Home Plan Idea Bank
Updated: 2016-08-04 11:45

Idea Bank

Once you decide to start your own business, all you need to do is to find a good business idea and to realise it!

  1. Find your business idea
  2. Check the idea for its potential
  3. Business idea realisation conditions
  4. Start your own business

1. Find your business idea

Business idea is the very first step towards successful business. When thinking about your own business, consider the available resources (time, contacts, skills, knowledge, hobbies, tools available, real estate, etc.), people's needs that are not satisfied yet, learn about franchising possibilities.

Ideas for business can be found in many sources:

  1. Your personal need - product or service which you and your family and friends are lacking, for example, a gym in your estate, a café, cleaning services, car wash, grocery, etc. Having found such unsatisfied need, start your own business.
  2. Foreign experience - if you went abroad or your friends told you about a service or product that you liked but which is not available in Lithuania yet - it could be an excellent idea for new business. Referring to practices in other countries, you can find ideas and learn from the practice of those countries.
  3. Your professional competences - taking into consideration your professional competences and experience, you can start your own business. For example, if you are good at cooking, painting, make-up, etc., it can be the foundation for your idea.
  4. Internet - by browsing internet you can look for ideas, thoughts for your new business. There are many different webpages offering ideas for business:

You will have a successful business if you will be doing what you really like and enjoy. Before starting your own business, you have to assess your idea, whether it is good, whether it will prove to be right, whether business will be good for you and your customers, whether it will bring profit, success? Before starting realising your business idea, we recommend you to identify the outcomes you expect and risks you are taking. Try to answer a few questions given below, which will help you to understand if you are on the right track.

Think through your business idea and answer the following questions:

  • How much will it cost to start the business?
  • Do you have sufficient funds?
  • If you need additional financing, will you be able to meet the bank requirements?
  • Have you studied the market of the future product or service well?
  • What advantages does your idea have over other ideas, which have already been realised?
  • What makes your product or service needed?
  • Who will be your customers and do you know them?
  • Who will be your rivals?
  • Will you be able to compete with the rivals who are already operating and are well-established on the market?
  • What are your advantages over your rivals?
  • Do you know which market share you could occupy?
  • Is the market of your product or service growing or decreasing?
  • Is there a place on the market for another similar product or service?
  • When will production of the item or provision of the service start bringing profits?

Various methods are used for generation of ideas and their detail specification. Some of them are presented below:

  1. Walt Disney method http://www.idea-sandbox.com/blog/disney-brainstorming-method-dreamer-realist-and-spoiler/
  2. Scamper method http://www.ideaconnection.com/thinking-methods/scamper-00022.html
  3. Mind map http://www.mindmapping.com/
  4. Brainstorm http://www.mindtools.com/brainstm.html

We often hear people saying that one should keep his business idea to himself without sharing it with anyone, because there is always a possibility that someone will pocket it. But practice shows that sharing your ideas can be useful: first of all, opinion and observations of others (friends, family and acquaintances) help to see the shortcomings and advantages of the idea, help to improve the idea, on the other hand, it is an excellent opportunity for finding your business partners, with whom it can be much easier to start business than on your own. 

2. Check the idea for its potential:

  • Consider the potential market, who your customer is, how much you could sell to him/her, is the market going to grow or to shrink in the future.
  • Consider your competitors:  whether there are any, who they are, which products they offer, what you can offer better than they do.
  • prepare your business plan: identify your strengths and weaknesses, potential threats and opportunities to neutralise them.  
  • using Business plan financial calculator, check if your idea will generate profit.

When identifying your advantages, you can consider the following aspects that could make you stand out on the market:

  • Price;
  • Quality;
  • Location;
  • Need;
  • Benefits;
  • Environment;
  • Exclusiveness.

3. Business idea realisation conditions:

  • decide on the business form, whether you will be engaged in sole proprietorship or will establish a company. Start-up businessman's directory will help you to decide on the business form and other related matters.
  • secure necessary initial funds.
  • buy or lease premises, tools and equipment needed for business.
  • obtain licences if needed.  Questionnaires will help you to learn more about required licences and their issue procedures.

4. Start your own business:

  • settle staff and related issues: describe the duties to be performed by employees, create record-keeping system and various procedures, company's structure, motivational system, organise recruitment, employment, training, dismissal, and other tasks. More information on employment is available here.
  • organise production or service provision process, take care of performance quality and efficiency, if possible, have ISO and other necessary standards implemented.
  • search for marketing solutions and put them into practice, do not forget a website and other IT possibilities.
  • take care of financial side of your business: cash flow planning, search for and attraction of necessary funds, sales and settlements of accounts with suppliers, bookkeeping and taxes.