How Do You Find the Perfect Business Idea?

The answer to this question is that the perfect idea probably doesn't exist. Your aim should be to choose an idea that is practical and workable, given your skills and experience, and your long-term goals. It should also be an idea that fires your enthusiasm and something that you can really believe in!

Some new business people find it hard to settle on a single business idea because they are worried about missing out on new opportunities or narrowing their options too early on. But remember, even when you have started your business, it is possible to add new services or products, or even to begin a second or third business. You and your businesses will continue to grow and develop - so in selecting your first business idea you are not saying 'no' to other opportunities. However, to give your first business idea a really strong start you might need to put other ideas on hold for a while!

Inspiration for your new business may come from:

• inventing something new - some people are naturally good at finding original solutions to problems. Others come up with completely new ideas based on new technology or other developments. Sometimes people are driven to invent a solution when they are faced with a problem in their own life and realise there is no solution... yet.
• copying someone else's idea - this can be a great starting point. If an idea is working for one business there's a good chance it could work for yours too. However, this one needs to be handled with care. If the marketplace is already overcrowded, you will need to offer something really special to earn your share of customers.

"Sandra was considering opening her own hairdressing salon - other hairdressing businesses in her small town seemed to be doing very well, and she was an experience stylist with several years professional experience under her belt. However, once she began researching her market, she realised that there were six salons in a small town of perhaps 15,000 people. It also became clear to her that although a couple of the salons were doing very well, two of the others were really struggling. This was an overcrowded and highly competitive market. If she wanted to open her salon in her home town Sandra needed to decide how her business would be different. How would she stand out from the rest and attract customers?"

• spotting a gap in the market - this often happens by accident. Perhaps you look everywhere for something you need, only to realise that no one in your area is providing it.
• developing your own skills and interests - building on your own areas of expertise can be a great starting point, not least because you probably already understand the market and the needs of your potential customers quite well. Many people dream of earning a living doing something they love, and there is no reason why they shouldn't achieve this goal, given careful planning and hard work.

"Graham was a keen fly fisherman. He decided to start a business running fishing holidays to Iceland, a place he had visited several times himself, and where he had several useful contacts. The business was highly success and with three years he had expanded his fishing holiday business to cover Canada, Russia and Norway as well.

Graham's business catered to a small, specialised market. This is sometimes called niche marketing."

Business ideas may be found in the most unexpected places or in everyday situations. Ideas don't need to be wildly inventive or original to succeed:

"Often the simplest and most obvious ideas are the best. When I first started out, I picked up a yellow pages and flicked through to find out what everyone else was doing. I reasoned that if they were already doing it, that proved there was at least a market for it!"

Charlie Stevenson.