There are over 300 million Americans, and many of them have had an idea for what they think could make a great business. Few ever actually give it a shot, and fewer still are successful.
So what actually does make for a great business idea?
This characteristic of a great business idea is often overlooked. Many businesses are a dime a dozen. Ice cream shops, daycares, pet groomers, bakeries, retail shops, etc., are on every corner. If your idea is something like this, the best way to make it unique is through the outstanding service, top notch facilities, and stellar product you offer that is far above the rest. Even better however, is to put a totally new twist on something. Consider Planned Migration, a company that moves zoo animals from one location to another, or the local 15-year-old recently noticed slowly boating up and down the beach at a local lake selling ice cream on a hot summer’s day.
Demand/ Skill Set
Of course neither of those ideas would have worked had their not been a demand for the product or service. There was no ice cream truck that came to the beach, and many zoos desire or even require the one-on-one service that Planned Migration offers that larger transportation companies cannot. Where demand meets skill set, great business ideas are born. These entrepreneurs had the skills needed to carry out their ideas. Planned Migration was started by a former zoo keeper, while the ice cream kid had a boating license and access to a boat.
The Price vs. Profit Balance
A great business balances profit and price. It is imperative to make the product or service affordable to customers while still making a profit. The ice cream on the lake was likely purchased at a cost well below the $3 to $4 price, and that made it both affordable to customers and profitable to the business owner. If he had been unable to find inventory at a low price, it may not have been profitable because he would have had to charge too much for the ice cream to cover costs, such as boat gas. People would not have been able to afford it, and the business would have sunk!
There are many, many variables that go into making a business successful, but having a great idea to start with is a must. These are not the only things that make a great idea, but they are likely the top three. If you have a great idea, Biz2Credit can help you get the financing you need, whether it be business lines of credit, startup loans, or working capital, our network of over 1,300 lenders is here to help.