Ingredients of a great business idea

Copyright Roger Pierce. Used with permission.

Many new small businesses are started with a simple idea. Perhaps you've discovered an untapped market, built an invention or just want to improve on an existing business concept.

Some business ideas are more viable than others. If you've got an idea or want to generate one, it's important to first understand the ingredients of good idea to help you decide to pursue it or not. Your business idea should:

• Do something better, faster or differently. Look at existing businesses to see if there's another way to do what they're doing. You don't always have to re-invent the wheel; instead, try to combine the best of worlds into a fresh new approach. Grocery Gateway simply combined grocery shopping, home delivery and the Internet.



• Be inexpensive to start. Your line of credit won't go too far launching your new brand of beer. Try to come up with an idea that involves low start-up costs, such as a service-based business. Opening a retail store or launching a new invention can be very costly and risky.



• Save people time or money. Look for an idea that makes people's lives a little easier, simpler or more affordable. Your business product or service must offer some clear benefit, otherwise people won't buy.



• Ride a growing trend. Fads come and go within six months while a trend will last for years. Make sure your idea is attached to a long-term trend, such as online shopping, home health care or adventure travel.



• Combine your passion with marketplace opportunity. A great idea will put you to work at something you love to do while delivering a product or service that people already want or need.