Every entrepreneurial journey starts with an idea—that spark that could transform into your dream business. Sometimes it’s the only thing standing between you and the life you want. But what if you’re stuck? Don’t worry. While great business ideas can strike unexpectedly, you can also learn how to generate them systematically.
This guide will walk you through ways to come up with business ideas, complete with brainstorming exercises and real examples from successful entrepreneurs. You’ll discover how to evaluate if your idea has profit potential (even if you’re starting with no money) and take a personality quiz for ideation tips that match your style.
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Key elements of a good business idea
Before diving into business names, registration paperwork, or the necessary business licenses, you need that perfect business idea. While there are countless types of business out there, the successful ones share some key ingredients.
Clear value proposition
Start with the most important question: What problem does this solve?
If you can’t answer that in a sentence or two, head back to the drawing board. Your product or service needs to help someone in a specific way. Maybe it saves them time, cuts their costs, or makes their life better. Remember—people don’t just buy products, they buy solutions to their problems.
Target market identification
Here’s the truth: you can’t sell to everyone, and trying will only leave you frustrated (and broke). Instead, figure out who needs your solution the most. Are they busy parents juggling work and family? Small business owners working late into the night? Fitness enthusiasts chasing their next goal?
The better you understand your target market’s daily life, challenges, and wishes, the easier it becomes to create something they’ll love.
Sustainable revenue model
Your idea might be brilliant, but can it make money? A sustainable revenue model means you’re building a real business, not just an expensive hobby. Think about how you’ll charge—maybe it’s subscriptions, one-time purchases, or different pricing tiers. Then ask yourself: Will people pay enough to cover your costs and leave you with a healthy profit?
Competitive advantage
What makes your idea special? Whether it’s a unique feature, amazing customer service, or prices that make people do a double-take, your competitive advantage is why someone chooses you over everyone else.
Take time to check out your competition. What are they doing right? Where are they dropping the ball? Position your business to fill those gaps they’re leaving wide open.
Scalability potential
A business that only works when you’re putting in 24/7 isn’t a business—it’s just another job. This is especially true if you’re starting a business while keeping your day job. Think about how you can grow without burning out. Can you automate parts of it? Could you expand to new markets or add services later? The best ideas have room to grow with you.
12 ways to come up with a successful business idea
- Find a problem to solve
- Tap into your interests
- Use your existing skills
- Give existing products a fresh spin
- Do your market homework
- Look for underserved markets
- Watch for emerging trends
- Get innovative
- Fire up your creativity with brainstorming
- Pay attention to daily annoyances
- Mine online goldmines
- Go straight to the source
Let’s be real: No business idea comes with a success guarantee. But if you run your ideas through the right checkpoints, ask the tough questions, and stay open to adapting along the way, you’ve got a solid shot at building something great—whatever success looks like to you.
Here are several proven ways to spark your next business idea:
1. Find a problem to solve
Many successful low-investment business ideas start with a simple problem that needs fixing.
Look at the frustrations in your life or the lives of people around you—they could inspire your next venture. Once you’ve found an interesting area or industry, dig into what’s bugging people about current products or services. Maybe you’ll improve something that exists, or maybe you’ll create something totally new.
Take Range Beauty founder Alicia Scott. She couldn’t find makeup that worked with her reactive skin. “I just couldn’t get with the makeup brands that were not only ignoring my skin tone but my skin conditions too,” she says. Her solution? Creating skin-friendly beauty products for a wide range of skin tones.
2. Tap into your interests
Some of the best business ideas grow from things you already love doing. Think about your hobbies, sports, crafts, or favorite subjects. When you start a business based around your passion, you’re more likely to stay motivated through all the ups and downs of entrepreneurship.
3. Use your existing skills
What are you naturally good at? What entrepreneurial traits do you already have? Your current skills could be the perfect foundation for a business. For example:
- Got creative chops? Think about businesses that let you work with your hands or use your eye for design.
- Tech-savvy? Consider how you could help others solve their technical problems.
- Good with people? There might be a service-based business in your future.
4. Give existing products a fresh spin
Here’s a secret: You don’t need to invent something entirely new. Sometimes the best businesses come from making everyday products or services better. Look at how Uber transformed taxis and Tinder reimagined dating.
