a new business idea is an important step to help ensure your new endeavor will be successful.

What is market research?

Market research is the process of learning why consumers will want to purchase your service or product. The details you gather will show you what your target market’s needs and preferences are. You can learn what consumers’ spending habits are like and the types of purchasing decisions these people make. Having this information and analyzing it thoroughly can help you figure out the best way to make your offerings known and price them in a way to attract the most customers.

The following steps can help you get started.

How to do market research

1. read about the market..

There are market reports for most industries. Even if your idea seems unique, such as a new type of toy, you can find information about different aspects of the toy market, including pricing and what toys are selling well. Reading these reports and those in trade journals can show you current and predicted trends, which gives you a better idea of how your product or service might perform.

2. Perform customer research.

You’ll want to know a lot about the type of people who may be your future customers. This includes information about who they are, such as their age, education level, location and occupation. You’ll need to review their current buying habits and whether they’re willing to pay more for quality or they’re adhering to a budget and using coupons while focusing on cost.

Much of this demographic information is available on the U.S. Small Business Administration’s website . You can use this data to determine which groups are more likely to purchase from you than others — and if there are other groups you want to target and sell to.

You’ll also need to analyze information to determine why your target group would buy your product instead of something from another company. Start by finding out who the customers are for similar products or services, based on market reports.

3. Interview potential customers.

Once you find these potential customers, you’ll want to ask about their needs and what they want in a product or service. You can do this with an online poll or survey on social media . Sending out a survey link to online groups where these potential customers spend time is a good option.

For example, if your target customers are mothers of young children, put the link on a social media platform where these women share tips, or ask a few specific women to share the link with others who meet that description.

Reaching out to potential customers is essential for understanding if or how your product will be relevant in market. Some key answers you can gain from this include:

• What products or services already exist?
• How much are customers willing to pay?
• How can products or services be better?

4. Understand the competition.

Learn about other companies in the same or a similar industry. By comparing companies that have similar products, you can better understand the business landscape and learn how they’ve succeeded. This can also help you determine your chances of success. Company size doesn’t necessarily matter here. You can research established firms of a similar size or start-ups, be they private or publicly traded. Speaking with potential customers can also clarify what they currently like about the competition and areas where they feel their needs aren’t being met. Reading online reviews, talking with customers in person or online, and conducting surveys are all useful ways to obtain this information.

5. Testing the business idea

The last step is testing your business idea. You could offer a business service to a few customers to get their opinion and see how it works in real life. If you’re making a product, create a prototype and let others use it to get their feedback on whether it’s useful, if it fits a need and how much they would pay for it. You can modify your business idea based on what you learn.

Launching a small business can be challenging, even with a great idea. Find more tips on how to successfully start your business , and consider how you plan to protect your company from potential damages. With small business insurance , you can have the peace of mind that you’re covered if the unexpected happens.

• business idea
• market research
• starting a business

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Five considerations for finding your business idea.

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So how do you come up with a business idea? Start with determining what good or service your ... [+] business will provide your customers. (Illustration by Paul Blachford/PC Plus Magazine via Getty Images)

If you have made the decision to start a small business, the first thing you will need is a business idea. You probably already know the industry where you want to start your business, but the idea for your business is the foundation for what will set you apart from potential competitors and help you attract customers.

To give you an example, you may know you want to open your own restaurant, but what type of restaurant should it be? Should it be a food truck serving uniquely named burgers, a sit-down restaurant that fuses different types of cuisines, or something entirely different? That is your business idea.

So how do you come up with a business idea? Start with determining what good or service your business will provide your customers. Here are five factors to consider when deciding what your business will sell.

1. Background and Experience: In whichever industry you choose to open your business in, it is important to have a deep understanding of how the specific industry operates, and how you can sell your goods/services. This knowledge can help you formulate a business idea that can not only give you a leg up when breaking into the market, but also help set you apart from your competition.

2. Demand for Your Idea: A business idea is only valuable if there are people willing to pay you for it. When coming up with a business idea, be sure to complete market research and find out if there is demand in your area.

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3. Your Community’s Needs: Your business idea needs to be one that serves a need in your marketplace. Talk to your friends, family, and neighbors to see what goods or services that they feel are missing in their lives, and see if you can fill that need. If you have the funds and time, an online survey could also be helpful.

4. Technology and Market Changes: You want your business idea to be one that will be profitable for many years to come. One of the best ways to ensure that your business has a future is to provide a product or service that will be necessary in the future and can adapt to technology and market changes. Do research on the latest changes in technology and market trends to see where your business may be a good fit.

5. Resources: The scale and size of your business will be affected by the resources at your disposal. See what capital you have, and research what supplies you’ll need for specific business ideas before settling on one.

Once you have done more research on your idea, the next step is to lay it out in a business proposal. Business proposals include a summary of your research, the goals for your business, and information about your business idea. This will allow you to see how your idea looks on paper and move forward with it.

Choosing the right business idea and turning it into action may seem overwhelming, but this guide can help you find that right idea and move forward with it.

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Have a Business Idea? 6 Ways to Research Your Industry. When deciding to launch a business, it's important not only to talk to potential customers, but to gather all of the industry data you can. Here's how to do it.

By Teresa Ciulla Dec 18, 2014

Opinions expressed by Entrepreneur contributors are their own.

In their book, Start Your Own Business , the staff of Entrepreneur Media, Inc. guides you through the critical steps to starting a business, then supports you in surviving the first three years as a business owner. In this edited excerpt, the authors explain what secondary market research is and the different sources you can use to gather it.

When conducting market research for your new business, you'll gather two types of data: primary and secondary. Primary research is information that comes directly from the source—that is, potential customers. Secondary research involves gathering statistics, reports, studies, and other data from organizations such as government agencies, trade associations, and your local chamber of commerce.

The vast majority of research you can find will be secondary research, plenty of which is available for free to entrepreneurs on a tight budget. The best places to start? Your local library and the Internet.

Reference librarians at public and university libraries can point you in the right direction. Become familiar with the business reference section, also. Two good sources to look for: ThomasNet , an online resource that connects industrial buyers and sellers, and the Hoovers Industry Reports . Both sources can help you target businesses in a particular industry, read up on competitors or find manufacturers for your product.

To get insights into consumer markets, check out the Statistical Abstract of the United States . It contains a wealth of social, political, and economic data. Ask reference librarians for other resources targeted at your specific business.

In addition to libraries, here are 6 other sources of secondary research:

Associations.

Your industry trade association can offer such information as market statistics, lists of members, and books and reference materials. Talking to others in your association can be one of the most valuable ways of gaining informal data about a region or customer base.

Look in the Encyclopedia of Associations , found in most libraries, to find associations relevant to your industry. You may also want to investigate your customers' trade associations for information that can help you market to them. Most trade associations provide information free of charge. Also read your trade associations' publications, as well as those aimed at your target customers, to get an idea of current and future trends and buying patterns.

Government guidance.

Government agencies are an invaluable source of market research, most of it free. Almost every county government publishes population density and distribution figures in widely available census tracts. These publications will show the number of people living in specific areas, such as precincts or neighborhoods. Some counties publish reports on population trends that show the population 10 years ago, five years ago and today. Check local employment figures for the area, too. A stagnant job market—or worse, a consistently declining one—could mean fewer people will be able to spend money, even on necessities.

The U.S. Census Bureau turns out reams of inexpensive or free business information, most of which is available on the Internet:

• The Census Bureau's State and Metropolitan Area Data Book offers statistics for metropolitan areas, central cities and counties.
• The Census Product Update is a monthly listing of recently released and upcoming products from the U.S. Census Bureau. Sign up for a free email subscription .
• County Business Patterns reports the number of a given type of business in a county by ZIP code and metropolitan and micropolitan statistical areas.
• For breakdowns by geographical area, look to the Economic Census , which is published every five years.

Most of these products are available online or at your local library. If not, contact the Census Bureau at (800) 923-8282.

The U.S. Government has an official web portal that's another good source of information. For instance, at the USA.gov website , you'll find a section for businesses that's a one-stop link to all the information and services the federal government provides for the business community.

Or you might try the Commerce Department's Economic Indicators web page. Literally every day, it's releasing key economic indicators from the Bureau of Economic Analysis and the Census Bureau.

Maps of trading areas in counties and states are available from chambers of commerce, trade development commissions, industrial development boards and local newspaper offices. These maps show major areas of commerce and can also help you judge the accessibility of various sites. Access is an important consideration in determining the limits of your market area.

Community organizations.

Your local chamber of commerce or business development agency can supply useful information usually free of charge, including assistance with site selection, demographic reports and directories of local businesses. They may also offer seminars on marketing and related topics that can help you do better research.

Financial and business services firm D&B offers a range of reference sources that can help startups. Its "Regional Business Directories," for instance, provide detailed information to help identify new business prospects and assess market potential. D&B's Million Dollar Database can help you develop a marketing campaign for B2B sales. The database lists more than 34 million companies and includes information regarding the number of employees, annual sales and ownership type. The database also includes biographical information on owners and officers, giving insight into their backgrounds and business experiences. For more information, go to www.mergentmddi.com . Visit the main website , or call (866) 503-0287 for more information.

