The Best Business Ideas For The New Rules Of Business

A reader asks:

How can I go about finding the best business ideas? Especially as most business ideas out there don’t fit the new rules of business.

The idea that the rules of business have changed isn’t new, it’s a popular story that the business press just loves to peddle out every few years. The reality however is far more mundane, today the rules of business remain the same as the rules of business yesterday, and the day before yesterday and the day before that and so on. In fact the basic rule for business success has never changed:

You need to give people what they want, at a price they can afford, and you need to deliver it at a lower cost than you sell it for.

At the heart of it business is that simple.

So what about the best business ideas?

Well the best business ideas are those that satisfy that simple rule. If you’ve not sure if your business idea does that ask yourself the following questions:

1. Is there an easily identifiable group of people that want your product? As always you can substitute product for service and vice versa.
2. How much will it cost you to provide the product?
3. How much will you have sell your product for in order to cover your costs and make sufficient profit to provide a reasonable return on investment for the owner of the business?
4. Can the people that want your product afford to pay that price?

If you can honestly answer yes to questions one and four then you have a viable business idea. If you can also explain why a customer would buy from you and not a competitor then you have a good business idea. If you reach that stage and you’re passionate about the business idea then you have probably found the best business idea for you and I explained in The Best Business Ideas the best idea for you will depend on who you are and the skills, experience and contacts that you have.

But what are the best new business ideas?

I wouldn’t worry about trying to identify the best new business ideas. The reality is that most new business ideas fail. It’s a much better investment of your time, energy and cash to pursue a proven business idea rather than a new one.

How about the best small business ideas?

It rather depends on your definition of a small business. However I’d suggest the best small business ideas are those that are proven for example, most of what you’ll find on the average small town high street – the cafe/coffee shop, sandwich bar, clothes shop, etc. Alternately if you have (or can acquire) the relevant skills then many of the service businesses such as consulting, web design, hair dressing, catering, etc.

Asking John:
Do you have a business question you would like me to answer? If so you can Ask John or or you can ask on the forums where you’ll get both my input and that of your fellow entrepreneurs.

 Email This Post

• 1

  hi john,

  Is there any business out there that no serious entrepreneur would touch with a barge pole?

  Sahail Ashraf on June 24th, 2009
• 2

  Off the top of my head I can’t think of any, but I’m sure there’s been several on Dragon’s Den.

  John on June 24th, 2009
• 3

  Hi again John,

  I do think that there has to be some scope for innovation.

  Taking on established products makes you a small fish in a big pond. Good for starters, like you say, but pretty soon, you either improve upon or innovate.

  Wouldn’t you (all) agree?

  Sahail Ashraf on June 29th, 2009
• 4

  Sal,

  Yes I’d agree in order to survive all businesses MUST innovate, but innovation takes many forms. For example Joseph Schumpeter noted several types of entrepreneurial innovation:

  1. The introduction of a new good — that is one with which consumers are not yet familiar — or of a new quality of a good.
  2. The introduction of a new method of production, which need by no means be founded upon a discovery scientifically new, and can also exist in a new way of handling a commodity commercially.
  3. The opening of a new market, that is a market into which the particular branch of manufacture of the country in question has not previously entered, whether or not this market has existed before.
  4. The conquest of a new source of supply of raw materials or half-manufactured goods, again irrespective of whether this source already exists or whether it has first to be created.
  5. The carrying out of the new organization of any industry, like the creation of a monopoly position (for example through trustification) or the breaking up of a monopoly position

  Note that innovation is distinct from invention or revolution.

  John on June 30th, 2009
• 5

  Firstly, don’t you just love the press, ‘new rules for business’

  It’s all good stuff, but why is it that so many people always forget, maybe not the first rule for small business, but it should be pretty high on the list, do something you know and love.

  Over the last 22 years as an accountant and business consultant I have come across more people than I care to remember who have never taken any advice before launching a venture into the unknown, going into an industry of which they have no prior experience.

  Next, as rightly stated, research, is there a market and what will they pay, all basics of business that seem to be forgotten all to often, and much to would be entrepreneurs detriment!

  Another great benefit of this day and age is the internet, never before has there been such a chance to operate a business from your kitchen table that can literally go global, with a shop front that is virtual and open 24/7.

  One thing I would say to anyone thinking about going it alone, know your market place!

  Jason Holden on July 1st, 2009
• 6

  Whilst “do something you know and love” might not be the first rule of small business it certainly deserves a place in the top 3.

  A shame the business press doesn’t mention it more!

  John on July 1st, 2009
• 7

  While I am on my ‘little soap box’, another thing that is not mentioned enough (if at all) ensure you have enough money to carry you through in your personal life, just because you have started a new venture does not change mortgage payments and bills.

  I know a lot can’t save enough for 12 to 18 months like this, and this is where I think it should be made clear that you can start a business in your spare time, evenings and weekends, especially if it is internet based, there are enough virtual assistants and virtual office address around these days to make this a very viable route.

  In fact, this is the way I started my business, originally about 10 years ago it was extra money, then I decided to grow it and eventually I took the full-time plunge a little over 5 years ago, with a little money to live off while things grew, so unlike many who dish out advice, I really can say I have been there and bought the T-Shirt (rare for an accountant I would wager)

  Jason Holden on July 2nd, 2009