Startup ideas may seem simple enough to come up with, but there are some ways to help ensure yours is a good one. There is a growing wave of entrepreneurs in the UK. More than 4.6 million people in the UK are self-employed, 581,000 start-ups were established last year, and 200% more people have enrolled in entrepreneurship courses since 2014.
It is obvious that more people than ever are wanting to claim the moniker of “entrepreneur.” But how do you materialise those startup ideas of yours into a vision and develop a profitable business concept?
Coming Up With Startup Ideas
As most aren’t, good ideas don’t need to be entirely original. In reality, many successful companies only offer their own versions of goods or services that are already on the market, whether they are of higher quality, more useful, less expensive, or otherwise distinctive and more alluring. The same is true for many other firms in the UK and Northern Ireland, including home-based businesses and online ventures.
A new business frequently turns out to be an updated version of an existing one. Though some great business concepts are difficult, the majority are actually fairly basic. Inspiration for companies might often come from other industries or locations. They may appear after someone sees a need in the market or after they wish to address a problem. For instance, the concept of car boot sales—where unwanted objects were sold to a large audience—inspired selling on eBay.
Sales are the true litmus test of a successful business idea. You must be able to turn a sufficient profit to support the operation and pay yourself as well as any employees. If you can’t, your business isn’t viable.
To succeed when starting up, you require three essential components:
- First, you need enough money to cover the establishment costs and keep you afloat until you can manage successful firms.
- Second, you must have the know-how, abilities, and qualities needed to begin at home.
- A strong business plan is third, and possibly most crucial. It’s that simple: if you don’t generate enough sales, your new company will fail quickly.
Put Your Interests First
Consider how you could turn your interests and passions into potential startup ideas. How amazing would it be to make your favourite hobby a lucrative business?
It frequently doesn’t feel like work when you’re engaged in an activity you actually enjoy. Startup ideas for business that you don’t have true interest in will feel like harder work. Genuine fascination is a terrific motivator and it can enable you to deal with the less pleasant aspects of having your own business. Your passion may be really important and may provide you a competitive edge. Being your own virtual assistant is an option. App developers put their hearts and souls into their work and start from scratch with their favourite imaginations.
It’s not a guarantee that you will be able to transform your passion or interest into a lucrative business. It won’t by itself ensure that enough people will pay your pricing for what you’re delivering, thus your business plan isn’t viable.
The amount of money you need to make also matters a lot. Not everyone starts a business with the goal of becoming wealthy and well-known; other people are content to work for less money in order to do what they truly enjoy. For some, it can be an opportunity to launch a local business and give back to their neighbourhood. Others might be designing gift baskets that people can purchase and give to their loved ones. Both provide rewards.
Your interest or activity may generate enough revenue to support a side hustle that gives you just enough money to get by. A different option would be to mix it with other income (possibly part-time employment). You should carefully determine whether launching a business based on your interest or anything else will yield adequate rewards.
Use Your Knowledge and Abilities
If you can come up with a strong enough idea, you’re in business. Startup ideas can be anything you think would be successful, but you are more likely to succeed if it is something you’re good at. What do you have experience or expertise in? Building on prior work experience has been a key factor in the success of many businesses.
Consider Purplebricks, which was founded in 2014 by Michael and Kenny Bruce after they spent years working in the real estate sector. The company has secured £58 million in its AIM debut and is completely disrupting the market by eliminating the intermediary.
Take a Look at Consumer and Corporate Trends and Consider What Comes Next
To determine whether a business idea is viable, market research is crucial. Look at recent analyses of industry and consumer trends, as well as expert comments. By doing so you can locate a prospective business opportunity right in front of you.
Do Market Research and Look For Opportunities to Capture Your Share
Analyse potential markets to see if you can find a method to get a piece of the action. Consider how you might develop a firm similar to one that is already flourishing in London, for example, but on a regional or even national scale. Craft beer clubs and services are a good illustration of this; while Edinburgh-based Beer52 has swiftly acquired popularity, London-based rivals like HonestBrew are also rising quickly.
In a similar vein, consider international markets and consider how you may import a well-liked good or service to the UK. For instance, start-ups like Bio-tiful Dairy have helped fermented yoghurt beverage Kefir, which has long been a favourite in Russia, gain popularity in the UK.
Consider Solutions That Might Improve Your Life or the Lives of Others
Startup ideas can be something beneficial to you, or beneficial to the whole world. Consider developing a good or service that, no matter how modest, could genuinely change something. Instead of only considering solutions that might affect you individually, consider it from the standpoint of a mother, father, son, daughter, student, etc.
As an alternative, you may create a company whose aim includes social or ethical goals, much like Innocent Drinks, which donates 10% of its income to charity.
Explore the Globe and Try New Things
Travels abroad served as the inspiration for some of Britain’s top enterprises. The founders used their distinctive travel experience as a springboard to start a lucrative business. Similar to the previous level, a key component of this is deepening comprehension of a wide range of viewpoints.
Network Like Crazy!
What better approach to stimulate your entrepreneurial spirit than to interact with successful start-ups and those who are considering starting one?
Consider Your Motivations
Is it to become your own boss and leave your job? to earn a living? Assist others? Or are you producing something a little more effectively, more quickly, and at a lower cost?
Most of the time, you won’t be able to start making money right immediately, so as you build your business, you’ll need to be thrifty and have some cash on hand. A clear mission will offer you a sense of direction. Passion comes from having a purpose. Additionally, it’s often profitable to combine your passion with your purpose.
Be Ready for Challenges
Nearly half of all UK small business owners acknowledge that starting a firm required giving up family time, vacations, and income, and 1 in 8 report only getting 3-4 hours of sleep every night.
Not everything happens overnight, so you need to carefully consider how you’re going to handle the difficulties and challenges that starting a business can bring. While starting and running a business can bring you great happiness, independence, and profits, you have to be patient. Read more here about some problems startups often run into.
Consider What You’ll Require to Get Started
Read our home-based business guides if you want to launch your business from home. Alternatively, you could choose to launch your business as a side project while you’re already employed.
The majority of startups will require funding to launch. This could take the shape of a bank loan, equity investment, asset finance, start-up loan, angel investment, crowdfunding, or many other things. For more information, read our blog post on how to apply for a startup visa.
Once your startup ideas are narrowed into a practical business plan, you should consider actually starting your firm. Start by developing a business plan, picking a name for it, building a website, and other related tasks. Depending on what kind of business you start, you also may want to think about your pricing strategies. Hopefully this was helpful and can effectively guide you on your journey.