If you are new to an independent business, finding the right idea for a successful venture can be quite a problem. It is not made any easier by economic uncertainty, and when you read about companies that are household names struggling to survive, you could well be quite concerned about the wisdom of launching a new venture. But new ventures do survive and thrive, and many more will be needed to grow our economy in the years ahead.
• What kind of products and services you can provide.
• Make sure that the likely needs for these products and
services, either from individual customers (consumers) or from small firms,
local, governmental or other types of organizations.
Once you find the right combination of products,
services, and customers then you have the possibility of success in independent
businesses.
What skills do you
have that can form the basis of an independent business?
This is the most obvious
point for anyone considering independent business. You need to be able to offer
something that has a high standard of quality, and that demands some high level
of skill.
Can you see some opportunities from your existing work or
occupation?
Often, this happens. You
might be working for a business and become aware that it is not offering
something that its customers are asking for. This might allow you to set up your own specialized preparation, possibly with your
employer's assistance, but you could also 'go for it alone'. There could be
some legal issues to watch for here, so it may be important to have your
employer's consent.
Can you combine your skills with someone else?
You may see a business
opportunity that you do not have all the skills to cover, but you can do so if
you work in association with someone who has complementary skills. Some general
construction companies have been started by groups of specialist tradesmen
combining their skills to form one organization.
For example, a specialist
in human resources, recruitment could work closely with a specialist human
resource solicitor to provide a more comprehensive human resource service.
Can you turn a hobby into a successful business?
Skills do not have to be
work-related; they can come from a hobby or personal interest. Many gardening
services have started on this basis. One former civil servant now runs a
successful model engineering company, based on a hobby that he followed for
many years.
Other opportunities exist in sports and
leisure, such as fishing and hiking, travel, photography, and collecting ancient
things.
Could you run a home-based business?
Many people do home-based startup businesses, and this can be very
convenient for parents with young children. This used to be the preserve of
services such as bookkeeping, but with the development of online initiatives
such as eBay, home-business opportunities are opening up in all manner of ways.
Developments in IT, such as developing/designing apps have become
increasingly common as have kitchen table enterprises, such as producing
home-made bread, cakes, jams, and sweets.
What goods and services are needed locally by consumers?
You may be aware of 'gaps' in provision in your local
area. This may, in turn, offer you the chance
to start up by meeting that local need. However, it may
clash with some form of a new community
or social enterprise set up to meet the same need. One
town with a high proportion of elderly
inhabitants now has a fitness studio aimed at their
specific requirements. One horse owner
decided to build and sell transportable horse 'shelters',
to be used on existing sites for better
weather protection or moved to a new site entirely.
What goods and
services are needed by local businesses or organizations?
Potentially, these are various and numerous. For example,
are services such as packaging, storage
or transportation adequately covered? The same could
apply to legal matters, graphic or website
design, or accounting and bookkeeping for small firms.
Another example is a sandwich bar close
to a business park. It could be successful if none of the estate tenants
have catering facilities.
Are there local opportunities in leisure or tourism?
What generates tourism around where you live? Is it
beautiful countryside, heritage, cultural
events, sporting events, 'active leisure', food or
crafts, business exhibitions, meetings, etc? There
may be opportunities in cities as well as in the more 'traditional'
tourism areas. Discuss your ideas
with your relevant regional tourist board, as they will
have local know-how and expertise. The
tourism 'supply chain' can be very varied and extensive, and there are lots
of opportunities.
Can you supply something that is currently being imported?
'Imported' in this case means brought in from outside of
your local area, as well as imported from
abroad. One example is a traditional blacksmith who has a
very successful trailer repair business,
previously not available within 50 miles of his workshop.
A specialist in maintaining fans and
ventilation systems could service many local hotels,
instead of a big national company working
from a regional office. A local fish and game supplier
might offer a fresher, more personal service
than a regionally based supplier.
Can you take advantage of new government initiatives?
If the government decides to introduce something into
law, small firms, in particular, need to
bring in outside specialists to make sure they comply
with new regulations. This has opened up
opportunities for health & safety and employment specialists
(among many others). This can also
apply to consumers. How many homeowners have moles
ruined their lawns? New laws dictate
that people can no longer poison moles, so pest
controllers have seen their mole-catching orders
rise substantially.
Can you see an innovative solution to a problem?