Going online.

Start by searching for business databases. You can find everything from headline and business news to industry trends and company-specific business information, such as a firm's address, phone number, field of business and the name of the CEO. This information is critical for identifying prospects, developing mailing lists and planning sales calls. Here are two to get you started:

KnowThis.com's virtual marketing library includes a tab called "Marketing Links" that contains links to a wide variety of market research web resources. You can simply type in what you want to do, and voila, results for resources.

MarketResearch.com has research reports from more than 700 sources consolidated into one accessible collection that's updated daily. You pay only for the parts of the report you need with its "slice and dice" feature called Profound. After paying, the information is delivered online to your personal library on the site. Its "In a Nutshell" series offers three- to four-minute videos on the highlights of various topics.

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70 Small Business Ideas for Anyone Who Wants to Run Their Own Business

Published: March 19, 2024

A good business idea may seem hard to come by, but with some planning and preparation, you can easily launch a small business to supplement your income — or become your own full-time boss.

Maybe you already have an idea of the business you’d like to start. But while you might feel ready for a new venture and passionate about your idea, you might be looking for some direction.

To help get you started, here's a list of small business ideas separated into a few sections:

• What makes a good small business?

Best Small Business Ideas

Best businesses to start with little money, home business ideas.

• Online Businesses Ideas

Easy Businesses to Start

Business ideas for students, creative small business ideas, how to start a small business at home, starting a small business: faq.

The first step to becoming a successful entrepreneur is finding a business idea that works for you. In this article, you’ll find dozens of small business ideas you can start from home and scale up as your clientele grows. Let’s get started.

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What makes a good small business idea?

Not all small business ideas are made equal: Some require more effort and funding than others, while some can be launched with few resources — or resources you already have. As a potential small business owner, you’ll want to save as much money as possible on training, rent, supplies, and other necessities.

Let’s go over what makes a good business idea:

• Requires little to no training . A good small business idea will ideally leverage your existing field of expertise and require little to no training. That will not only shorten your time-to-launch, but also lessen your expenses, since training courses can cost a significant amount of money. Plus, you’ll be more confident offering services that you feel prepared to deliver.
• Requires low setup costs. Your business should be cheap to start. Maybe you only need to purchase a website domain or buy a desk for your garage.
• Requires little hands-on inventory or supply management . A great business idea needs few supplies and little inventory management. If you want to sell physical goods, you can either try drop-shipping and manually make goods in small batches.
• Is based online . The best small business ideas are based online and can be carried out from your personal computer. This will automatically lower your commuting costs and give you greater flexibility over your personal and work life.
• Can sustainably be managed by few people . As a small business owner, you won’t have the funds to hire other people to help you run your business — at least not at first. A good business idea should give you the ability to run your business on your own.

Airbnb Co-founder, Brian Chesky, said, “If we tried to think of a good idea, we wouldn’t have been able to think of a good idea. You just have to find the solution for a problem in your own life.”

If you’re like Brian and you’ve already thought about a solution for a problem you encounter in your life — or you’re on the path to doing so — then starting a small business may be in your future. It may also be for you if you dream of clocking out of your nine-to-five job for the last time and becoming your own boss.

Below, we include the best ideas for you to start your small business — with resources and examples to help you get started.

1. Handyman

8. Life/Career Coach

If you have experience navigating career, personal, and social transitions successfully, put it to good use as a life or career coach. Many of us are looking for guidance in our careers — and finding someone with the time to mentor us can be tough.

Life/career coaches don’t come cheap, but they are able to offer clients the intense and hands-on training and advice they need to make serious moves in their personal and professional lives. After all, everyone needs some uplifting advice from time to time.

To start your life/career coaching business with confidence, you can look for a certification program (like the Life Coach School’s or Diane Hudson’s ), then apply your skills as you acquire new clients.

A resume writing business is economical, has few overhead costs, and has few educational requirements. We still recommend having an Associate’s or Bachelor’s degree and a few resume samples on hand. If you still feel that you need to brush up on your resume writing skills, you can take a course like Coursera’s or LinkedIn Learning’s .

Once you’ve gotten resume writing down, you can expand your business to include cover letter writing and even offer career coaching services in conjunction with these services.

10. Freelance Writer

If you have writing skills , there’s someone out there willing to pay you for them. Write blog posts, magazine articles, and website copy galore — just make sure you have a body of work built up to share with potential clients. Even if you create a few sample pieces to have on hand, they’ll help exhibit your work and attract new business.

To become a freelance writer, it’s essential to choose a specialty. For instance, you might choose to only write for publications in the healthcare industry (maybe because you were previously a healthcare worker) or focus on lifestyle publications. Whatever the case, specializing will help you find your niche market and gain confidence as a new freelancer writer.

There are no educational requirements for freelance writing, but you do need strong writing skills. It also helps to enjoy writing. While certification may be beneficial, getting practice and writing every day is more important. Try these writing prompts to start.

11. Landscaper

Mowing, tree-trimming, and seasonal decor are all neighborhood needs. If you have or can acquire the equipment, a landscaping business can be a lucrative affair. It’s also a great choice if you enjoy doing it for your own home and have a good eye for landscape design.

The good news is that you can start small. For instance, you could offer your neighbors seasonal planting services and start with a few perennial plants, or simply offer mulching services.

To grow your landscaping business, you should consider taking some formal training. The following organizations offer courses:

• New York Botanical Gardens

After completing a course and getting enough experience, you can apply for a certificate from a landscaping organization. While a certificate isn’t necessary to work in the field, it can build your credentials and help you make industry connections to take your landscaping business to the next level. The Association of Professional Landscape Designers offers one potential certificate you could pursue.

Some states require licensure, especially if you’ll be using pesticides and fertilizers. Be sure to review the requirements for your state.

Learn some of the basics now with this video on landscape design from Lowe’s:

12. Videographer

Video production requires you to have invested in the equipment up front, which can be quite expensive. But that’s also what makes your services so valuable. Make sure you have a reel of your work to share or create a website with several selections of your work available for interested viewers.

There are no educational or licensure requirements for starting a video production business. As with writing and other creative arts, though, it pays to specialize. Real estate videos differ radically from wedding videos, and wedding videos differ radically from in-studio interviews and testimonials. By specializing, you target a highly specific customer who’ll benefit the most from your services, and you can also skill-up more effectively in one shooting style.

While you can find general classes on videography, you should consider taking a class in the type of videography you’d like to do. For instance, you could take The Complete Wedding Videography Course .

Hot tip: If you’re interested in specializing in video marketing, check out The Ultimate Guide to Video Marketing and download our starter pack below.

13. Photographer

Start by conducting photo shoots for your family and friends. As you build a body of work, ask for referrals and reviews. Photography businesses often grow by word of mouth, so create a Facebook page where you can tag recent clients. Photos where you tag those clients will show up in their friends’ newsfeeds, where they can view your work. You can also ask them to leave reviews on your Facebook business page.

Like with a video production small business, you’ll want to specialize. Will you do product shoots or portraits? How about wedding or fashion photo shoots? Once you specialize, you’ll be able to create a body of work that most accurately represents your strengths.

There are no educational or licensure requirements for starting a small photography business. Still, we recommend investing in a few photography courses, especially if you haven’t used your camera in a while. Some courses you might start with include:

• Cornell’s Digital Photography Certificate Program
• New York Institute of Photography’s Course

From there, seek courses that help you build skills in your chosen specialty.

If you’re not sure where to start with freelance photography, take a look at Erica Clayton’s journey into the business below. Her advice? Give yourself a firm deadline to turn a profit.

14. Bed and Breakfast Owner

Some consulting industries are more competitive than others, so be sure to complete your research before starting a small consulting business. One way to find out how competitive a consulting niche is by doing keyword search . If your target niche is highly searched or is already dominated by big companies, you may have a harder time breaking in. You can use keyword research tools to uncover keyword volume and local demand.

If there’s room for you to enter the market, the next step is to land your first clients. Be sure to participate in local networking events covering your niche and reach out to potential prospects through cold calling and emailing. Investing in dedicated sales software can also help measure and improve your emailing strategy, as well as keep track of worthwhile leads.  

12. Event Planner

An event planning business is an excellent choice if you have great organizational and interpersonal skills, and it’s relatively cheap to start. You might choose to specialize in a specific type of event — like weddings or company meetings — or set yourself up as an event planner of all trades.

The good news is that event planners are always in demand. It’s not an easily automated job, so this small business idea is set to thrive regardless of the digital landscape. To start, you’ll want to look for a platform that will easily allow you to advertise your availability, such as event planner directories like Eventective and WeddingWire .

If you’re highly organized, detail-oriented, and have experience planning large events, it might be time for others to benefit from your skills.

13. Personal Assistant

Personal assistants help business owners and executives take care of administrative tasks. To launch a freelance personal assistant business, you should leverage networking opportunities on LinkedIn and attend small business events at local chambers of commerce. Most local business owners might not even know they need a personal assistant until you market your services to them.

