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Why new business ideas happen
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Every business starts with an idea. Ideas appear when the world changes or when someone spots a way to do something better.
Where ideas come from
Changes in technology: new products such as apps and electric scooters.
Changes in what consumers want: for example more demand for plant-based food.
Products becoming obsolete: old products are replaced, leaving gaps.
Changes in what consumers want: for example more demand for plant-based food.
Products becoming obsolete: old products are replaced, leaving gaps.
Two kinds of idea
Original ideas: completely new products or services.
Adapting existing ideas: improving or changing something that already exists, such as a new flavour or a faster delivery service.
Adapting existing ideas: improving or changing something that already exists, such as a new flavour or a faster delivery service.
Adding value
Businesses add value so customers will pay more than the cost of the inputs.
Ways to add value: convenience, branding, quality, design and a unique selling point (USP).
Ways to add value: convenience, branding, quality, design and a unique selling point (USP).
A café sells coffee in reusable cups with free refills for members. How does it add value?
- Convenience: members get quick refills.
- A USP: free refills are unusual.
- Branding: the reusable cup builds an eco-friendly image.
Answer: Through convenience, a USP and branding.
New ideas come from changes in technology, changes in consumer wants and obsolete products. Ideas can be original or adapted. Value is added by convenience, branding, quality, design and a USP.
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