As a result of changes in life and the challenges in the modern day economy, both worldwide and in the United States, many people are considering starting their own business in 2021. Recent studies show that startups are responsible for creating over 2 million jobs in the United States. But which Startup Business Ideas to Try on?
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While launching a startup is a challenging endeavour, many entrepreneurs are able to succeed in the rewarding world of startup industries. This success results from multiple factors related to both the person and the business. These factors combined determine what constitutes a favourable start up business idea.
What is a Start up?
Firstly it is important to note that not every new business is a startup. A startup only refers to the initial phase of a high growth business model. Startups generally have few employees and fast growth potential, and deliver a high return on investment. The products or services offered by startups generally address widespread gaps in the market and appeal to a wide variety of individuals.
A small business on the other hand tends to be more narrow in its focus, both in terms of target market and service or product provision, and is focused on longevity rather than fast pace growth. Therefore, for a startup to be successful, it must offer a generally appealing product or service that is not readily available elsewhere. Startups can be high risk and require an innovative attitude.
The Foundations of a Startup Idea
The idea behind a startup, in addition to being innovative and widely appealing, must be disruptive, i.e., it must change the industry in which the startup operates. The best startup ideas will satisfy a need, solve a problem or appeal to a niche community, or all three. One of the most reliable ways of formulating an idea is to look at real world examples.
How to Formulate your own Startup Idea
While a startup idea does need to be innovative and solve an existing problem, the best idea will not succeed if not implemented by the right person. In other words, startups succeed when there is symbiosis between the person and the idea. The best ideas are built on the relevant entrepreneur’s skills and experience. In fact, the most favourable startup ideas are a combination of three things:
- The interests and passions of the entrepreneur
- The entrepreneur’s capabilities and skills
- An attractive business opportunity.
Developing your Startup Idea
The best startup ideas are well researched. Once an idea is formulated, one must determine whether the industry landscape, including available funding and potential market size, is favourable to the idea. Is there an opportunity for rapid growth? The industry landscape will vary between states. Starting a Business in California is specifically recommended by the US Chamber of Commerce as California is seen as the gold standard for starting a small business. Considerations of where the startup will operate are therefore an important part of developing the idea.
Refining the Idea
Startup ideas are not only an alternative to existing solutions on the market, they go far beyond what existing products or services can provide. Successful startups do not simply treat problems in the market, they cure them altogether.
A successful idea does not necessarily need to be cheaper than existing products, however, if customers are to pay more than for existing products, then the startup’s idea needs to justify that expenditure. Successful startups therefore research potential consumer attitudes towards the idea prior to implementing, and refine the idea accordingly.
The Final Idea
Favourable startup ideas therefore result from all of the aforementioned considerations.
- Foundations: Does it solve a problem? Is it innovative? Is it widely appealing?
- Formulation: Do you have the capabilities to make the idea successful?
- Development: Is there opportunity in the relevant market for the idea?
- Refinement: Is there evidence that consumers will be willing to buy the product or service? How can the product or service be refined to better suit consumer preference?
Even with all of those steps, it can be difficult to identify and implement a successful idea. Some of the following areas or industries offer great opportunities for potential startups:
- App development
- Online coaching
- Artificial Intelligence Startups
- Coworking space
These are only a few examples. Information on how to launch your own startup and what kind of industries lead themselves to a successful startup can be found using online resources such as this resource by The Really Useful Information Company (TRUiC).
Is a Startup Right for You?
Coming up with an idea for a startup can be daunting. However, from bloggers to social media influencers, entrepreneurs of all lifestyles and backgrounds can formulate, develop and refine successful startup ideas and start successful startup businesses. Independent thinkers who are driven, curious and enthusiastic about their ideas have an opportunity to add to and disrupt the market as we know it.