How to Find a Million Dollar Business Idea: Actionable Guide to Coming Up With a Rock-Solid Business Idea

Copyright © 2015 Entrepreneurial Insights

www.entrepreneurial-insights.com

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher.

International Standard Book Number (ISBN): 9781483556765

Table of Content

Chapter 1: INTRODUCTION

Chapter 2: GET INTO THE STARTUP ECOSYSTEM

Chapter 3: TECHNIQUES FOR COMING UP WITH GREAT BUSINESS IDEAS

Chapter 4: MAKE SURE YOU THINK ABOUT YOUR RESTRICTIONS

Chapter 5: ANALYZE IDEAS WITH BUSINESS MODEL CANVAS

Chapter 6: TOP BUSINESS IDEAS TO CHOOSE FROM

Chapter 1: DECIDE WHETHER YOU REALLY WANT TO START A COMPANY

Before delving deep into the topic of finding a million dollar idea, it is important to understand whether one has the right entrepreneurial mindset and the correct expectation of what an entrepreneurial life entails. There is often a tendency to forget the hard work needed to succeed when one ventures out on their own and instead, the focus turns only to the freedom of being one’s own boss.

Some key ways in which being an employee and being an entrepreneur differ from each other are highlighted on the following pages.

Differences between Being an Employee and an Entrepreneur

• The Matter of Pay

A key difference between an entrepreneur and an employee is how they get paid. An employee is paid to work effectively in a particular role and capacity. In the event that he is no longer able to deliver effectively in this role, his manager is responsible and accountable for his performance. On the other hand, an entrepreneur is paid for the results that they can bring in. So if a product or service is being sold, there is no payday until a purchase is made. The accountability of the entire process and result lies with the entrepreneur himself.

• The Tolerance of Risk

There is substantially more individual risk for an entrepreneur than for an employee who is part of an organization. The employee has to come in to work and get paid for performing effectively without the ultimate, direct responsibility of the fate of the end product. If the product fails to sell for any reason, or sells really well, it is not the direct concern of one employee. On the other hand, an entrepreneur assumes the full risk of their product or service and works under the assumption that people will buy what is being sold. If the product is slow to sell, then the entrepreneur is responsible for figuring out a course of action to speed up sales and find alternate sources of revenue in the meantime.

• The Approach to Failure

As an employee, failure to achieve a certain target is almost always seen as a failure, by both the employee and his manager. A good entrepreneur will expect failure and see it is as a way to learn and grow in a better direction. A failure at any stage is seen as a point of correction and no failure is taken personally. When taken in this positive light, failure becomes an opportunity to rethink the business process.

• The Approach to Problems

An entrepreneur will always look for a solution when faced with a problem instead of just fixing the problem as it happens. The entrepreneur knows that the solution needs to be found and this needs to be a long term fix to ensure that no such issue arises again. The key difference often is that an employee will fix a problem in their domain and may only highlight that a problem exists beyond what they consider their responsibility. On the other hand, an entrepreneur will consider all problems to be within his domain.

• The Approach to Knowledge

An employee will strive to gather all knowledge about their limited area of responsibility. An entrepreneur will strive in the opposite direction to make sure that they know something about everything in their direct value chain and anything that directly or indirectly affects this chain. The entrepreneur will develop their knowledge about the business environment within which they operate and how everything connects and works together. This big picture view is a key to success in developing big successful ideas.

• The Approach to Responsibility

A good entrepreneur knows that there is no space to blame or complain in both personal and professional environments. An entrepreneur’s first instinct will not be to say it’s not my fault. Instead of hiding behind excuses or justifications, the entrepreneur will step up and make things happens by taking responsibility and initiative.

• The Approach to Money

An employee is forever focused on making enough money. The key difference in an entrepreneurial mindset is that the aim is not to make a lot of money, but instead to create long term wealth. This may sound like a mere play on words, but in terms of mindset, it sets the entrepreneur free of the daily preoccupation with a paycheck to set sights instead on the big actions needed for forward thinking and long term success.

• Resource vs. Opportunity

When a person who thinks more like an employee thinks up a potential million dollar idea, they are usually focused on the resources they will need or will not be able to gather to make this idea a reality. On the other hand, a person who thinks more entrepreneurially will only see the opportunity in a situation and will try to capitalize on it. Again, this may seem to be the same thing to an undiscerning eye, but this essential difference in the approach to a situation is what separates the thinkers from the doers. Saying, I don’t have the resources to afford this will turn off the mind, while asking, How can I get the resources to afford this? will encourage the mind to open up and begin thinking creatively.

• Determination

A positive entrepreneurial mindset includes a healthy dose of determination. This is beyond merely being strong and persistent, with a keen focus on strategic preparedness for any battles that lie ahead. This determination allows the entrepreneur to be determined in their decisions and to be ready to put in all the hard work that is needed to reach success.

• Building Relationships

An entrepreneur understands that a key to successful businesses is solid relationships. Therefore, an entrepreneur will devote time and effort to building up his network and relationships and also put in the long term effort to sustain these relationships.

• Backup Plans

An entrepreneur will step into the arena without a safety net and without a backup plan. A successful entrepreneur will never think of going back to being employed as a viable option. Entrepreneurs believe that they exist to create and influence others. With this mindset, going back to working as an employee is never an option.

WHAT DRIVES ENTREPRENEURS

Despite having an entrepreneurial mindset, some people may discover, often too late, that the entrepreneurial life is not for them. There are mythical ideas about owning one’s own business that often mislead people into making decisions that they may regret later. Being one’s own boss means being more disciplined and there is no way to make quick money. So what makes successful entrepreneurs keep doing what they do despite the difficulties? Some motivating factors are given below and surprisingly, money is not at the top of the list.