Recently, a national newspaper featured a group of
students who had started a business
designing food packs for single people, which cut back on
waste. Can you see an opportunity to
make something more 'user-friendly', or re-design it to
be more easily handled, safer, attractive or appealing?
Are there
opportunities thrown up by research, particularly at local universities?
Research at a university can often identify some unusual
or innovative ways to solve a problem.
Can you take advantage of developments in technology?
Have you invented something, or can
you make improvements to an existing product? Can you get
the backing of the university itself,
in the form of space for your business, ongoing technological support or
translation services?
Could you sell it to friends and relatives?
Party plan sales agents (often known as sales
consultants) sell goods and services on a 'direct
selling' or face-to-face basis at parties organized
specifically for this purpose, often hosted by the
friends or relatives of the agent. Depending on the type
of party plan scheme they are involved
in, agents typically earn commission on sales, or
purchase their stock at a discount before selling
it at the full retail price to make a profit. Some of the
best-known brands currently sold in this way
include Ann Summers, Avon, The Body Shop at Home and The Pampered Chef.
Can you take advantage of new fashion trends?
Fashion is a fast-moving field, but because it is so
unpredictable, it is always providing new
opportunities to those who really understand the fashion
market. Your opportunity to break into
this market could be a result of someone falling
'behind the trend'. However, don't make the
same mistake yourself. You do need to keep your fashion products relevant.
Can you provide
'natural' or 'eco-friendly' products, or improve something to make it more
environmentally friendly?
There are all sorts of new building products being used
by the construction trade, for example,
which are more 'eco-friendly' than traditional products?
The same can apply to other types of
business, such as food, textiles, and furniture.
Specialist recycling is in high demand, particularly
as a product made from recycled materials will often
appeal to an increasingly environmentally
aware public.
Is someone retiring,
and can you fill the gap that they will leave?
If a local trader or business owner is planning to
retire, and they do not have anyone to whom
they can pass the business, there could be an opportunity
to create a new venture that serves
many of the same customers. This can offer the chance to
'update' the business, and generate
some local publicity.
Can you teach something more swiftly or effectively?
A lot of teaching/training is in the hands of colleges or
universities, who may not be very flexible
in service delivery. At the same time, there is an
increasing need for short, technical training
inputs, particularly in the IT field. Some of the
national bookkeeping system suppliers use
freelance specialist trainers, which could open up a combined training
opportunity (see point 18).
Can you combine products or services into a package?
This can work on the grounds of convenience. British Gas
do not just supply gas and gas
servicing, but can also service electrical fittings,
drainage, and plumbing - all from one supplier.
Dog walking can be combined with general pet-sitting, a
'to-the-vet' transportation service, and
even holiday care. Several art galleries offer framing
services or frame restoration. One local milk
round also offers a mobile farm shop service.
Can you 'piggyback'
your idea on to an existing business offer?
There are many examples of opportunities to do this,
provided that the existing business is
willing to accommodate you, and your products/services
complement their current provision.
For instance, a garden center might be seeking a café/bistro
where customers can relax. The
café provides extra appeal to their customers, and if
there is no one among the center staff with
catering experience, they might well offer this
opportunity to a tenant business. This sort of idea
can work in a wide variety of business sectors.
Can you create
something that is 'multicultural'?
Something is appealing about foreign products,
particularly to educated and well-traveled
consumers. This can apply to food products and
restaurants, pottery, furniture, art, glassware,
ceramics, jewelry, fabrics and clothing, and probably a
few other things as well. The cross-cultural
aspect comes from using UK-sourced materials in a style
or fashion originating elsewhere in the world. One highly successful producer
of jams, chutneys and pickles sources their ideas
worldwide and the majority of their ingredients UK-wide.
Their products are on sale in Harrods!
Some general tips on
generating ideas:
·
Do as much
background research as you can. This does not have to be expensive, as your
·
local business
reference library may provide a wealth of information about the business idea
·
you are
considering.
·
Do check the full
extent of the immediate competition for your idea. Some of it could be
·
hidden away,
particularly if it is part of the 'informal economy'.
·
Do understand who
your potential customers could be, and why they would buy the
·
products/services
relating to your idea.
·
Don't start
without checking on all the legal issues. Some of the examples mentioned need
·
either licensing
to operate or you must have certain qualifications to provide some
·
services. If in
doubt, your local Trading Standards office can provide advice.
Finally: Change =
business opportunity, even during a recession!
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