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Develop an innovative business idea: Your path to success

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Develop an innovative business idea: Your path to success

Developing a business idea sounds easier at first than it actually is. At least if it is a good business idea with future prospects. However, once you have conceived an innovative idea, this can be your springboard to financial independence.

Many a budding founder is struck by the spark of a business idea as if from nowhere. If the circumstances are favorable, i.e. the idea is in line with the spirit of the times and the right contacts are available, success can come quickly. However, this is the exception rather than the rule.

Developing (and implementing) a business idea is usually more of a marathon than a sprint. It requires a structured approach and thorough planning. Often it is also necessary to adapt processes in the course.

What is the definition of a business idea?

A business idea is an idea that has the potential to establish a stable economic existence with its implementation. At the beginning of every successful Business The first step is to come up with a business idea. Sales, marketing, development and financing concepts are then built around this core idea.

Developing a business idea: What makes a successful business idea?

Not every business idea is equally viable. There are enough concepts that have failed. Therefore, if you want to develop a good business idea, you should definitely know the most important criteria.

These include:

  1. A clear customer benefit
  2. A sufficiently large target group
  3. Feasibility and profitability
  4. Uniqueness

The above criteria are practically self-explanatory: investing time and money in the development of a product that is of no use to anyone, that already exists, or that is too complicated to manufacture, can truly not be called goal-oriented.

Therefore, it is even more important that you carefully review your business idea with regard to the criteria mentioned above.

find business ideas develop

How do I find a good business idea?

Are you the kind of person who makes a thousand different plans and then discards them? Instead of getting caught up in countless possibilities, you should focus on developing a business idea that is suitable and feasible for you. This includes a realistic self-assessment: What are you really good at? In which areas do your talents lie?

Interesting to know: Developing a business idea and, above all, being able to implement it successfully is not only a question of professional competence, but also of the Self-awareness. The most common reason why even promising ideas remain only theories, according to an experimental Study of the University of Duisburg-Essen the fear of failure.

First of all, it makes sense to note down various ideas within your area of competence and then to examine them in more detail with the help of a mind map. By writing down your possible business ideas, you will notice inconsistencies in good time. In addition, most people automatically think of new aspects when writing down their ideas.

In addition to your personal talents, the current market situation also plays a role. Even an idea that is grandiose in theory is doomed to fail if it doesn't meet the current taste of the times. Therefore, you should ask yourself: What do people want right now? What gap in the market could I fill with my idea? What (current) problem does my service/product solve?

Developing a business idea using the 4P strategy

As already explained, your business idea should have a clear focus. This can be of a of the following four elements:

  • Passion
  • Audience
  • Problem
  • Product

Let's take a detailed look at the possible focal points:

Passion

Most founders wish to turn their passion into a profession. Do you have a (creative) hobby? Under given circumstances, you could develop a business idea from this.

Let's say you're passionate about writing stories. Then take a look at the book market: What genre is currently in demand? What's considered unfashionable right now? How can you write a story that fits the current trend but is still unique?

It is important that you are able to inspire people with your passion as well. This is not possible with all topics. Therefore, a thorough market analysis is indispensable, especially in the field of creativity.

Audience

Tailoring your business idea to a specific target audience is a worthwhile approach to your eventual success. Provided, of course, that your target group is large enough. This needs to be checked in advance.

To find a potentially profitable business idea, it is advisable to observe your environment closely: What are your friends, colleagues and family members interested in? Of course, you should later plan far beyond this small circle, but as an initial orientation this approach can prove useful.

Nowadays, there are interested parties for almost every subject area. Satisfy these interests by designing an appropriate product or service specifically for your target audience.

Problem

The everyday problems of the people around you can form the basis of your business idea: What is on people's minds right now? How can you offer a concrete solution with your product or service? Later on, we will use the example of Shyp to illustrate this point.

Product

A product-oriented business idea should appeal to as broad a target group as possible and at the same time be distinctive. If you have an idea for product development, be sure to check whether there are already comparable products on the market and think about how you can outdo their merits.

5 steps how you can develop a successful business idea

We have already familiarized you with the most important criteria for a promising business idea. In the following, we would like to introduce you to five concrete steps that will help you develop your own business idea.

Step 1: Focus on key growth areas

In our modern society, where there is no need, more and more people are concerned with the topic of self-realization. Your customers strive for happiness, success and personal fulfillment. You should always keep this knowledge in mind as you hone your business idea. In recent years, the following three growth areas have emerged:

  • Sport & Health
  • Dating & Relationship
  • Money & Business

There is great demand in these areas, but the competition from competitors should by no means be underestimated. This primarily refers to the large corporations that dominate the market. The challenge for you is therefore to find your own niche within the popular sector that can be expanded.

Example: You want to design a dating app. Instead of emulating Tinder, Lovoo & Co., it would make much more sense to look for a gap in the market. For example, how about an app for single singles over 40 in region xy?

Step 2: Be inspired by your environment

As a budding founder, you should always keep your eyes and ears open: Inspiration can be found practically everywhere! Do you like to travel? Then don't just take in the cultural sights of foreign countries, but also look at the market trends there: Maybe you'll discover a product or service abroad that doesn't yet exist in Germany?

