12 Steps To Finding a Business Idea That Will Lead to Success

Starting a business is a common venture in the U.S., with 31 million entrepreneurs comprising 16% of the adult workforce, as per ThinkImpact data. However, not all entrepreneurs achieve success. Approximately 20% of new businesses fail within the first two years, 45% within the first five years, and a staggering 65% within the first decade. Only 25% of new businesses manage to survive beyond 15 years.

If you are considering starting a business, don’t let these statistics deter you. Instead, focus on how you can launch a business that stands a greater chance of success. To help you get started, I’ve compiled a list of essential steps to follow:

Step 1: Identify Your Strengths and Passions

Begin by creating a list of 20 to 50 things you excel at and genuinely enjoy doing. Don’t rush this process; take your time to ponder your skills and passions deeply. Narrow down the list to those areas where you outshine the average person due to your expertise and knowledge. Moreover, consider which of these activities you would gladly pursue even if there were no financial rewards.

Step 2: Seek Guidance from ChatGPT

Once you have shortlisted around three potential business ideas, engage ChatGPT to gain insights on the most profitable avenues and the initial steps required to achieve your first sales milestone. Use the information to craft a one-page business plan centered on achieving your first $5,000 in sales. It’s an ambitious yet achievable target that will keep you motivated.

Step 3: Explore Unexploited Business Areas

While many focus on industries AI might replace, consider turning your attention to areas where AI is unlikely to have a significant impact. Look for opportunities in service industries and community building programs and businesses. These sectors are bound to remain in demand, creating a sustainable path to success.

Step 4: Learn from Bad Customer Service

Recall a negative customer service experience you have encountered. You can transform this ordeal into the foundation of your business venture. Identify gaps in the market that you can fill with your expertise, based on your bad experience. PostcardMania, for example, was born out of such an experience and has flourished into a multimillion-dollar venture.

Step 5: Engage in Business Chat on Reddit

Reddit offers a rich platform to interact with individuals who have launched their own businesses. Delve into relevant subreddits to understand industry pain points and potential opportunities. Learn from others’ experiences and gather valuable insights.

Step 6: Seek Feedback from Trusted Individuals

Discuss your business ideas with people you trust, whether on social media or in your personal life. Seek advice and consider pre-selling your product or service to them to gain early revenue and momentum.

Step 7: Utilize Google Ads Keyword Tool

Leverage the Google Ads Keyword tool to assess search traffic for different keywords related to your business idea. Ensure there is a sufficiently large audience actively searching for your proposed product or service to establish a viable business.

Step 8: Conduct Thorough Market Research

Market research is a crucial element in your journey to success. Dive deep into your potential customers’ world by conducting surveys, interviews, and focus groups. Understand their desires, needs, and challenges, and identify shortcomings in existing products or services. This information will serve as the bedrock of your entrepreneurial adventure.

Step 9: Embrace a Green Approach

In today’s climate-conscious world, consider developing a business with a green focus or angle. Sustainable businesses occupy a unique place in the market and appeal to environmentally conscious consumers.

Step 10: Stay Informed through Business Publications

Subscribe to reputable business publications, both online and in print, to glean insights from experts in various fields, from finance and technology to marketing and entrepreneurship. Engage with the content, take notes, and reflect on successful businesses’ strategies.

Step 11: Explore Franchising Opportunities

If starting a business from scratch feels overwhelming, consider buying into a franchise. Franchising provides a proven business model and ongoing support, reducing the risks associated with a startup.

Step 12: Build a Support System

While you may be the driving force behind your business, having a strong support system is vital. Surround yourself with family, friends, mentors, or fellow entrepreneurs who can provide valuable advice, empathy, and encouragement during your journey.

Remember, the road to a successful business venture may be challenging, but with determination, passion, and careful planning, you can increase your odds of achieving prosperity. Stay committed to your vision and continually seek growth opportunities as you embark on this exciting entrepreneurial adventure.