• Opportunity

Entrepreneurs see an opportunity that leads to ideas and are often deeply motivated by doing great work.

• Autonomy

Most entrepreneurs cannot imagine the daily grind of a regular job and a career that may not be fulfilling. The fear of this routine and the ability to make their own decisions is what motivates them.

• Freedom

Similar to autonomy, entrepreneurs love the freedom to call the shots and be the drivers of their own destiny.

• Impact

Entrepreneurs are driven by the fact that their actions and decisions have a direct impact on the entire business.

• Change

Some entrepreneurs are driven by the change they can bring about in the lives of their customers and their industry.

• Legacy

A personal legacy can be a great source of motivation for many entrepreneurs.

• Accomplishment

The sense of accomplishment that comes with knowing that they are doing what they love every day and accomplishing their goals is often a great driver for entrepreneurs.

Chapter 2: GET INTO THE STARTUP ECOSYSTEM

Once you have made up your mind about getting into business for yourself with the right entrepreneurial mindset, it is time to understand the dynamics of the startup environment or the startup ecosystem.

WHAT IS THE STARTUP ECOSYSTEM?

The companies and people who are involved in startups at various stages of their lifecycle as well as companies that support the growth of new startups and support existing ones make up the startup ecosystem. This ecosystem is a combination of the physical and the virtual environments.

The startup ecosystem is impacted by factors internal to it as well as those from the outside. The outside factors may end up driving internal factors at many points in time and include issues such as the financial climate, disruptions in the market and any other significant changes.

Categories of Organizations within the Startup Ecosystem

Many different categories of institutions and organizations make up the startup ecosystem. These include universities, startup incubators, co-working spaces, startup accelerators, business service providers such as lawyers and accountants, event organizers, business model evaluators, investor networks, angel investors, venture capitalists, crowdfunding platforms, startup blogs, social media and other facilitators. Apart from specific organizations, resources are also an important part of the ecosystem. These resources may include skills, time and money.

Getting Familiar with the Startup Ecosystem

In today’s world, the easiest way to become familiar with anything is to turn to the internet. A veritable repository of information, analysis and feedback, it can be a great channel to get basic information and connect with the right people. There are thousands of blogs and websites run by people within startup ecosystems that are dedicated to the area and give the most updated and relevant information about new businesses and trends. A regular perusal of some of these may be enough to keep a new entrepreneur informed on current market trends and product innovations as well as input on how to build a company from scratch. Some of these blogs and websites are listed below.

Inspirational Blogs and Websites for New Business Owners

1.  Virgin Entrepreneur

The dynamic company Virgin has a comprehensive blog with topics relating to entrepreneurship. The blog aims to give Insight, Advice and Inspiration. The blog features a mix of news stories and posts to help entrepreneurs.

2.  Ideaswatch

This site offers people an opportunity to post their ideas for new businesses, products and services and discuss them with other people from around the world. These discussions can then lead to collaborations and alliances to work on the ideas presented.

3.  Onstartups

A site for entrepreneurs, onstartups was started by an entrepreneur to share his passion with others. Focusing primarily on software startups, the site is a place to analyze how startups succeed.

4.  Smartpassiveincome

This website was started by Pat, who got laid off from his job. Since then, he set up a successful online business and uses this blog to share his successes and his failures with others as a guide.

5.  AVC

AVC is run by a venture capitalist who shares his insights on startups, small businesses and new innovations.

6.  Bothsidesofthetable

A well categorized blog that explores various topics of interest for entrepreneurs and startups.

7.  Small Business Trends

A popular online publication, the website has posts for business owners, entrepreneurs and other people in a startup ecosystem.

8.  Blogtrepreneur

This website is run by two serial entrepreneurs, investors and mentors. They act as consultants for small businesses. The blog features lots of how to guides, resources and tools as well as reviews.

9.  Venture Village

This website reports on digital innovation in Europe and the most promising startup hubs around the continent. Profiles and product reviews can be found on the site.

10.  VentureBeat

The website is source of news and analysis regarding technology innovation for entrepreneurs, executives and technology aficionados. The websites aims to both inform and inspire.

11.  Daily Business Dose

The blog provides daily business tips for entrepreneurs and businesses.

12.  CEO Blog Nation

This is a community of blogs for entrepreneurs and business owners.

13.  Entreprenuerdex

This website is a resource for articles, blogs and discussion relating to different areas of interest for an entrepreneur. Topics include how to be an entrepreneur, how to launch a startup, inspiration for entrepreneurs and how to raise money.

14.  FinSMEs

An award winning blog, FinSMEs provides information related to funding deals happening around the world. The information is reliable and trustworthy and can provide relevant information to young entrepreneurs, investors, journalists, analysts and bloggers.

15.  Late Blooming Entrepreneurs

This blog features insights from and about entrepreneurs who got their start after 40.

16.  Founding Moms

This blog is a resource focused on entrepreneurs who are mothers. The website acts as a base for offline meetings as well as an online resource for these women to exchange ideas, connect with and learn from each other.

17.  Savor the Success

This is a membership based network for women entrepreneurs. As a member, one can get PR opportunities, connect with the community and network.

18.  Fred Destin

Run by an investor, this blog offers insight into the world of funding and investing.

19.  Jason Ball

A venture capitalist and director at Qualcomm Ventures, Jason writes entrepreneurial advice in an easy to understand manner.

20.  A Personal View on Venture Capital

The name of this blog is self-explanatory, with news and insight into the world of venture financing.

21.  The Barefoot VC

This blog