The business idea you just came up with...ask the question..."do we really need one more?" For example, "Do we need another Organic Juice Bar in LA?" The answer is..."no."
"But my juice bar has organic ginger root from the ancient stone steps of the Bhutanese temple of the praying tiger and..." Stop right there. Like I said, we don't need another juice bar. Same goes for yoga studios...
When that light bulb goes off in your head, walk yourself through a S.W.O.T. analysis and if you don't know what that is...it means identifying your Strengths, Weaknesses, Opportunities, and Threats. This will help ask and answer questions like..."What additional value can I add to an existing service or product?" "Can I offer my service or product at a cost that is worthwhile to me?" "What are competitors doing that I could do better?"
If you're creating a product use "google patents." It's a great tool to identify like kind products you may think you have invented.
Let's take a look at an example of a S.W.O.T. Analysis. Jimmy the Entrepreneur has been in the entertainment industry for close to a decade. Jimmy owns three cats and by no coincidence has been single for three years. One day upon changing Mr. Whiskerson's litter box he says..."I'm great with cats, I'm going to start a "Kitty Talent Agency." Well just wait one minute there, Jimmy! Before we jump into this brilliant kitty idea let's build out a S.W.O.T. analysis.
Jimmy's S.W.O.T Analysis is very rudimentary and your S.W.O.T Analysis will really dig into the details including market size, potential capture, and margin analysis. This exercise will be the first steps in determining whether this is a worthwhile idea as well as a tool to show investors you've done your research.