Take Bartesian, for instance. Founder Ryan Close took the concept of a capsule coffee machine and applied it to cocktails. “I understood it was difficult to make great-tasting cocktails at home if you’re not a bartender,” he says. Instead of starting from scratch, he gave existing technology a creative twist.
5. Do your market homework
Already know roughly what industry you want to start your online business idea in? Great—now dig into the market for inspiration. You could:
- Chat with people who match your target customer
- Read industry reports and trade publications
- Follow industry influencers to understand what their audiences want
6. Look for underserved markets
Sometimes the best ideas come from spotting who’s being left out. Are you part of a niche online community whose needs aren’t being met? That could be your opportunity.
That’s exactly what Yelitsa Jean-Charles did when she noticed a huge gap in the toy industry for young Black girls. She turned that observation into Healthy Roots Dolls, a brand helping girls love their curly hair. As Yelitsa puts it, “When you’re ignored by the mainstream media, you have to become a problem solver.”
7. Watch for emerging trends
Want to spot the next big consumer trends? Keeping your eyes peeled for trending products? Social platforms like Pinterest and TikTok have dedicated trend pages that can spark fresh business ideas.
Pro tip: Check the search functions, too. Instagram shows trending keywords right below its search bar, while TikTok lets you filter by “Top” or “Hashtags” to see what’s gaining traction.
Just remember—by the time everyone’s talking about a trend, it might be on its way out. Try thinking sideways instead. That’s what Miguel Leal did with Somos. He and his co-founders looked at what was hot in restaurants and figured out how to bring those trends to packaged foods.
8. Get innovative
Sure, many successful businesses put a fresh spin on existing ideas. But there’s still plenty of room to create something totally new. If you’ve got an eye for design and spot a problem no one’s solved yet, why not develop a product prototype and test it with potential customers?
9. Fire up your creativity with brainstorming
Sometimes you need to give your brain a little push. Whether you’re working solo or with a group, try these proven brainstorming techniques:
- Classic brainstorming: Let the ideas flow freely—no filters. Call out thoughts and build on each other’s suggestions.
- Brainwriting: Like brainstorming, but quieter. Jot ideas on Post-its or use online tools like Miro, then discuss as a group.
- Storyboarding: Visualize ideas by sketching out different scenarios.
- Mind mapping: Start with your main idea in the center and branch out with related thoughts. Keep going—each branch can spark new connections.
10. Pay attention to daily annoyances
Some of the best business ideas come from life’s little frustrations. What bugs you every day? What makes you think, “There’s got to be a better way”?
If something’s driving you crazy, chances are you’re not alone. Maybe you can’t find decent lunch options near your office, or you’re tired of juggling multiple apps to organize your day. Don’t brush these thoughts aside—write them down. These everyday headaches often lead to brilliant business solutions.
11. Mine online gold mines
The internet is packed with business inspiration—you just need to know where to dig. People are constantly sharing their problems and questions in:
- Forums and groups like Reddit, Quora, or Facebook communities
- Keyword research tools that show what people are searching for online
- Trend-spotting sites like Google Trends or Answer the Public
You’re not looking to copy anyone’s idea here. Instead, use these insights to spot gaps where your unique take or expertise could really help people.
12. Go straight to the source
Sometimes the best way to figure out what people want is simple: Ask them.
Create a simple survey for friends, family, or potential customers. Keep it short and sweet—nobody wants to spend ages filling out forms. Ask about their biggest challenges or what they wish they could improve. Better yet, grab coffee with someone who fits your ideal customer profile. Their answers might surprise you and spark ideas you’d never considered.
7 ideation boosters for aspiring entrepreneurs
Ready to get those creative juices flowing? While good ideas can strike anytime, you can actually train your brain to generate more of them. Sure, you’ve heard that exercise, sleep, and staying hydrated help with everything—but taking care of your mental wellness really does boost confidence and motivation, helping those business ideas bloom.
Here are some simple but powerful ways to spark creativity and new business opportunities:
1. Break your routine
Getting stuck in the same daily pattern? Mix things up. Take a different route to work, eat lunch in the park instead of at your desk, or try something new on a Saturday night. While routines keep us productive, running on auto-pilot means you might miss the inspiration happening all around you.