Of course, not everything that is popular and works well abroad can be transferred one-to-one to the German market. Think about which adjustments are necessary so that your idea is accepted by your target group.

Furthermore, it is recommended that you actively engage in exchange with other people. Listen carefully when friends, family or other founders tell you about their everyday work. Maybe you will learn about working methods that can be transferred to your work in a different way?

Step 3: Develop business idea - braintrust and masterminds

A brain trust or mastermind is the name given to a committee of experts, or colloquially, an association of clever minds. This means: Look for allies! Even if it's your idea, this doesn't mean you have to go your way alone. In fact, most founders seek support at some point - and that makes sense.

Are there people in your environment who have resources that can help you implement your business idea? You may be able to convince these people of your idea. Otherwise, you have the option of searching for like-minded people on startup platforms.

Step 4: Use criticism to learn

There will always be people who doubt your business idea. Be prepared for the fact that it will take a while before you gain investors or even customers. It is possible that one or the other critic will even describe your venture as having no chance of success. Instead of letting this discourage you, you should analyze the arguments carefully: Could they be right?

This in no way means that you should give up. Rather, it is about readjusting your business idea. Constructive criticism can help you expose sources of error and make the necessary adjustments. changes to do. As soon as someone criticizes you, ask them what you could do better!

Unfortunately, in addition to serious critics, there are also naggers and envious people who deliberately want to make you feel insecure. It is sometimes not so easy to distinguish between the two. Serious critics can basically give reasons, what they do not like. This is usually not the case with complainers.

Tip: Before you make your business idea available to a larger audience, it makes sense to work with test customers. This way you get valuable feedback.

Step 5: Think future-oriented

If you want to develop a profitable business idea, you should always keep an eye on social and, above all, digital developments. Think about how you can make your work processes as efficient as possible.

The way we work in the future will become increasingly digital. So it's already worth thinking today about what else might change in this respect: Are you sufficiently prepared for it?

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Developing a business idea: What do you need to successfully implement a business idea?

Developing a business idea is the first step. After that, however, it's a question of how your idea can be realized. What you actually need depends, of course, primarily on the "P" you have chosen and whether it is a product or a service. Basically, however, it comes down to two essential aspects: the Business plan and funding.

The business plan

First of all we come to the Business plan to speak. Many founders are under the erroneous assumption that creating such a plan is the first step. Sure, the basic framework should be in place. However, you can't anticipate how your business will develop. A reliable statement on this can only be made after about six to 12 months.

Write your detailed business plan earlier, there is a risk that you will have to constantly rewrite it. This costs valuable time and energy that you could use better elsewhere.

The financing

To turn your business idea into reality, you will need some start-up capital in most cases. The temptation to take out a loan or rely on investors is understandable. However, you should avoid this as much as possible during the start-up phase. First of all, try to grow from your own resources. In technical jargon, this is called "bootstrapping".

By maintaining your independence, you reduce the financial risk in case of failure. Of course, you should keep your Business not build up with a negative basic attitude. A certain degree of caution is nevertheless advisable despite all the enthusiasm.

Let's assume that business doesn't develop as hoped and you have to pay off high loan debts. This deprives you of the financial leeway for necessary adjustments. In the worst case, you cannot pursue your idea due to a lack of funds.

Developing a business idea: How do I know if my plan is successful?

To calculate the success of your business idea, a simple formula exists:

Maximum target group size x purchase frequency (purchases within a specified period) x price = sales potential

Example: Your business idea is to set up a food truck with healthy fast food in a busy industrial area. The following ratios are important for calculating your business success:

Target group

  • Number of employees in the industrial area: approx. 60,000
  • Average earnings: approx. 2500,00 €
  • Interest in alternative fast food and healthier eating
  • Alternative to canteen food desired

You assume that about 600 people can become regulars within the next 24 months. This corresponds to about 10 % of the potential target group size. These 600 people visit your food truck twice a week and spend an average of €12.00.

The monthly sales potential is calculated as follows:

600 (target group) * 2 (purchase frequency) * 12 euros (price per meal) = 14,400 euros sales potential per month

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Examples of successful business ideas

Developing a business idea and establishing a livelihood with it is a major undertaking that can be fraught with stumbling blocks. However, thousands of other founders have already succeeded before you. This knowledge should help you EncourageYou need to believe in yourself and continue to follow your path. Therefore, in conclusion, we would like to present you with two inspiring examples.

Shyp

Who online would like to sell something, knows the effort that shipping brings with it. Getting the package, packing the goods and taking the whole thing to the post office is considered a nuisance by most people. The company Shyp has recognized this problem and developed an ingenious business idea from it.

The service works as follows: The user simply takes a photo of the goods to be shipped and specifies the pickup location and the recipient. Shyp picks up the goods, packs them and ships them worldwide at favorable conditions.

Hotel Tonight

Less is more: This simple principle has been taken up by the provider Hotel Tonight in its business idea. In the jungle of last-minute hotel offers, package tours and guesthouses, many a user literally cannot see the forest for the trees. Hotel Tonight therefore provides its users with a clear list of current last-minute hotel offers in the selected city/region.

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Reviewed by Dr. med. Stefan Frädrich

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