If you’re an organized, highly-detailed person, the life of a personal assistant might be for you. Don’t want to be tied to one office or person all day, every day? Consider becoming a virtual assistant, which allows you a more flexible work environment.

To become an assistant, choose a niche — will you be helping women business owners specifically? Do you have a specific field of expertise, like bookkeeping? A website can also go a long way, and be sure to print business cards for you to hand out during networking events.

14. Consignment Shop Owner

If you have an eye for style but don’t want to invest in the inventory of a brand-new boutique, consider starting a consignment shop. It will allow you to curate a collection of clothing that matches your goals and aesthetic without the overhead of a boutique selling entirely new garments.

The beauty of a small consignment business is that you can now start one online. You can sign up on a platform such as Poshmark , Depop , and even Etsy , then easily start selling your own used fashion from home.

Once you’ve defined your niche — such as vintage clothing, unique locally made art, or colorful shoes — you can begin sourcing new products from your local stores and thrift shops.

15. Caterer

If the personal chef gig is too restrictive for your schedule, consider catering instead. Pick your projects, work on fewer but larger events, and hone in on your time management skills.

Becoming a caterer is a natural step for those who are used to cooking for large events — for instance, you may have already catered your friend’s wedding or brought a 20-person meal to a potluck (that counts, too!).

It’s essential that you have enough temperature-regulated storage for the meals prior to each event, and that you arrange for reliable, temperature-controlled transportation to and from your home kitchen. Alternatively, you can lower your costs by inviting customers to pick up their order at your home.

16. Gym Owner

Kickboxing gyms, yoga studios, CrossFit, oh my! Turn your passion for fitness into a community for others by creating your own gym — start one from the ground up, become an affiliate, or open a franchise location.

Available franchise opportunities include Anytime Fitness, Orangetheory Fitness, Pure Barre, Planet Fitness, Crunch Fitness, and more. Be prepared to take out a loan to finance your franchise — most agreements start with fees upward of $20,000. But the payoff can be tremendous due to brand recognition. You’ll have no trouble recruiting new members as long as you use local marketing strategies .

Alternatively, you can create a local studio, but ideally, it should be for a specific activity instead of general fitness. Yoga, pilates, bootcamp-style gyms, and martial arts perform well as independent fitness studios.

17. Boutique Agency Owner

What’s your specialty? Whether it’s marketing, social media, or PR, it might be time to start your own agency. Many other small businesses need this type of help but don’t have the resources or volume to necessitate a full-time position.

To start an agency, you would ideally have worked in your specialty for a number of years. You should also be prepared to interface directly with clients, fulfill their requirements, and temper their expectations (if they want results in an unreasonably short amount of time).

Consider building a small team and learn from other entrepreneurs who’ve successfully started their own agencies, like Duane Brown of Take Some Risk .

18. Coffee Shop Owner

Turn your caffeine addiction into something a little more lucrative. Opening a franchise or buying an existing shop are lower-risk entry points to the coffee game, but they usually require a little more cash upfront. Starting a shop from scratch requires more planning and work — but it also maximizes your earning potential in the future.

A coffee shop is an excellent fit if you already have a full-time remote job and wish to supplement your income with a small business. You can manage the coffee shop as you work at one of the tables, but be sure to have the budget to hire an experienced barista who can pick up the slack.

If you would like to open a coffee shop and run it full-time on your own, you’ll need to undertake barista training, understand worldwide coffee sources, and have excellent customer service skills.

19. Moving Company

A truck, moving equipment, manpower, and the correct permits and insurance are the building blocks of starting your own moving company . Before you buy your first fleet of trucks, however, start small with a moving van and keep your costs low.

Still sound like too much of an initial investment? Consider offering packing services only, which have a much lower financial barrier to entry. You can partner with moving companies and offer to do their packing, or have them refer clients to you.

You could even take a niche approach to the industry as Astro International has by offering international moving services.

2. Vending Machine Owner

Since 2015, the growth rate for vending machine businesses has increased 1.4%. Even as social distancing restrictions are still in place, this business can still be lucrative if you choose the right locations. High-traffic is key — places like hospitals, schools, and community centers are smart places to start placing your machines to generate enough revenue to cover cost and turn a profit.

3. Social Media Manager

Do you have a knack for social media? As a social media manager, you can use your skills to manage the social media accounts for companies and even individual people. Influencer marketing has become more common and many influencers rely on marketing agencies or employees to help them run their social channels.

Online Business Ideas

If you want a business idea that you can run entirely online, check out the ones below. These ideas are ideal for those looking for a passive income stream. In other words, you shouldn’t need to do too much manual work to launch these businesses from your home or preferred business location.

1. Become an online reseller.

To become an online reseller, all you need is some business savvy and some funds to invest in product stock from manufacturers — or, of course,the willingness to sell your own used items. Generally, this is a low-touch but high-performance way of creating a passive income online business.

Online resellers usually use a platform, such as Facebook Marketplace or Amazon Sellers, to sell either their own or manufacturers’ stock. The benefit of using Facebook Marketplace is that you can begin today with your own Facebook account, and simply list items that you already own.

Interested buyers typically drive directly to your home for pick-up — but if you’re not interested in human interaction, you can leave it outside and have the buyer pay via an online platform.

Blogging is one of the most accessible small businesses to start, and there are countless niches to choose from. That said, because there are many blogs online, you’ll need to learn blog SEO and keyword research to ensure your audience finds you. That way, you actually make money out of your blogging efforts.

The great news is that a small blogging business has a ridiculously low overhead. All you need is a custom domain and your time for writing blog posts. Although finding the right topic ideas and outlining your posts may seem challenging at first, especially if you’re new to writing, you can let a blog ideas generator do most of the grunt work for you.

These tools leverage Artificial Intelligence to help you brainstorm ideas and set up your content structure. That way, you can kickstart your creative juices and begin writing about what you love right away. 

5. Home-Baked Goods Seller

Warehouse-made, store-bought chocolate chip cookies will never compare to a batch made with love in someone’s home. Simple desserts can be easily baked and packaged to sell at local events or around your neighborhood. Use custom labels and watch the word spread about your goods!

You can begin a baked goods business easily by opening a Facebook and Instagram profile. Facebook and Instagram are both excellent platforms to market your goods, show pictures of your previous baked products, and even showcase happy clients.

Build a loyal following slowly, and save on costs by asking clients to drive to your home to pick up their order. Choosing a niche can be helpful here, or baking in a specific style that can’t be found at grocery store bakeries. The overhead can be especially low if you already have most essential baking supplies.

6. Ecommerce Store Owner

Do you create, collect, or curate anything special? Consider starting an ecommerce store and turning your hobby into a full-time job. Whether you need somewhere to sell all that pottery you’ve been making, or an excuse to search for the sports memorabilia you love tracking down, an ecommerce store can make it financially viable for you to pursue your passion.

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Starting an ecommerce store is simple and easy. You can set up a shop using an ecommerce website builder , all of which start at a minimal monthly subscription (some even start at free). Be sure to take good photos of your products and write descriptive product pages .

If you don’t have inventory, you can always own an ecommerce store by using dropshipping . Instead of creating and shipping your products yourself, you’ll instead partner with a dropshipping website and have them mail out the orders directly to your client.

7. House Cleaner

With a low barrier to entry, house cleaning can be a great way to start doing what you love — soon. Consider advertising to homes in your neighborhood and get more bang for your buck by earning a few small businesses as clients as well. They’ll usually bring in a higher paycheck for a similar amount of work.

To become a house cleaner, you should be prepared to invest in cleaning supplies and accessories, or be willing to use your own. If you plan to serve small businesses, you should buy industrial janitorial supplies so you can get work done more effectively.

Need some inspiration? This small business cleaning service grew virtually overnight on Instagram after their content went viral during the pandemic.

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4. create a business plan..

No business plan? No business. Particularly if your small business idea requires investors, you'll need to draft up a business plan to provide an overview of your market positioning, your financial projections, and your unique competitive advantages. You can download HubSpot's free business plan templates for free to get started.

Learn more about choosing the right structure for your business from the Small Business Administration.

6. Create a business bank account.

Once you have a legally formed business and have been issued an Employer Identification Number (EIN), open a bank account specifically for your business. Having a business bank account is essential for keeping your personal and business finances separate which can help you gain an accurate picture of your business’s cash flow and financial health.

Additionally, keeping your personal and business finances separate makes bookkeeping and tax preparation easier.

Many banks offer business checking and savings accounts. Business checking accounts typically do not have a limit on the number of transactions that can take place, and issue a debit card that can be used for making business purchases. However, these checking accounts do not accrue interest.

Business savings accounts typically earn interest over time but have a limited number of transactions that can occur each month. When you’re just starting out, look for a business bank account that does not have a minimum balance requirement so you are not penalized for having low funds as you work to build your business.

7. Determine if your business idea works well from home.

Ask yourself whether your business idea will work well from home. Some businesses simply aren’t suited to be based from home. If you want to run a dog boarding center but live in an apartment without a backyard, you might want to consider a dog walking business instead.

