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Tips for coming up with your new business idea

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Employment opportunities are few and far between these days, and those that are available rarely tick all the boxes. In response, South Africans of all shapes and colours are starting their own businesses – by all accounts, 97% of all local businesses are self-started small, medium and micro enterprises. While running your own business certainly has its fair share of challenges, it can also be an extremely rewarding, lucrative and empowering pursuit.

Moneymaking opportunities are all around you if you have the knack for spotting them, though it can be difficult at first to develop a solid, marketable and interesting concept for a small business. Here are four vital pointers that you should follow before you pay a cent or take the first step to starting your own business.

Tap into your passion
It’s no good thinking you want to start a small business and then trying to come up with a likely idea – entrepreneurs who take this back-to-front route often fail because their hearts are not really in the project for the long haul. On the other hand, those who throw themselves into a lifelong passion or who realise a dream that’s been niggling for a decade tend to flourish.

Ask yourself honestly if you have an idea you are so passionate about that you could devote the next 10 years of your life to it. And don’t forget to consider if starting a small business is really for you – if you’re not interested in the all-or-nothing entrepreneurial world, you may find it hard to get your idea off the ground.

Solve a problem
All businesses, big and small, have one thing in common – they provide a service or product that solves a problem. Dishcloth manufacturers solve the problem of dirty plates; personal trainers solve the problem of being unfit or unmotivated; wedding planners solve the problem of too-much-to-do, not-enough-time.

So, ask yourself – what problem do you want to solve? And once you’ve defined it, ask if there is a problem at all. How many people have this problem? Can they solve it for themselves, or do they need help? Is anyone else trying to solve the problem? Answering these questions will give you a good sense of whether the idea is worth pursuing at all, and what niche or group it would be aimed at.

Create your elevator pitch
An elevator pitch is a 20-second summary and explanation of your idea. If you were stuck with someone in an elevator, how would you describe your business during the short ride? Ideally, your elevator pitch should include one sentence that fully summarises your offering, and then a bit of extra detail if there’s time.

For example, “Susan’s Stylings is a one-stop home decoration service that covers everything from sourcing furnishings to hands-on interior decorating,” or, “The Gym-a-thon is an innovative handheld device that tracks your workouts and helps you reach your fitness goals.” Creating an elevator pitch provides you with a lot of clarity on your concept. If you can’t summarise your idea in a sentence, then it probably needs a bit more defining.

Research, research, research

There is absolutely no substitute for performing thorough research before you even consider launching a business around your idea. You need to gather information on how many local businesses already fill a similar need, whether anybody is experiencing the problem you want to solve, what your target market looks like and how much somebody would be willing to pay, among other things. The offshoot of this is that you may end up with a very different and much better idea.

You can conduct research in a number of ways. The internet is your friend – spend time searching for keywords and phrases related to your business and see what comes up. Look at local business blogs and directories, read trade publications, scan the job ads, browse on social networks and look for related business websites.

Don’t forget to talk to people – canvass you friends for their opinions, and speak to people in your target market to see whether they would pay for the sort of service or product you want to offer. Chat on business or industry forums, run an online poll – do whatever it takes to gather information about the potential of your idea. Every minute spent researching is an investment in your future.

Consider the University of Cape Town (Law@Work) Start and Manage a Small Business course. Contact Amy-Jane on 021 447 7565 or This email address is being protected from spambots. You need JavaScript enabled to view it. for more information. Alternatively visit www.getsmarter.co.za.

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Comments

  • Jill Fisher
    Jill Fisher Monday, 23 July 2012

    Thank you for your article and based on your advice, I must be ready to take that step...

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