2. Make space for your mind
It’s hard for fresh ideas to pop up when your brain is cluttered with other stuff. Carve out some proper self-care time—whether that’s swaying in a hammock or losing yourself in a hobby you love. Want to take it further? Try mindfulness. Research shows it helps with creative thinking, and there are tons of apps and podcasts to get you started.
3. Let your pen wander
Think of doodling as freestyle brainstorming. Just let your pen move across the page, filling it with whatever scribbles, words, or pictures come to mind. Don’t worry about your artistic skills—this is about letting your creativity flow, not creating a masterpiece.
4. Become a professional people-watcher
Look up from your phone and tune into what’s happening around you. Grab a coffee at a new café or park yourself on a bench downtown. Watch how people interact with their environment—you might spot problems begging for solutions.
5. Expand your circle
Fresh perspectives lead to fresh ideas. Join entrepreneur meetups where you can bounce thoughts around with other creative minds. Who knows? You might even meet your future business partner over coffee.
6. Feed your mind
Dive into books, podcasts or documentaries, or listen to music you’ve never heard before. Get inspired by other creators’ work. And don’t just stick to business content—sometimes the best ideas come from completely different fields. Even fiction can spark real-world business solutions.
7. Keep a thought catcher
Ever had a brilliant idea pop into your head during a dream or while riding your bike? Start keeping track of these sparks. They don’t need to be fully formed—just jot them down somewhere to explore later. If you’re not naturally a writer, try a journal with prompts or exercises to guide you, or dictate voice notes into your phone.
How to validate your business idea
Got a promising idea? Great! Now let’s make sure it has real potential in the market. Here are several ways to test your business idea before going all-in:
Test your rough drafts
Don’t wait for perfection—sometimes the best way to validate an idea is to put an early version out there. Create a prototype or beta version that lets potential customers interact with your concept. Their feedback will help you refine the final product, and you won’t waste money on large-scale manufacturing until you know you’re onto something good.
Check out the competition
Take a good look at who’s already doing something similar. Analyze your competitors: What are they doing well? Where are they falling short? Study their products, prices, marketing approaches, and how they get their stuff to customers. This research helps you spot gaps you can fill with your business, understand what customers expect in your industry, and build a stronger business plan.
Conduct SWOT analysis
SWOT analysis (strengths, weaknesses, opportunities, and threats) is a simple but powerful way to evaluate your idea from all angles. This framework helps you think through both internal factors (what you’re good at and what needs work) and external ones (market opportunities and potential risks) that could affect your success. Bonus: This analysis will come in handy for your business plan too.
Keep an eye on trends
Even if you didn’t find your idea through trend-spotting, understanding what’s hot in your industry is essential. Say you’re planning to launch a cosmetics brand—knowing current color trends could help shape your product line.
Check out Google Trends, industry publications, and social platforms like TikTok and Instagram to stay in the loop. Just remember that trends can shift quickly, so look for longer-term patterns rather than fleeting fads.
Get real feedback from real people
Don’t keep your idea to yourself. Share it with friends or, better yet, people who match your ideal customer profile. Try informal polls or surveys on social media to gauge interest.
Take it from Yelitsa of Healthy Roots Dolls: “I went directly to consumers,” she says about using crowdfunding to validate her idea. “I presented the concept to them and let them vote with their money and proved that there was demand.”
Look for gaps in your plan
While competitor analysis helps you spot market gaps, a gap analysis turns the spotlight on your own idea. It helps you see the distance between where your concept is now and where it needs to be to succeed.
Usually, businesses do this after they’re up and running, but you can use these same techniques to strengthen your idea before launch. Think of it as a reality check that helps you spot potential ideas early.
Ideation strategies for every personality type [QUIZ]
Everyone generates ideas differently. Maybe you thrive in group brainstorms, or perhaps you get your best ideas from art, nature, or books. Understanding your personality type can help you find the perfect way to spark those winning small business ideas.
Take our quiz: What kind of entrepreneur are you? Then come back here and find your Founder Sign below for tailored tips.