8. Set up an office.

If your business idea is well-suited for being run from home, it’s still important you have a designated workspace. While a home office might not be possible, consider setting aside a corner in your living room or putting a desk in your bedroom for a space that inspires you and creates the conditions for success.

Need a more professional space? If you conduct client-facing work requiring you to be on video calls, no one wants to see your rumpled sheets in the background. Check out local coworking spaces for memberships that earn you access to conference rooms, desk space, and more.

9. Get to work!

You’ve put in the hard work, but I’ve got bad news — it’s only going to get harder. But most entrepreneurs will agree that the payoff of being your own boss, making your own hours, and working on projects that you’re passionate about will pay dividends for the rest of your life.

What are the types of small businesses?

The types of small business structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.

• Sole Proprietorship — The simplest type of business structure is a sole proprietorship, which is also the easiest to start. As a sole proprietor, you are personally responsible for the business's liabilities and profits, and you have complete control over your business. If you are a solopreneur, you are automatically considered a sole proprietor.
• Partnership — A partnership is a business model involving two or more individuals who agree to share the business‘s profits and liabilities. Each partner contributes to the business and shares the risks and rewards. It’s essential to have a partnership agreement that defines each partner's roles and responsibilities to ensure clarity and prevent potential misunderstandings.
• Limited Liability Company (LLC) — An LLC, or limited liability company, is a common option for small businesses because it protects its owners by separating personal assets from the company's liabilities. To form an LLC, the business owner must file the required paperwork with the state.
• Corporation — A corporation is an independent legal entity distinct from its owners. It provides limited liability protection to its shareholders, who are not held personally accountable for the company's debts. Corporations have formal requirements and often raise capital by issuing stocks or shares.

Which business type is best?

The best business type is a limited liability company (LLC). Operating as an LLC means that your personal assets are separate from your business assets. If your business goes bankrupt, your personal holdings won’t be affected. That said, it’s also one of the costlier types, requiring a fee paid to the state.

The easiest business type to start is a sole proprietorship. The main downside is that there’s no differentiation between you and your business.

It's crucial to seek advice from legal or accounting professionals to determine the best business structure based on your unique needs and objectives. Each structure has advantages, legal requirements, tax implications, and flexibility considerations.

How do I create a business idea?

To create a business idea, determine your skill set, work preferences, startup budget, and available resources. It’s important to strike the right balance between what you can feasibly offer and what you can feasibly afford in the short and long term.

We recommend starting with your skill set so that you can easily determine the niche in which you can effectively compete. For instance, if you have ample experience as a writer, you might consider starting a freelance writing business. But if you know you’d prefer to work with clients face-to-face, you might choose to start a ghostwriting business instead. That’s why it’s so important to take your work preferences into account, as well.

After that, take a look at your budget and determine the type of business you can start based on the resources at your disposal. For instance, you might not be able to afford a physical office or location, so a location-based business will likely not be a good fit. In that case, starting an online business is your best option.

What resources or tools can I use to refine and validate my business ideas during the brainstorming process?

Online market research tools like Google Trends, Keyword Planner, and SEMrush can provide insights into market demand, competition, and keyword trends related to your business niche. Industry reports and market analyses from reputable sources such as IBISWorld, Gartner, Statista, and industry-specific publications can offer valuable data and trends to inform your decision-making. Ensure you know the industry risk before embarking on your small business venture.

→ Download Now: Market Research Kit [Free Download]

Additionally, joining entrepreneurial communities, forums, and social media groups can provide opportunities to seek feedback, network with like-minded people, and gain insights from experienced entrepreneurs. Finally, consider conducting surveys or interviews with potential customers to gather feedback and validate your business concept before investing significant time and resources.

What are some of the most successful small businesses?

Every small business has the potential to be successful and profitable, provided it’s backed by a strong product-market fit and a robust business plan . These two elements are essential. Maybe postnatal services are one of the most successful small businesses to launch, but if you live in an area with declining population or a large elderly population, then that small business idea won’t yield a high return on investment.

Think carefully about the market where you’re launching your business, and you’ll be more than likely to see lasting success.

What are the top growing small businesses?

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How to Research a Business Idea

Last Updated: February 28, 2020

wikiHow is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, 12 people, some anonymous, worked to edit and improve it over time. This article has been viewed 21,805 times.

The economic climate for new businesses is never certain, but doing your research can drastically improve your chances of success. By thoroughly investigating every aspect of your business idea, you will know what to expect and how to execute your strategy if you choose to move forward.

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Ready Entrepreneur

Your wantrepreneur to entrepreneur, how to research your business idea.

by Case Lane

When you are first starting as an entrepreneur and manage to put away 15 minutes a day to work on your business, you will likely start by researching more about your business idea.

The purpose of your research should be to find sufficient information to move on to the next step in launching your business. But many aspiring entrepreneurs get caught in analysis paralysis, endlessly researching similar products or services in an effort to understand the competition. But there are more productive ways to spend your time.

When researching:

Investigate your Business Idea

Once you have a business idea, you have to find the information to fill in the gaps in your knowledge.

Most business ideas come from the entrepreneur’s own questions around their likes, dislikes, hobbies, experiences, work and education. Some people have also asked others to contribute to an idea. The origin of the idea is the foundation for going forward and doing your research.

Research Leads to Action

All research should be leading to action.  The research provides the details about how you can bring your product or service to your community, then you can begin to take the action steps necessary to make it happen.

Research helps you realize what you need to do.  The information can help you decide how to determine what you like or do not like that is already available, to identify best practices and good ideas, and to put together an action plan for yourself.

You want to see what’s going on in the marketplace – if anything – related to your product or service.  And this exercise exists even if you have an idea of a product or service that does not exist in the marketplace. 

Look at the context and functions for your idea

Looking at the broader market will help you determine the context for your product or service.

For example, there is a saying that if Henry Ford had listened to his customers, they would have said they want a faster horse.  The statement is supposed to be profound because Ford of course brought the car to the masses.  The masses could not have envisioned a car, they could only envision a faster horse. 

But if you look at the context of this example, you see a different story. Consider the functional not literal product Ford delivered.

The customers were saying they want to get around faster. And Ford responded by giving them away to get around faster than a horse. He even emulated the infrastructure needed to manage his new product.

The car needs care and feeding, just like a horse, but this time with hay not gasoline. The product needs to be stored, not in a stable but in a garage. And it must be maintained, not with horse shoes but with tires.  Ford actually gave people the functionality of a faster horse – that’s just not what we ended up calling it.

So when you are looking at your product or service, you are looking at the context for how you will introduce the product, and the functions it will perform.

Even if you have invented a new product or service, you still need to research the other products or services that try to address the same or a similar problem.

After all the online research, it’s important to remember there is a world outside where potential customers could be demonstrating the literal or functional use of your product or service.

If you look and touch the real world, you might learn more about what you intend to offer.  Go out to see your product or service in live action.  You can go to a store and see people shop or ask questions about the product, or maybe just walk down the street to see if your idea evolves based on your real world interactions.

Even if your product is completely digital, consider if the problem you are trying to solve also plays out in the physical world.

Limit Your Research Time

When starting research, Now I mentioned earlier that you do not need to do endless research.  You can decide how much time you really want to spend.  Part of the decision rests on how your life is currently organized.  If you are only taking 15 mins a day to research because you are slowly working up to your available time then it make take you several weeks to put together sufficient information. 

Generally if you have one or two hours a day, start with one week, and see how much information you can gather. If you still feel you need more information, go one more week. But do not keep procrastinating or delaying the work.

You are much better off getting started than just trying to keep researching forever.

You will know you are finished when you have enough information to move forward. For example, if you are starting a podcast and you’ve researched equipment and learned how you can do the recording, and where to host the completed file, at that point it’s time to create content.

You don’t need to keep looking at microphones.  You can go with the most recommended one and if you don’t like it you can upgrade later. The same is true for the hosting platform or recording software. You can always change your mind after you get started and receive initial feedback on how the process is working.

In general, you are doing research to give you enough information to move your business along, not to have an excuse to delay starting your business.

Summary for How to Research Your Business Idea

• After you have selected your business idea, research is used to determine what you need to do next to take action on getting your business started
• Think about the functional use for your product or service and the context that people will use it, not just the literal use of similar products or services
• Go out into the real world with your research, not just online. Look up how similar products and services are presented in the marketplace
• Keep going until you have enough information to move on to the next step of your plan.  A week of 1-2 hour days is a good start. Make sure you stop and move on.  You can always change your mind after you have started and tested the results of your decision.
• It’s better to start the business with a little research, than to not start at all while you continue to spend time endlessly looking things up

The key to researching your business idea is to get enough information to move you along to the next step.

The idea as always is to just get started.

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 Category: Business Ideas , New Business Tips , PREPARATION , Start a Business , Strategies for Aspiring Entrepreneurs , Strategies for New Entrepreneurs , Tips for Aspiring Entrepreneurs , Tips for New Entrepreneurs , Tips for Wantrepreneurs

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Building the Next Big Thing: A Guide to Business Idea Development

Business idea development for new venture concepts is a mixture of art and science. There are playbooks to follow that ensure ideas are validated objectively to ensure financial and opportunity cost risks are minimized.

