Come Up With a Business Idea

Eureka! Coming up with a business idea is the first step toward becoming a startup founder. Your task is to figure out whether that idea can be turned into a scalable business.

 

How to Come Up With a Business Idea?

A startup idea often emerges when you notice a problem that could be solved in a better way than existing solutions. If you’re still searching for your own business idea, keep your eyes open for problems in your daily life, hobbies, and work environment.

 

What Makes a Good Business Idea?

The problem you’ve spotted should be significant enough that people are willing to pay for a product that solves it. And we’re not talking about just a handful of paying customers—the problem should affect so many people or businesses that the idea has the potential to grow into a million-euro business.

 

How Is a Startup Idea Different From a Traditional Business Idea?

Startups and traditional businesses differ in key ways. A startup is an organization creating a new product or service under conditions of extreme uncertainty. Size doesn’t matter—this definition includes both one-person garage ventures and large corporations.

A traditional business operates in a far less uncertain environment, building on an existing and proven business model. Its goal is to capture a share of the existing demand in a local market. Examples include flea markets, hair salons, and food delivery services.

Another hallmark of a startup idea is the pursuit of rapid scalability—the ability to grow significantly without costs increasing at the same rate. This requires both a product or service that can be easily replicated and a scalable business model. Once these conditions are met, startups typically seek funding from venture capitalists to accelerate growth.

 

Multi-Page Business Plans Are for Traditional Companies – Not Startups

If you’re opening a hair salon, it makes sense to create a detailed business plan and financial forecast. For a startup, this is nearly impossible at the early stage because of the uncertainty surrounding the idea. At first, your business’s viability is little more than guesswork.

You should expect your idea to change many times from your initial concept. This means you’d need to keep rewriting your business plan, which isn’t the best use of your time.

 

How to Determine If Your Idea Can Become a Scalable Company

Your most important job as a startup founder is to find out as quickly as possible whether your idea can be turned into a scalable business. This requires testing ideas to find a viable business model.

Only once you can prove the business can be sustainably scaled will investors be interested in your company.

This guide will walk you through how to evaluate your idea’s potential and build a scalable company—step by step. Each stage comes with a checkpoint you must meet before moving to the next. It’s a long journey—reaching the scaling stage typically takes about two years.

Are you ready to find out if your business idea has what it takes to succeed?