Choose an idea that combines a problem people pay to solve, skills or experience you already have, and capital that covers setup and running costs. Compare your ideas against written criteria rather than enthusiasm, and start with the one you can test for the least money.
Step by step
- 1
Start with yourself
Write down your skills, experience, contacts and the time you can commit, because a business built on what you know carries less risk.
- 2
Collect ideas from real problems
Complaints you hear at work or around you, services people wait a long time for, and products they travel far to buy because nobody offers them nearby.
- 3
Split your capital before you choose
Keep the setup budget separate from a reserve that covers fixed expenses for several months. An idea that uses all your money on setup is risky however profitable it looks.
- 4
Score each idea on written criteria
Give each idea a score for demand, profit margin, money required, fit with your experience and ease of testing, then compare the totals.
- 5
Test the highest-scoring idea
Try selling a small first version or collect advance orders before you rent premises or buy equipment.
Choosing an idea because it worked for someone else or because it is popular right now, without any edge or experience of your own, puts you in a crowded market against competitors who got there first.
- how to choose the right business idea
- best small business for limited capital