By Brendan Fitzgerald

Brendan has raised more than $700 million and built strategic relationships with numerous Fortune 500 companies to help grow businesses.

PREVIOUSLY AT

How many times have you heard of successful new business ideas and said to yourself, “Why didn’t I think of that”? Personally, I’ve started seven different businesses, but the ones that never happened are some of my most memorable ones. For example, I often think about Topgolf, the wildly popular golf driving range/sports bar venues that are popping up all over the US. I’ve been playing golf since I was eight years old and socializing in bars since I was 18. Yet never once did it cross my mind to combine these activities into a business. How did I miss that?

My goal with this article is to help you find the next big idea using business and creative frameworks that help you identify interesting concepts and create new business ideas. Hopefully, this will lead to other people kicking themselves as they follow your business success.

There are four steps to identifying a good business opportunity. The four steps are:

• Find an unmet market need.
• Create a differentiated solution that meets customers’ needs.
• Play devil’s advocate.
• Get market feedback.

1. Find an Unmet Market Need

At the heart of all business opportunities are customers. In order to have customers spend their money on a product, it has to provide better value to them than existing solutions. Thus, the first step in finding a business opportunity is to identify something that customers want that’s not readily available, or affordable, to them.

Your business idea doesn’t have to be some huge revolutionary concept. In fact, those “big ideas” typically take so much money to bring to market, they’re just not feasible for most entrepreneurs. For example, Meg Whitman and Jeff Katzenberg raised $1.75 billion of pre-revenue capital for their mobile video platform Quibi. Not many people could do that.

The best ideas are often incremental improvements over existing products where the market and distribution channels are well established, the product development risks are low, and customers can readily understand the product’s benefits. One of my most successful startups was a real estate syndication company that was the 50th company to enter an established market for providing tax-advantaged real estate investments to individual investors. We quickly became a major player in the market by simply focusing on giving customers a level of service they weren’t getting from other vendors.

So, where do you find unmet market needs? There are two places to look:

• Your work environment
• Your personal life

The beauty of looking in your work environment is that if your existing employer has customers, it also very likely has complaints related to customer needs that aren’t being fulfilled. In many cases, if customers aren’t satisfied, the solution they want isn’t readily available elsewhere, or they’d just go to another vendor. If you can find a solution that solves the customers’ problem, then you may well be on to an interesting business opportunity.

I have a friend who was working for a big company that builds satellite ground stations. His employer was in the equipment manufacturing business, selling complex multi-million dollar communication systems. My friend kept hearing smaller prospective customers say that they couldn’t afford their own system but wanted to rent capacity on someone else’s ground station. His employer was swamped trying to build enough ground stations to meet the demand of its big customers. So my friend resigned and established a data services company that owned one ground station and sold data access to a number of these smaller customers.

Away from work, I see potential business opportunities every time I need or want something that I can’t readily obtain at what I view as a fair price. I also listen carefully when my friends and family express their frustration over not being able to find a solution to issues they’re dealing with or their dissatisfaction with something they bought.

2. Come Up with a Differentiated Solution That Meets Customers’ Needs

Finding an unmet market need is always intriguing, but there’s no business opportunity unless you can figure out a way to meet the need. Differentiated solutions can come from your own creativity, your own expertise, or your knowledge of where to go to find the needed creativity/expertise. I’m living proof that you don’t need to have some special “gift” to come up with differentiated solutions. You just need to put your thinking cap on and/or socialize the unmet market need with others who might have specific knowledge that could help.

To demonstrate the concept of solving unmet needs, I have prepared some business idea examples from ventures that I set up myself. Each instance shows the process that I went through to ideate around the situation.

Company	Unmet Market Need	Differentiated Solution	Source
1	Low-cost data communications service with ubiquitous geographic coverage (in the pre-cellular era)	High-frequency radio network that replaced existing (and expensive) satellite solutions with affordable digital ham radios	At the time, I worked for a company that had developed a high-frequency radio network for the government and was able to convert it for civilian use.
2	Accurate and reliable location tracking in campus environments (in the pre-GPS era)	PC-based system that used terrestrial radio signals to triangulate location	A friend’s company had developed a patented system for tracking pallets in large warehouses. My company adapted this system for theme parks, malls, and college campuses.
3	Investment banking services for SMBs in the underserved region where I live	I started a boutique investment bank to provide services to SMBs in the region.	I surrounded myself with experienced staff with deep industry knowledge.
4	Tax-advantaged investment opportunities with excellent investor relations services	I started a real estate investment company that focused on superior investor services.	With personal experiences on both sides of the table, I could quickly build a network of potential clients and staff.
5	Individual temperature control for employees in office buildings	Low-cost, easy-to-install, microzone HVAC system that gives each employee a personal thermostat	Working with partners, we quickly validated whether a solution was feasible, and more importantly, patentable.
6	Low-risk investments with good returns during a very low interest rate environment	Securities that were backed by cash flows from solar and wind farms	Marrying the "hunt for yield" dilemma with an increasing macrotrend of investment in renewables
7	Simple and affordable dynamic pricing solutions for SMBs	A machine learning-enabled software platform that adjusts prices based on market conditions.	My adult son and I had both encountered the problem, and by comparing our insights, we put the best parts together to form a solution.

All too often, I hear stories of entrepreneurs who had a solution and were looking for a problem, rather than starting with an unmet market need, e.g., the infamous “build it and they will come” approach. Start with the unmet market need.

3. Play Devil’s Advocate

I’ve started seven businesses but have identified many more unmet market needs. How did I make the decision to start the ones that I did?

It’s easy to eliminate unmet market needs for which you can’t come up with a differentiated solution. However, it takes time, research , and self-awareness to weed out most of the remaining ideas. Here’s the process I typically go through.

As devil’s advocate implies, I try to shoot holes in potential business opportunities that I come up with. The framework that I use for performing due diligence on potential business opportunities is based on the four key elements of any business: Product , People , Market, and Money . The below table lists some of the key issues you should perform due diligence on in each category.

I usually start by looking for competitive products that are similar to the differentiated solution that I’ve come up with. Finding a similar product isn’t necessarily the kiss of death, because the market opportunity may be big enough to support multiple players. However, if you find a similar product from a company that’s been struggling for years, that’s probably a good indicator that your solution might not be as good as you hope—unless your product better addresses the need that is causing the competitor to struggle.

The other issue I often find when looking at competitors is that someone else has an even better product than what I’ve come up with, and thus, there really isn’t an unmet market need. When this happens, I typically just tip my hat and move on.

The next thing I usually do is look at the overall economics of the opportunity . What is it going to cost me to develop my solution into a real product that I can sell? What will it cost to produce in volume? What is a reasonable sales price? How many can I realistically sell?

If my back of the envelope financial model doesn’t indicate a real windfall, I usually walk away. I say a real windfall because inevitably, things always look worse, not better, when you do a really detailed financial model .

If I still think I have a good business opportunity after I’ve worked my way through all of the questions in the above table, and any other questions that come up as I’m doing due diligence, I share the idea with several colleagues, friends, or family members and ask for their honest feedback . In addition to getting their input on the business idea development , I also solicit their support for the new venture. If your colleagues, friends, and family aren’t supportive (e.g., lending expertise, financial backing) of the undertaking, that may well be a showstopper.

4. Get Market Feedback

You’ve made it to the final step, and you still think you have a good idea. Now, it’s time to see if knowledgeable people in the market have the same view of the concept.

You need to solicit input from as many prospective customers and distribution channel partners as you can to find out if they need and would pay the price you envision for the concept. It’s rare that anyone makes affirmative commitments at this point, but people will say no. Realistically, the best you can usually hope for is that some prospective customers say they’ll try your product when it’s ready, and the distribution channel partners indicate a willingness to carry it if it works out well for the early adopters.

Additionally, it’s often worth the money to hire former industry insiders who are now consultants to give you feedback on the idea. They can provide invaluable contacts and insights, not to mention fill key roles on your team when you’re ready to start hiring.

Sometimes, it makes sense to engage third parties to help solicit market feedback, but I’ve always found it invaluable to conduct at least some interviews myself so I can hear the feedback directly. This is especially true if third parties report rosy feedback. I’ve learned the hard way that many people don’t want to be negative about other people’s ideas. Remember, the goal here is not to delude yourself that you have a great business opportunity if you really don’t. The goal is to avoid spending time and money on business idea development that’s not likely to pan out.

If your business opportunity requires that you create a new distribution channel, e.g., selling directly from a newly launched website, you need to think hard about how much time and money it will take to create the brand and product awareness required to generate actual sales.

A final scenario to consider entails a business idea that creates a whole new product category, i.e., a product that’s unlike anything else on the market. Think of the personal computer when it first came out.

