Before you can begin the entrepreneurial journey, you need to come up with the concept. The new idea to base your business around.
It’s your big idea. What I call “the Thing”. The one that’s going to make you that million bucks. Well, that’s the idea anyway.
So where do you start?
This article is a guide to choosing a number of ideas to look into. We are NOT choosing the final thing until after we have done extensive research into which “thing” will produce the best results.
The idea of this article is to brainstorm many ideas and to create a list of 5-10 different markets and ideas.
Once we have this list, I will show you how to filter these ideas and do extensive research into the remaining ideas. Until finally we find the best possible match.
The first place is to look into some vertical markets.
1. A Vertical Market
A vertical market is focused on a single group of customers with specific needs or requirements.
Typically you will find the best markets revolve around these three things. The things people are always prepared to pay for.
These types of businesses have motivated hungry customers.
As Gary Halbert said “..give me a starving crowd”.
So make sure to base your idea around at least one of these three things.
- Something people are passionate about
- A pressing problem people have (that you solve)
- A way of life or a lifestyle people live
How do I come up with ideas?
Start with your own life. Do you have passions? Look at the people around you. Identify some passion-based businesses.
Businesses built around passions are great for a couple of reasons.
- They’re easy to work on (because you enjoy them)
- You know they’re a passion-based niche (because you’re passionate about it) there is a good chance others will be also.
Create a list of passions.
If you don’t have any passions, create a list of hobbies.
Interests could also be added to the list. What are you interested in? Write it down on the list.
It could also be something you don’t know.
Something you could be interested in to become an expert over time. You could also document and share your journey through this process, and talk about what you have learned.
Add to the list some problems.
Look around you. Observe the people you meet. The world is full of problems looking for solutions.
If you hear someone say. “That is annoying” – “I hate it when it does that!” – “I wish I could do XYZ with this!”
You are hearing a problem.
People are always willing to pay for a solution to a particular problem.
For more read: Solve Problems and Create Solutions
Add in some lifestyle verticals.
2. Your Particular Skills
Next, create a list of your skills.
Things you’re knowledgeable about. Things that you’re good at.
What are your strengths and weaknesses?
3. Profitability and Monetisation
It has to make money. So it needs to be in a profitable industry and capable of making money.
Check this list for possible ways to monetise yourself online.
The thing to take away from this section is competition. Is there already somebody doing what you want to do? This is always a good sign.
Yes, you want the competition. I get a bit concerned if I am the only one doing this thing. It typically means if no one is doing it, there is no money to be made with this idea. Usually!
4. The Angle
The angle is your unique spin on the vertical. For Example, if the vertical was Gardening, then the angle would be ‘spinach specialist’.
What are you doing differently from everybody else? How do you expect to compete if you are not different to what is already out there? How will your site stand out?
5. Putting it all Together
Your final choice should be a combination of all three points.
I’d do that by drawing three interconnected circles and including something from each of these:
- Something from your Passions, Problems and Lifestyles list
- A Knowledge you have or/Skills you have from your skills list
- Earnings and profitability research and monetisation strategy
- A unique twist on the vertical
Considering the best markets will have a variety of businesses doing well with a diverse range of products being promoted make sure there are other players in the market.
This will make it easy to reach out and make connections and friends in your industry.
Find a combination that really works. You will know when you see it.
If you have any questions, just leave a comment or question in the contact form. I will leave a reply here in the post, so my answer can benefit everybody. If I have missed something let me know and I will add it to the article.