Good business ideas start with identifying a need that isn't currently being addressed in the marketplace.
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Coming up with good business ideas isn't that hard, as we try to show in this example.
For this particular business idea, the need in the market goes something like this.
For starters, humans need sleep. When they don't get sleep, it makes them grouchy. So, if they are having trouble sleeping, they are probably willing to pay $30 for a device that will help them sleep.
You wouldn't identify this need unless you have been through the experience of having a three-year old walk into your room at 4:00 AM and ask "Is it time to get up yet?"
For parents, that is a situation that sucks. You might be able to get the kid back to sleep, but then you can't fall asleep. End result? A grouchy day where you are not effective in your work and other life pursuits. If you can pay $30 to fix the problem you will, right?
So, the invention that fixes this problem is called a "No Time Clock" - as in "Buy This Clock and You Will Be Sleeping Soundly in No Time."
Young kids cannot read a digital clock that says 4:00 AM because they don't know their numbers. So, putting a clock in their room doesn't solve the problem of their waking up way before they should and knocking on your door.
The solution - the No Time Clock - recognizes that young kids do know their colors. Hence, the No Time Clock let's the parents set the child's wake up time just as you would on a normal alarm clock. But the No Time Clock doesn't have numbers - it only has colors.
If it's before wake up time, the front of the No Time Clock is red. If it's after wake up time, the front of the No Time Clock is green.
A three-year old gets the concept. If my clock is green, it's OK to wake up mommy and daddy. If it is red, I should go back to sleep.
Problem solved. If you sell it for $30, you can probably make $20 in profit. Sell 50,000 clocks and you've made your million dollars.
See how easy it is to think of a good business idea? Just think of a problem and then think of a clever way to solve that problem. If people are willing to pay for your solution and they will pay more than it costs you to deliver the solution, then you've come up with a good business idea.
Every so often, we will post more free business ideas like this one. If you can use them, great. We hope you make a ton of money off of our business ideas. Just send us a thank you note after you've made that million dollars!
We greatly appreciate any advice you can provide on this topic. Please contribute your insights on this topic so others can benefit.
What an excellent business idea - the colour clock. It's so simple yet so effective. Has this been done already? If not, then you may see one in stores soon!!! Only joking. I'm gonna get my thinking cap on right now!
I think coming up with business ideas is a thinking habit that you can develop. It doesn't come immediately, but if you continually ask your brain to come up with solutions to problems that are presented to you in every day life, business ideas will start coming to you naturally.
Yeah, seems like the trick is bringing it back to basics.
Can I use this business idea?
Matt, feel free. If you make money, pay it forward.
Brilliant!! I have some simple problem solving ideas all day long, i wonder sometimes if you would be a good business or would it be worth the hassle. I guess you never know until you try.
Thinking about becoming your own boss and making a million dollars is such an overwhelming thought that I forget how simple the first step should be. I could compare to a video game, or any process in general. As you advance in the game/process the next stage will be a little bit more challenging, but will be more prepared to face it than you were at first. Thanks for your post.
Sorry guys. It is already on the market since 2008. See http://www.americaninnovative.com/products/teachmetime.php
Masha, thanks for that link. Now, I know a good gift to buy for my nephew. I think we posted this article back in 2004 or 2005, so maybe this idea was original back then. In any case, lots of people come up with a good business idea at the same time. It's all about execution. People sometimes come up with business ideas that others have already brought to market. In many cases, you can still do fine if somebody else already had the business idea. Maybe their timing was off or you execute better. Last thing I'd add is that this article isn't about one idea -- it's just supposed to be illustrative on how to come up with good business ideas. Thanks!
simple business plan yet so feasible wouldn't have thought of that!!! but know that you proved it to be so simple and easy to come up with one i have loosened up and now the entrepreneur ideas are flowing into my head just when i was about to give up. thank God i found you