These types of opportunities create real challenges when trying to get market feedback because potential customers often can’t even correctly envision the product you’re describing. Think of trying to explain to someone in the 1970s that your new product is kind of like a typewriter combined with a TV screen. This is just one of many reasons that “breakthrough” business ideas are the riskiest and take the most money to bring to fruition.

Business Idea Development Is About Finding the Signals to Continue

If your market feedback is positive, it’s time to make the call. Are you really going to put this business idea plan into fruition? If your answer is yes, and your family is supportive, start drafting your resignation letter and read my next article on the details of forming a new company .

Further Reading on the Toptal Blog:

• From Startup to Success: Mastering Business Controls for Growth

Understanding the basics

How do you develop a business idea.

The initial stages of formulating a business idea comprise four elements: finding an unmet market need, creating a differentiated solution that meets customers’ needs, poking holes in the concept, and soliciting market feedback.

• BusinessPlan
• BusinessModel
• BusinessResearch

Brendan Fitzgerald

Indialantic, FL, United States

Member since February 14, 2020

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Home » 500+ Business Research Topics

500+ Business Research Topics

Business research is an essential component of any successful organization, as it allows companies to make informed decisions based on data-driven insights. Whether it’s market research to identify new opportunities, or analyzing internal processes to improve efficiency, there are a vast array of business research topics that companies can explore. With the constantly evolving business landscape, it’s critical for organizations to stay up-to-date with the latest research trends and best practices to remain competitive. In this post, we’ll explore some of the most compelling business research topics that are currently being studied, providing insights and actionable recommendations for businesses of all sizes.

Business Research Topics

Business Research Topics are as follows:

