How to come up with a good business idea (part two)

Last time I started writing about how to come up with a good business idea by looking first at what you like to do for fun, what you’re good at and what you’ve learned from places you’ve worked. While these are clearly the best places to start, another way to approach coming up with a business idea is to look at what’s going on around you.

Start by asking the question, “What’s missing?” What is missing in your hometown? Is there something you love to do or someplace you like to shop every time you go to Charlotte, Atlanta or Asheville that you can’t get in your town? Could a business like that work where you live? In some cases, there might not be a big enough market or enough of the right type of customers, but in many cases, it just means that no one has tried it yet. Bigger cities can be great places to find new ideas. Eventually many of those ideas trickle down to smaller markets. It wasn’t that long ago that you couldn’t find gourmet coffee shops or Thai restaurants in small towns. What trendy things are happening that might work where you live?

Another question to ask is “ What frustrates you?” Do you find yourself complaining about poor customer service at a certain business? Do you not like the fact that you have to drive all the way across town to get something or that when you leave a message someone doesn’t return your calls? Do you complain about something being too expensive? Do you wish someone would provide a higher quality product or service? All of these things can lead to business ideas. If you are frustrated, chances are there many others out there just like you…and all of them are potential customers.

Perhaps the best place to look for ideas is in trends. Think about what’s changing – demographics, politics, the economy, culture, technology, globalization, social changes. Change equals opportunity. 80 million aging baby boomers create tremendous opportunities in leisure activities and health care. The Obama administration and policies that are changing as a result can make businesses viable that weren’t just as recently as last year (e.g. energy tax credits). The economic crisis is great for some businesses (think auto repair and grocery stores). The increasing use of SmartPhones is (finally) making the internet available anywhere, anytime. What kinds of services/products could you sell if you assume that increasing numbers of potential customers can now buy them without being tethered to a personal computer? Here’s a great example: Charleston City Slicker was recently recognized by Apple as the first self-guided, walking tour for the iPhone (www.cityslicker.com).

These are all great sources of ideas, but how do you come up with a GREAT idea? Look for something that combines your interests and talents with what’s happening around you. Let’s say for example that you like to travel. Combine that with aging baby boomers (many of whom will want to travel) with more portable internet access and increasing interest in all things green and see if you can come up with a really unique idea. Connect the dots and try to find that great idea that no one else has thought of yet.