Idea Generation Exercise

How to come up with a winning idea?

Many people dream of becoming entrepreneurs, but struggle to come up with a meaningful idea. Most often, the best ideas are simple solutions to common problems, and if you are able to spot the opportunity, you may just be the best person for the job.

We’re going to explore two methods of coming up with a good business idea. First – ideas from existing businesses. Second – ideas from your experience. Sound good? Let’s begin.

1) Ideas from existing businesses

Often, the easiest way to launch a new business is to adapt a proven business model to a new market, an old concept to a new location, or even moving a traditional service online. Take the time to research what is working elsewhere and whether it could work in your scenario. Consider the following for inspiration:

International Commerce Websites (What sells overseas, may sell locally?):

• Amazon.com – one of the world’s biggest e-commerce websites.
• Alibaba.com – one of the world’s biggest wholesale websites.
• Upwork – one of the world’s biggest freelance websites.

(Hint: Click on the links to explore the top selling items. Once you’re done, write down 1 or 2 ideas that inspired you).

International Accelerator Programmes (What ideas are the world’s leading investors backing?)

• Y Combinator – widely regarded as the best startup program in the world, the accelerator has launched over 2000 companies including Stripe, Airbnb and Dropbox.
• 500 Startups – one of the most active early-stage investment firms in the world, having backed more than 2400 companies in over 75 countries.

(Hint: Click on the links to explore the top selling items. Once you’re done, write down 1 or 2 ideas that inspired you).

International Review Websites (What overseas products are about to launch or have social proof?)

• ProductHunt – An American community-based website for discovering, reviewing and sharing new products.

(Hint: Click on the links to explore the top selling items. Once you’re done, write down 1 or 2 ideas that inspired you).

International Industry Recognition lists (Which companies are getting media attention?):

• Inc5000 – the annual list of the 5000 fastest growing private companies in America.

(Hint: Click on the links to explore the top selling items. Once you’re done, write down 1 or 2 ideas that inspired you).

Crowdfunding Websites (What businesses are customers are helping to fund?):

• Kickstarter – the most popular crowdfunding platform in the world, where people with creative product ideas pitch to raise funding.

(Hint: Click on the links to explore the top selling items. Once you’re done, write down 1 or 2 ideas that inspired you).

Competitions (What are the new ideas that people are pitching for funding?):

• Shark Tank – The American reality TV series in which aspiring entrepreneurs pitch their ideas to a panel of investors for funding.

(Hint: Click on the links to explore the top selling items. Once you’re done, write down 1 or 2 ideas that inspired you).

2) Ideas from your experience

Now, take the time reflect on what you know about a specific industry, or your experience as a customer. You should be able to identify a gap/opportunity in the market and your experience might make you the best person to solve the problem. Answer the following questions:

What business/industry do you have experience in, knowledge about, or want to create an idea for?

Example: Retail, Fashion, Food or Marketing. This domain experience positions you well to identify gaps, or opportunities.

What is/are the biggest need/s that the business/industry serves?

Example: A restaurant feeds people, but also meets their need for experience and social bonding. A fashion business clothes people, but also gives them affirmation.

Who is/are the current customer/s?

What type of person does the industry/business currently target? Who is buying? If you consider yourself a customer, try and define why you qualify as one. Example: examine your unique traits – age, ethnicity, job, spending habits, location e.t.c.

What is/are the biggest problem/s faced by current customers?

Do customers have too many options? Are they paying too much? Describe how current businesses fail to meet their need. Could solutions be easier to use through new technology?

Which customers are not being served?

Which customers might be interested in the product/service, but are lost because current businesses charge too much, or only operate in certain locations? Example: If an accounting firm only wants corporate clients and decides to charge a higher price, there is a gap created to serve smaller businesses.

How are the current solutions (products/services) sold, and why?

Do certain factors limit current solutions to physical locations, or forms? Could these products be offered digitally and sold online?

How are the current solutions marketed/promoted, and why?

Are current businesses still reliant on traditional ways of promoting their products (magazines, TV ads)?

How are the current solutions priced, and why?

What factors drive these prices (material costs, competition, the need to import, limited suppliers)? Could you lower the price?

What are the resources that current businesses depend on to function?

Do they need certain resources, and why is this the case? Could these be replaced with something of similar quality, but cheaper?

Who are the key partnerships in the industry, and why?

Think about the parties in the current supply chain – i.e. the network of businesses dependent on one another to deliver the product/service. Example: farmer – wholesaler – retailer – restaurant – UberEats – customer. Could new partners be added/removed?

You're all done!

Congratulations. By answering the above questions, you should have a solid foundation for coming up with a potential business idea. We recommend that you review your answers and as you do, you’ll likely identify gaps and opportunities. If you think that you’re on to something, return to the getlion app and try the “Idea Validation Test” next.

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