2.03 – Creating a Winning Idea
Every business starts with the germ of an idea, often stemming from a feeling that customers are getting a raw deal from their current suppliers. This lesson will explore tried-and-tested ways to help you come up with a great idea for a new business.
Ranking Popular Start-Up Ideas
The government periodically publishes statistics on the types of businesses operating in the UK. These statistics provide valuable insights into popular business sectors and their growth trends.
You can view these statistics in Table 2-1, which shows the number of active UK businesses by sector, along with new business starts (births) and business closures (deaths). You can find more detailed information on the www.gov.uk website by searching for ‘business population’.
When considering entering a popular business sector, you might see it as a great opportunity or as a field saturated with competition. For instance, the Transport and Storage sector has a high proportion of both new entrants and closures, indicating market volatility. Your task is to thoroughly research the market using Chapter 4 as a guide.
Understanding Business Birth and Death Rate Chart
The business death figures in Table 2-1 don’t necessarily mean all those businesses collapsed. Business deaths include those whose owners retired, sold, or merged with other businesses, which can be successful outcomes. Some genuine failures are present, but they don’t represent the whole picture. This topic is covered in more detail in ‘Exploring the myth and reality of business survival rates’ later in this chapter.
Exploring Promising Business Sectors
Websites like Really Simple Systems, Entrepreneur.com, and Inc. Magazine regularly track the hottest business sectors. Here are some promising areas:
Health And Wellness Technology
The pandemic accelerated digitization in healthcare, with startups using telemedicine and remote diagnostics. Opportunities abound in areas like live-streaming yoga classes, making wellness services accessible globally.
Online Learning Platforms
Remote learning surged during the pandemic. Online education offers convenience and a wide range of subjects for all educational levels.
Food Delivery And Catering
This sector has been growing steadily. Companies like Deliveroo have led the way, and new opportunities have emerged in catering vans, ghost kitchens, and food delivery apps.
Green Energy And Renewables
Governments worldwide are investing in green energy, making this a growing sector.
Senior Market
With an increasing population of over-64s, this sector offers numerous opportunities. Gerontology and aging-services management are hot areas, reflecting growing interest in enhancing the quality of life for seniors.
Content Writing
The pandemic boosted online sales significantly. Businesses now rely on high-quality content to retain customers and attract new ones. Content writing is a valuable skill, and demand for it is high.
Explainer Videos
Short, informative videos are a powerful tool for engaging potential customers. Businesses value video content for its ability to improve search engine rankings and site visibility.
Finding a Market Gap
Identifying a market gap is a classic way to spot a business opportunity. Consider these approaches:
Adapting: Bring successful ideas from other regions or countries to your market.
Locating: Fill a geographic void where customers travel too far for their needs.
Sizing: Offer products in sizes that cater to different market segments.
Timing: Adjust operating hours to meet customer needs better.
Inventions and Innovations
Inventions and innovations often come from solving interesting problems rather than identifying market gaps. For example, the Post-it note was developed from an adhesive that didn’t meet standard tests but had unique properties.
Leveraging Education and Experience
Business ideas often come from knowledge and experience gained in previous jobs. It’s essential to gather a flow of ideas before finding one that appeals and appears viable.
Useful Resources for Business Ideas
- Websites: Browse sites like Entrepreneur.com for business ideas and information on start-up costs.
- Magazines: Read periodicals like Start Your Business magazine for monthly ideas.
- Publications: Scan newspapers and general magazines for sections on small business opportunities.
Avoiding Scams
Be cautious when responding to advertisements for business ideas. The Advertising Standards Authority (ASA) warns against fraudulent schemes. Websites like Scambusters.org and Fraudguides.com track the latest scams.
Establishing a Unique Selling Proposition (USP)
To succeed, your business must offer something better or different from competitors. A USP or killer application provides a competitive advantage. For example, Dyson’s bagless cleaner and Amazon’s one-click shopping system are USPs that set them apart.
Example: DnaNudge and COVID-19 Testing
DnaNudge, founded by Professor Christofer Toumazou and Dr. Maria Karvela, developed a 90-minute COVID-19 test. The company secured a UK government order for 5.8 million cartridges, showcasing the power of innovation and a strong USP.
Conclusion
Creating a winning business idea involves understanding market trends, identifying gaps, and leveraging your unique strengths. With persistence and the right approach, you can develop an idea that stands out and meets market needs.
