Steps to be followed by entrepreneurs to identify startup ideas.
In the era of the startup, with many startups getting on board daily, it will be difficult to find an idea that has huge potential and ca grow. The main reasons for these difficulties are
- The startup idea might have already been established
- Increasing competition
- Increasing startups means less funding.
- More stringent research by the investors as there are many to choose.
In all these scenarios an entrepreneur who wanted to start a business has to be very cautious in launching his idea. He has to go through a lot of things before identifying a potential idea.
Below are the important that need to be followed in serial wise to identify a potential idea.
1. Identify Problem
Most of the successful startups revolve around one thing. The problem that users are facing. All the leading startups in the industry are built around this formula. You have to identify a problem that is prevalent.
To identify this you have to consider ground scenarios. Think of your daily life. Think of your world around you. Make a list of all the possible ways life can be made more comfortable for people.
With the rapidly expanding technology, people are welcoming new ways in which their lives can be made easier. So try to find a thing that will make people’s life more comfortable.
Like before the emergence of OYO, it is difficult to book a room for tourists in an unknown city. It solved this problem. Before the emergence of Swiggy, you have to move too far long restaurants to have food. This app made life easier. Before the coming up of ola, it is difficult to get a cab at midnight to Airport at an affordable price. This solved an important issue.
This is the way all the leading startups try to make the life east for people. Try to find such an issue around you. Try to relate it to your life. Is the problem such a big one that people will accept a new technology in it.
List all such possible problems and things that will make life easier on a paper. We will move forward and evaluate all these ideas in detail.
2. Find solutions for the problem
Now you have a list of problems and also things that will make the life of a person more comfortable. Now its time to find a solution to make life easier and comfortable.
Now think of a possible solution to each of the issues that you have noted down. If you don’t find any solution to the problem, then that problem is of no use to us. And also list all the methods and ways by which one’s life can be made more comfortable and easier. These things can also be modeled into a possible business opportunity.
While writing the solution, be innovative. Think of the latest startups in the industry. How they approached each thing. How their ideas revolutionized the startup in that field. You have to be very innovative in this thing.
Make sure to think out of the box and write down all the possible solutions to each and every problem. We will move forward to see which one to proceed further. We will use more details to identify which one can be modeled as a possible business opportunity.
3. Identify probable Capital Required
Now you have different ideas for different problems. Now the present step requires a lot of research to be done. Now we will be identifying possible approximate capital required for each of the above solutions.
You have to research online to find the capital required. For getting the capital, you need to consider a lot of things. Below is the minimum list that needs to be considered. The list is not complete, based on your startup you have to consider a lot of things.
- No of employees required
- App creation cost.
- Website domain and hosting
- Office cost
- Marketing costs
- Product delivery costs
One suggestion is that always consider some percentage extra in each of the approximations. Because in startups you will always get unexpected expenses. You have to be ready for everything.
4. Identify the market Scenario
Now you have the ideas and also the amount of capital that is required. now we have to see if the idea is accepted by the market.
One important thing here is that you don’t share your complete idea with anyone. Because they may steal your idea and start a startup before you do. So just simple details about your solution to the problem, but not complete details.
Now just create a form and release it online. Publish details about each problem and also the solution you have thought. Ask your friends for a review of the solution. Ask your relatives. Don’t stop there with your relatives and friends. Ask all the people on social networking. Share it in maximum persons and get their opinions on each of the ideas.
This is an important step. A lot of organizations run huge online campaigns to get the views of people in launching a particular thing. You have to do the same You have to use the online tools and get as much data as possible regarding each and everything you have written.
Based on the market research, identify few that have huge potential. That is accepted mostly by the people. Let these ideas be finalized by all the scenarios considered above. Be very clear in selecting these ideas, as we are in the final step and your entire future time and hard work will be spent on the startup working on one of these ideas. Don’t let your emotions come into play, and dominate your decision-making ability. Be very cautious.
5. See to fit a business model with the problem
Now you with you all the market research supported ideas. You have in your hand already huge potential ideas, if your market research is extensive and correct. Now we need to fit a business model into these ideas.
Try to fit a business model. So what is a business model?
The business model is nothing but a business plan that lists the services that are provided by the startup, the media with which the company makes a profit.
To be exact in a simple way, the Business model is the explanation of how a business makes a profit and how it will provide services to make customers satisfy and sustain in the market.
You have to remember one thing is that profit is necessary for a company. you have to see the option and check which one has good profit-making potential at the same time mostly accepted by the public.
So this is the way how you have to identify a potential idea. You have to be very detailed and satisfied in making any decisions. Never just assume anywhere in the decision-making process. You will be going to invest your time and money in these business ideas. So think about it carefully.