• The impact of social media on consumer behavior
• Strategies for enhancing customer satisfaction in the service industry
• The effectiveness of mobile marketing campaigns
• Exploring the factors influencing employee turnover
• The role of leadership in organizational culture
• Investigating the relationship between corporate social responsibility and financial performance
• Assessing the impact of employee engagement on organizational performance
• The challenges and opportunities of global supply chain management
• Analyzing the effectiveness of e-commerce platforms
• Investigating the impact of organizational culture on employee motivation
• The role of corporate governance in ensuring ethical business practices
• Examining the impact of digital marketing on brand equity
• Strategies for managing diversity and inclusion in the workplace
• Exploring the effects of employee empowerment on job satisfaction
• The role of innovation in business growth
• Analyzing the impact of mergers and acquisitions on company performance
• Investigating the impact of workplace design on employee productivity
• The challenges and opportunities of international business expansion
• Strategies for managing talent in the knowledge economy
• The role of artificial intelligence in transforming business operations
• Examining the impact of customer loyalty programs on retention and revenue
• Investigating the relationship between corporate social responsibility and brand reputation
• The role of emotional intelligence in effective leadership
• The impact of digital transformation on small and medium-sized enterprises
• Analyzing the effectiveness of green marketing strategies
• The role of entrepreneurship in economic development
• Investigating the impact of employee training and development on organizational performance
• The challenges and opportunities of omnichannel retailing
• Examining the impact of organizational change on employee morale and productivity
• The role of corporate social responsibility in attracting and retaining millennial talent
• Analyzing the impact of employee motivation on organizational culture
• Investigating the impact of workplace diversity on team performance
• The challenges and opportunities of blockchain technology in business operations
• Strategies for managing cross-functional teams
• The role of big data analytics in business decision-making
• Examining the impact of corporate social responsibility on customer loyalty
• Investigating the relationship between corporate social responsibility and employee engagement
• The impact of social media marketing on customer engagement and brand loyalty.
• The effectiveness of AI in improving customer service and satisfaction.
• The role of entrepreneurship in economic development and job creation.
• The impact of the gig economy on the labor market.
• The effects of corporate social responsibility on company profitability.
• The role of data analytics in predicting consumer behavior and market trends.
• The effects of globalization on the competitiveness of small businesses.
• The impact of e-commerce on traditional brick-and-mortar retail.
• The role of emotional intelligence in leadership and team management.
• The effects of workplace diversity on employee productivity and satisfaction.
• The role of corporate culture in employee retention and satisfaction.
• The impact of employee training and development on company performance.
• The effectiveness of performance-based pay structures on employee motivation.
• The impact of sustainability practices on company reputation and profitability.
• The effects of artificial intelligence on job displacement and the future of work.
• The role of innovation in the growth and success of small businesses.
• The impact of government regulations on business operations and profitability.
• The effects of organizational structure on company performance and efficiency.
• The role of emotional labor in service industries.
• The impact of employee empowerment on job satisfaction and retention.
• The effects of workplace flexibility on employee productivity and well-being.
• The role of emotional intelligence in negotiation and conflict resolution.
• The impact of branding on consumer behavior and purchase decisions.
• The effects of customer experience on brand loyalty and advocacy.
• The role of storytelling in marketing and advertising.
• The impact of consumer psychology on pricing strategies and sales.
• The effects of influencer marketing on consumer behavior and brand loyalty.
• The role of trust in online transactions and e-commerce.
• The impact of product design on consumer perception and purchasing decisions.
• The effects of customer satisfaction on company profitability and growth.
• The role of social entrepreneurship in addressing societal problems and creating value.
• The impact of corporate governance on company performance and stakeholder relations.
• The effects of workplace harassment on employee well-being and company culture.
• The role of strategic planning in the success of small businesses.
• The impact of technology on supply chain management and logistics.
• The effects of customer segmentation on marketing strategies and sales.
• The role of corporate philanthropy in building brand reputation and loyalty.
• The impact of intellectual property protection on innovation and creativity.
• The effects of trade policies on international business operations and profitability.
• The role of strategic partnerships in business growth and expansion.
• The impact of digital transformation on organizational structure and operations.
• The effects of leadership styles on employee motivation and performance.
• The role of corporate social activism in shaping public opinion and brand reputation.
• The impact of mergers and acquisitions on company performance and stakeholder value.
• The effects of workplace automation on job displacement and re-skilling.
• The role of cross-cultural communication in international business operations.
• The impact of workplace stress on employee health and productivity.
• The effects of customer reviews and ratings on online sales and reputation.
• The role of competitive intelligence in market research and strategy development.
• The impact of brand identity on consumer trust and loyalty.
• The impact of organizational structure on innovation and creativity
• Analyzing the effectiveness of virtual teams in global organizations
• The role of corporate social responsibility in crisis management
• The challenges and opportunities of online marketplaces
• Strategies for managing cultural diversity in multinational corporations
• The impact of employer branding on employee retention
• Investigating the impact of corporate social responsibility on investor behavior
• The role of technology in enhancing customer experience
• Analyzing the impact of social responsibility initiatives on customer satisfaction
• Investigating the impact of supply chain disruptions on business performance
• The role of business ethics in organizational decision-making
• The challenges and opportunities of artificial intelligence in customer service
• Strategies for managing employee burnout and stress in the workplace.
• Impact of social media on consumer behavior and its implications for businesses.
• The impact of corporate social responsibility on company performance.
• An analysis of the relationship between employee satisfaction and customer loyalty.
• The effect of advertising on consumer behavior.
• A study on the effectiveness of social media marketing in building brand image.
• The impact of technological innovations on business strategy and operations.
• The relationship between leadership style and employee motivation.
• A study of the effects of corporate culture on employee engagement.
• An analysis of the factors influencing consumer buying behavior.
• The effectiveness of training and development programs in enhancing employee performance.
• The impact of global economic factors on business decision-making.
• The role of organizational communication in achieving business goals.
• The relationship between customer satisfaction and business success.
• A study of the challenges and opportunities in international business.
• The effectiveness of supply chain management in improving business performance.
• An analysis of the factors influencing customer loyalty in the hospitality industry.
• The impact of employee turnover on organizational performance.
• A study of the impact of corporate governance on company performance.
• The role of innovation in business growth and success.
• An analysis of the relationship between marketing and sales performance.
• The effect of organizational structure on employee behavior.
• A study of the impact of cultural differences on business negotiations.
• The effectiveness of pricing strategies in increasing sales revenue.
• The impact of customer service on customer loyalty.
• A study of the role of human resource management in business success.
• The impact of e-commerce on traditional brick-and-mortar businesses.
• An analysis of the relationship between employee empowerment and job satisfaction.
• The effectiveness of customer relationship management in building brand loyalty.
• The role of business ethics in corporate decision-making.
• A study of the impact of digital marketing on consumer behavior.
• The effect of organizational culture on employee turnover.
• An analysis of the factors influencing employee engagement in the workplace.
• The impact of social media on business communication and marketing.
• A study of the relationship between customer service and customer loyalty in the airline industry.
• The role of diversity and inclusion in business success.
• The effectiveness of performance management systems in improving employee performance.
• The impact of corporate social responsibility on employee engagement.
• A study of the factors influencing business expansion into new markets.
• The role of brand identity in customer loyalty and retention.
• The effectiveness of change management strategies in organizational change.
• The impact of organizational structure on organizational performance.
• A study of the impact of technology on the future of work.
• The relationship between innovation and competitive advantage in the marketplace.
• The effect of employee training on organizational performance.
• An analysis of the impact of online reviews on consumer behavior.
• The role of leadership in shaping organizational culture.
• The effectiveness of talent management strategies in retaining top talent.
• The impact of globalization on small and medium-sized enterprises.
• A study of the relationship between corporate social responsibility and brand reputation.
• The effectiveness of employee retention strategies in reducing turnover rates.
• The role of emotional intelligence in leadership and employee engagement.
• The impact of digital marketing on customer behavior
• The role of organizational culture in employee engagement and retention
• The effects of employee training and development on organizational performance
• The relationship between corporate social responsibility and financial performance
• The impact of globalization on business strategy
• The importance of supply chain management in achieving competitive advantage
• The role of innovation in business growth and sustainability
• The impact of e-commerce on traditional retail businesses
• The role of leadership in managing change in organizations
• The effects of workplace diversity on organizational performance
• The impact of social media on brand image and reputation
• The relationship between employee motivation and productivity
• The role of organizational structure in promoting innovation
• The effects of customer service on customer loyalty
• The impact of globalization on small businesses
• The role of corporate governance in preventing unethical behavior
• The effects of technology on job design and work organization
• The relationship between employee satisfaction and turnover
• The impact of mergers and acquisitions on organizational culture
• The effects of employee benefits on job satisfaction
• The impact of cultural differences on international business negotiations
• The role of strategic planning in organizational success
• The effects of organizational change on employee stress and burnout
• The impact of business ethics on customer trust and loyalty
• The role of human resource management in achieving competitive advantage
• The effects of outsourcing on organizational performance
• The impact of diversity and inclusion on team performance
• The role of corporate social responsibility in brand differentiation
• The effects of leadership style on organizational culture
• The Impact of Digital Marketing on Brand Equity: A Study of E-commerce Businesses
• Investigating the Relationship between Employee Engagement and Organizational Performance
• Analyzing the Effects of Corporate Social Responsibility on Customer Loyalty and Firm Performance
• An Empirical Study of the Factors Affecting Entrepreneurial Success in the Technology Sector
• The Influence of Organizational Culture on Employee Motivation and Job Satisfaction: A Case Study of a Service Industry
• Investigating the Impact of Organizational Change on Employee Resistance: A Comparative Study of Two Organizations
• An Exploration of the Impact of Artificial Intelligence on Supply Chain Management
• Examining the Relationship between Leadership Styles and Employee Creativity in Innovative Organizations
• Investigating the Effectiveness of Performance Appraisal Systems in Improving Employee Performance
• Analyzing the Role of Emotional Intelligence in Leadership Effectiveness: A Study of Senior Managers
• The Impact of Transformational Leadership on Employee Motivation and Job Satisfaction in the Healthcare Sector
• Evaluating the Effectiveness of Talent Management Strategies in Enhancing Organizational Performance
• A Study of the Effects of Customer Relationship Management on Customer Retention and Loyalty
• Investigating the Impact of Corporate Governance on Firm Performance: Evidence from Emerging Markets
• The Relationship between Intellectual Capital and Firm Performance: A Case Study of Technology Firms
• Analyzing the Effectiveness of Diversity Management in Improving Organizational Performance
• The Impact of Internationalization on the Performance of Small and Medium-sized Enterprises: A Comparative Study of Developed and Developing Countries
• Examining the Relationship between Corporate Social Responsibility and Financial Performance: A Study of Listed Firms
• Investigating the Influence of Entrepreneurial Orientation on Firm Performance in Emerging Markets
• Analyzing the Impact of E-commerce on Traditional Retail Business Models: A Study of Brick-and-Mortar Stores
• The Effect of Corporate Reputation on Customer Loyalty and Firm Performance: A Study of the Banking Sector
• Investigating the Factors Affecting Consumer Adoption of Mobile Payment Systems
• The Role of Corporate Social Responsibility in Attracting and Retaining Millennial Employees
• Analyzing the Impact of Social Media Marketing on Brand Awareness and Consumer Purchase Intentions
• A Study of the Effects of Employee Training and Development on Job Performance
• Investigating the Relationship between Corporate Culture and Employee Turnover: A Study of Multinational Companies
• The Impact of Business Process Reengineering on Organizational Performance: A Study of Service Industries
• An Empirical Study of the Factors Affecting Internationalization Strategies of Small and Medium-sized Enterprises
• The Effect of Strategic Human Resource Management on Firm Performance: A Study of Manufacturing Firms
• Investigating the Influence of Leadership on Organizational Culture: A Comparative Study of Two Organizations
• The Impact of Technology Adoption on Organizational Productivity: A Study of the Healthcare Sector
• Analyzing the Effects of Brand Personality on Consumer Purchase Intentions: A Study of Luxury Brands
• The Relationship between Corporate Social Responsibility and Customer Perceptions of Product Quality: A Study of the Food and Beverage Industry
• Investigating the Effectiveness of Performance Management Systems in Improving Employee Performance: A Study of a Public Sector Organization
• The Impact of Business Ethics on Firm Performance: A Study of the Banking Industry
• Examining the Relationship between Employee Engagement and Customer Satisfaction in the Service Industry
• Investigating the Influence of Entrepreneurial Networking on Firm Performance: A Study of Small and Medium-sized Enterprises
• The Effect of Corporate Social Responsibility on Employee Retention: A Study of High-tech Firms
• The impact of workplace communication on employee engagement
• The role of customer feedback in improving service quality
• The effects of employee empowerment on job satisfaction
• The impact of innovation on customer satisfaction
• The role of knowledge management in organizational learning
• The effects of product innovation on market share
• The impact of business location on customer behavior
• The role of financial management in business success
• The effects of corporate social responsibility on employee engagement
• The impact of cultural intelligence on cross-cultural communication
• The role of social media in crisis management
• The effects of corporate branding on customer loyalty
• The impact of globalization on consumer behavior
• The role of emotional intelligence in leadership effectiveness
• The effects of employee involvement in decision-making on job satisfaction
• The impact of business strategy on market share
• The role of corporate culture in promoting ethical behavior
• The effects of corporate social responsibility on investor behavior
• The impact of sustainability on brand image and reputation
• The role of corporate social responsibility in reducing carbon emissions.
• The effectiveness of loyalty programs on customer retention
• The benefits of remote work for employee productivity
• The impact of environmental sustainability on consumer purchasing decisions
• The role of brand identity in consumer loyalty
• The relationship between employee satisfaction and customer satisfaction
• The impact of e-commerce on traditional brick-and-mortar stores
• The effectiveness of online advertising on consumer behavior
• The impact of leadership styles on employee motivation
• The role of corporate social responsibility in brand perception
• The impact of workplace diversity on organizational performance
• The effectiveness of gamification in employee training programs
• The impact of pricing strategies on consumer behavior
• The effectiveness of mobile marketing on consumer engagement
• The impact of emotional intelligence on leadership effectiveness
• The role of customer service in consumer loyalty
• The impact of technology on supply chain management
• The effectiveness of employee training programs on job performance
• The impact of culture on consumer behavior
• The effectiveness of performance appraisal systems on employee motivation
• The impact of social responsibility on organizational performance
• The role of innovation in business success
• The impact of ethical leadership on organizational culture
• The effectiveness of cross-functional teams in project management
• The impact of government regulations on business operations
• The role of strategic planning in business growth
• The impact of emotional intelligence on team dynamics
• The effectiveness of supply chain management on customer satisfaction
• The impact of workplace culture on employee satisfaction
• The role of employee engagement in organizational success
• The impact of globalization on organizational culture
• The effectiveness of virtual teams in project management
• The impact of employee turnover on organizational performance
• The role of corporate social responsibility in talent acquisition
• The impact of technology on employee training and development
• The effectiveness of knowledge management on organizational learning
• The impact of organizational structure on employee motivation
• The role of innovation in organizational change
• The impact of cultural intelligence on global business operations
• The effectiveness of marketing strategies on brand perception
• The impact of change management on organizational culture
• The role of leadership in organizational transformation
• The impact of employee empowerment on job satisfaction
• The effectiveness of project management methodologies on project success
• The impact of workplace communication on team performance
• The role of emotional intelligence in conflict resolution
• The impact of employee motivation on job performance
• The effectiveness of diversity and inclusion initiatives on organizational performance.
• The impact of social media on consumer behavior and buying decisions
• The role of diversity and inclusion in corporate culture and its effects on employee retention and productivity
• The effectiveness of remote work policies on job satisfaction and work-life balance
• The impact of customer experience on brand loyalty and revenue growth
• The effects of environmental sustainability practices on corporate reputation and financial performance
• The role of corporate social responsibility in consumer purchasing decisions
• The effectiveness of leadership styles on team performance and productivity
• The effects of employee motivation on job performance and turnover
• The impact of technology on supply chain management and logistics efficiency
• The role of emotional intelligence in effective leadership and team dynamics
• The impact of artificial intelligence and automation on job displacement and workforce trends
• The effects of brand image on consumer perception and purchasing decisions
• The role of corporate culture in promoting innovation and creativity
• The impact of e-commerce on traditional brick-and-mortar retail businesses
• The effects of corporate governance on financial reporting and transparency
• The effectiveness of performance-based compensation on employee motivation and productivity
• The impact of online reviews and ratings on consumer trust and brand reputation
• The effects of workplace diversity on innovation and creativity
• The impact of mobile technology on marketing strategies and consumer behavior
• The role of emotional intelligence in customer service and satisfaction
• The effects of corporate reputation on financial performance and stakeholder trust
• The impact of artificial intelligence on customer service and support
• The role of organizational culture in promoting ethical behavior and decision-making
• The effects of corporate social responsibility on employee engagement and satisfaction
• The impact of employee turnover on organizational performance and profitability
• The role of customer satisfaction in promoting brand loyalty and advocacy
• The effects of workplace flexibility on employee morale and productivity
• The impact of employee wellness programs on absenteeism and healthcare costs
• The role of data analytics in business decision-making and strategy formulation
• The effects of brand personality on consumer behavior and perception
• The impact of social media marketing on brand awareness and customer engagement
• The role of organizational justice in promoting employee satisfaction and retention
• The effects of corporate branding on employee motivation and loyalty
• The impact of online advertising on consumer behavior and purchasing decisions
• The role of corporate entrepreneurship in promoting innovation and growth
• The effects of cultural intelligence on cross-cultural communication and business success
• The impact of workplace diversity on customer satisfaction and loyalty
• The role of ethical leadership in promoting employee trust and commitment
• The effects of job stress on employee health and well-being
• The impact of supply chain disruptions on business operations and financial performance
• The role of organizational learning in promoting continuous improvement and innovation
• The effects of employee engagement on customer satisfaction and loyalty
• The impact of brand extensions on brand equity and consumer behavior
• The role of strategic alliances in promoting business growth and competitiveness
• The effects of corporate transparency on stakeholder trust and loyalty
• The impact of digital transformation on business models and competitiveness
• The role of business ethics in promoting corporate social responsibility and sustainability
• The effects of employee empowerment on job satisfaction and organizational performance.
• The role of corporate governance in mitigating unethical behavior in multinational corporations.
• The effects of cultural diversity on team performance in multinational corporations.
• The impact of corporate social responsibility on consumer loyalty and brand reputation.
• The relationship between organizational culture and employee engagement in service industries.
• The impact of globalization on the competitiveness of small and medium enterprises (SMEs).
• The effectiveness of performance-based pay systems on employee motivation and productivity.
• The relationship between innovation and corporate performance in the pharmaceutical industry.
• The impact of digital marketing on the traditional marketing mix.
• The role of emotional intelligence in leadership effectiveness in cross-cultural teams.
• The relationship between corporate social responsibility and financial performance in the banking sector.
• The impact of diversity management on employee satisfaction and retention in multinational corporations.
• The relationship between leadership style and organizational culture in family-owned businesses.
• The impact of e-commerce on supply chain management.
• The effectiveness of training and development programs on employee performance in the retail sector.
• The impact of global economic trends on strategic decision-making in multinational corporations.
• The relationship between ethical leadership and employee job satisfaction in the healthcare industry.
• The impact of employee empowerment on organizational performance in the manufacturing sector.
• The relationship between corporate social responsibility and employee well-being in the hospitality industry.
• The impact of artificial intelligence on customer service in the banking industry.
• The relationship between emotional intelligence and employee creativity in the technology industry.
• The impact of big data analytics on customer relationship management in the telecommunications industry.
• The relationship between organizational culture and innovation in the automotive industry.
• The impact of internationalization on the performance of SMEs in emerging markets.
• The effectiveness of performance appraisal systems on employee motivation and retention in the public sector.
• The relationship between diversity management and innovation in the pharmaceutical industry.
• The impact of social entrepreneurship on economic development in developing countries.
• The relationship between transformational leadership and organizational change in the energy sector.
• The impact of online customer reviews on brand reputation in the hospitality industry.
• The effectiveness of leadership development programs on employee engagement in the finance industry.
• The relationship between corporate social responsibility and employee turnover in the retail sector.
• The impact of artificial intelligence on the recruitment and selection process in the technology industry.
• The relationship between organizational culture and employee creativity in the fashion industry.
• The impact of digital transformation on business models in the insurance industry.
• The relationship between employee engagement and customer satisfaction in the service industry.
• The impact of mergers and acquisitions on organizational culture and employee morale.
• The effectiveness of knowledge management systems on organizational performance in the consulting industry.
• The impact of social media marketing on brand loyalty in the food and beverage industry.
• The relationship between emotional intelligence and customer satisfaction in the airline industry.
• The impact of blockchain technology on supply chain management in the logistics industry.
• The relationship between corporate social responsibility and employee engagement in the technology industry.
• The impact of digitalization on talent management practices in the hospitality industry.
• The effectiveness of reward and recognition programs on employee motivation in the manufacturing industry.
• The impact of industry 4.0 on organizational structure and culture in the aerospace industry.
• The relationship between leadership style and team performance in the construction industry.
• The impact of artificial intelligence on financial forecasting and decision-making in the banking sector.
• The relationship between corporate social responsibility and customer loyalty in the automotive industry.
• The impact of virtual teams on employee communication and collaboration in the pharmaceutical industry.
• The impact of remote work on employee productivity and job satisfaction
• The effects of social media marketing on customer engagement and brand loyalty
• The role of artificial intelligence in streamlining supply chain management
• The effectiveness of employee training and development programs on organizational performance
• The impact of diversity and inclusion initiatives on organizational culture and employee satisfaction
• The role of corporate social responsibility in enhancing brand reputation and customer loyalty
• The effects of e-commerce on small businesses and local economies
• The impact of big data analytics on marketing strategies and customer insights
• The effects of employee empowerment on organizational innovation and performance
• The impact of globalization on the hospitality industry
• The effects of corporate governance on organizational performance and financial outcomes
• The role of customer satisfaction in driving business growth and profitability
• The impact of artificial intelligence on financial forecasting and risk management
• The effects of corporate culture on employee engagement and retention
• The role of green marketing in promoting environmental sustainability and brand reputation
• The impact of digital transformation on the retail industry
• The effects of employee motivation on job performance and organizational productivity
• The role of customer experience in enhancing brand loyalty and advocacy
• The impact of international trade agreements on global business practices
• The effects of artificial intelligence on customer service and support
• The role of organizational communication in facilitating teamwork and collaboration
• The impact of corporate social responsibility on employee motivation and retention
• The effects of global economic instability on business decision-making
• The role of leadership styles in organizational change management
• The impact of social media influencers on consumer behavior and purchasing decisions
• The effects of employee well-being on organizational productivity and profitability
• The role of innovation in driving business growth and competitive advantage
• The impact of digital marketing on consumer behavior and brand perception
• The role of strategic planning in organizational success and sustainability
• The impact of e-commerce on consumer privacy and data security
• The effects of corporate reputation on customer acquisition and retention
• The role of diversity and inclusion in organizational creativity and innovation
• The impact of artificial intelligence on customer relationship management
• The effects of customer feedback on product development and innovation
• The role of employee job satisfaction in reducing turnover and absenteeism
• The impact of global competition on business strategy and innovation
• The effects of corporate branding on customer loyalty and advocacy
• The role of digital transformation in enhancing organizational agility and responsiveness
• The effects of employee empowerment on customer satisfaction and loyalty
• The role of entrepreneurial leadership in driving business innovation and growth
• The impact of digital disruption on traditional business models
• The effects of organizational culture on innovation and creativity
• The role of marketing research in developing effective marketing strategies
• The impact of social media on customer relationship management
• The effects of employee engagement on organizational innovation and competitiveness
• The role of strategic partnerships in promoting business growth and expansion
• The impact of global trends on business innovation and entrepreneurship

