Creativity is key for entrepreneurs. Successful entrepreneurs see what others don’t. But how do entrepreneurs come up with good ideas?
Opportunity identification is central to entrepreneurship. The first step for any entrepreneur is to identify a good idea. This involves the creative pursuit of ideas and the innovation process. The search for good ideas is never easy, however opportunity recognition can lead to both personal and societal wealth.
Entrepreneurs turn problems into opportunities. They seek out or create opportunities to fill the needs and wants of the consumers. Creative thinking and systematic analysis measure success. A successful entrepreneur is able to analyze demand and solve problem with creativity and innovation.
There are several key questions that entrepreneurs ask themselves to come up with ideas:
What is the problem/market failure?
Whom does it affect?
How does it affect them?
What costs are involved?
Can it be solved?
Would the market pay for a solution?
Entrepreneurs tailor their product/idea to the answers to these questions to ensure the best chance of selling.
Often, the best ideas come from customers or users. Many entrepreneurs identify problems from personal experience. Chances are, if an individual has a problem, others will too. Then, an entrepreneur in this situation would determine if there is a plausible solution.
Trends help entrepreneurs develop products that will sell by determining what is popular at the time. Societal trends such as the increased growth of health and fitness will show an increase of sales in yoga mats, for example. Technology is a fairly new trend. Almost everyone has a smart phone, making smart phone cases very profitable. The constant change in the market is what provides opportunities to entrepreneurs. Familiarity with the market leads to business possibilities.
This process by which ideas and opportunities are converted into marketable solutions requires innovation and creativity. Any successful entrepreneur has mastered both.
What have you done to identify the particular need that you are solving with your startup? We’d love to hear it. Let’s have a conversation – give us a shout on Twitter at @Designlico !