Business idea generation for Trailblazers
You’re an idea machine, Trailblazer! Your challenge isn’t coming up with ideas—it’s picking just one and making sure your excitement isn’t clouding your judgment. Group ideation sessions are perfect for you, as other perspectives can help balance your strong gut instincts.
Ideation techniques picked just for your personality type are:
- Tap into your community early. You tend to fall hard for your ideas, which can make it tough to hear feedback later.
- Try creative visual techniques like mood boarding, mind mapping, or storyboarding that let your creativity shine.
Business idea generation for Outsiders
Ideation can be tricky for you, Outsider, because you thrive on routine. Your carefully crafted bubble is great for productivity but can limit your inspiration. Breaking out of your comfort zone, even a little, can spark fresh ideas.
Get unstuck and open your mind to new ideas by trying these techniques, handpicked for you:
- Start with structured brainstorming—specific prompts and questions rather than open-ended sessions that might feel overwhelming.
- Take small steps outside your routine, like trying a new lunch spot or taking a different route to work.
Business idea generation for Mountaineers
If you’re a Mountaineer, you’ve already zeroed in on your big idea and you’re charging full steam ahead. No idea yet? You might feel a bit adrift—that’s because you’re at your best when you have a clear goal to chase.
Discover your true calling through these ideation techniques picked just for you:
- Gather your trusted circle—people with different backgrounds who aren’t afraid to challenge your thinking. Have casual idea sessions or organize more structured brainstorms.
- Push your boundaries. Travel, meet new people, try new experiences. Fresh perspectives often lead to breakthrough ideas.
Business idea generation for Firestarters
Ideas? You’ve got them in spades, Firestarter. In fact, you’re probably juggling several right now. You thrive on the energy of new possibilities, so don’t feel pressured to pick just one path.
Try these methods for gathering ideas, picked for your personality type:
- Connect with other idea people who spark friendly competition, but also seek out those who think differently. A good debate can strengthen your concepts.
- Don’t force yourself to choose just one idea. Test out your most promising ones and see which ones naturally rise to the top.
Business idea generation for Cartographers
Your eye for detail helps you craft rock-solid ideas, Cartographer. But sometimes you need to loosen up a bit—being too structured during ideation might mean missing out on those wild, creative concepts that could turn into something amazing.
Try these ideation strategies picked just for Cartographers like you:
- Try solo mind mapping—it combines creativity with the structure you love.
- Once you’ve got your idea, dive into the data. Use market research and free entrepreneur resources to fill any knowledge gaps and support your keen instincts.
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Coming up with a business idea FAQ
How can I protect my business idea so others don't steal it?
While you can have people sign non-disclosure agreements (NDAs) and file for patents or trademarks for specific innovations, here’s the truth: Execution matters more than the idea itself. Many successful businesses weren't first to market—they just did it better. Your best protection is moving quickly to establish your presence and build a strong brand.
Is $1,000 enough to start a business?
Absolutely! $1,000 can launch several types of businesses, especially if you focus on areas with low overhead costs. Consider selling online services or consulting, small-scale retail, freelancing, selling wholesale, or opening an online store. Service-based businesses where your skills are the main asset are particularly good options. The key is choosing a business model where you can test your concept without major upfront investments.
How do you come up with an idea to start a business?
Home business ideas are often inspired by the world around you. The best ideas often come from the sweet spot between what you’re good at and what you love doing. Think about your existing skills and interests, and consider the real-world problems or pain points you or people around you face regularly. Look for products or services that frustrate you—sometimes the simplest solutions make the best businesses. Use brainstorming exercises and stay alert to inspiration in your daily life.
How do you develop a good business idea?
Once you’ve got your business idea, it’s time to see if it has legs. Start by validating your concept through market research to gauge demand. Run online surveys with potential customers, study industry reports, and analyze market trends. Have real conversations with your target audience. Only after you’ve confirmed there’s real interest should you start turning your idea into a business.
How do you brainstorm a business idea?
Let your creativity flow freely during brainstorming—even “bad” ideas can lead to brilliant ones. Try different approaches, like brainwriting (silent brainstorming on paper), storyboarding (visualizing scenarios), or mind mapping (connecting related concepts). The golden rule of brainstorming? No editing allowed during the idea phase. Write down everything that comes to mind—you can sort through it all later.