About the author

Muhammad Hassan

Researcher, Academic Writer, Web developer

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Research: How to Build Consensus Around a New Idea

• Devon Proudfoot
• Wayne Johnson

Strategies for overcoming the disagreements that can stymie innovation.

Previous research has found that new ideas are seen as risky and are often rejected. New research suggests that this rejection can be due to people’s lack of shared criteria or reference points when evaluating a potential innovation’s value. In a new paper, the authors find that the more novel the idea, the more people differ on their perception of its value. They also found that disagreement itself can make people view ideas as risky and make them less likely to support them, regardless of how novel the idea is. To help teams get on the same page when it comes to new ideas, they suggest gathering information about evaluator’s reference points and developing criteria that can lead to more focused discussions.

Picture yourself in a meeting where a new idea has just been pitched, representing a major departure from your company’s standard practices. The presenter is confident about moving forward, but their voice is quickly overtaken by a cacophony of opinions from firm opposition to enthusiastic support. How can you make sense of the noise? What weight do you give each of these opinions? And what does this disagreement say about the idea?

• DP Devon Proudfoot is an Associate Professor of Human Resource Studies at Cornell’s ILR School. She studies topics related to diversity and creativity at work.
• Wayne Johnson is a researcher at the Utah Eccles School of Business. He focuses on evaluations and decisions about new information, including persuasion regarding creative ideas and belief change.

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