To grow our businesses, we don't need more money; we need better ideas. Stop worrying about new investors and long business plans, and focus your attention on what really matters. If you want your business to thrive, you not only need better ideas right now, but also the road ahead. This fact shouldn't scare you, but on the contrary, it should make you realize the importance of the idea process, and it should also excite you for what the future holds.
En relationship: 3 steps to go from idea to entrepreneur
So here are the five most important steps to creating better business ideas.
1. Research.
José Scheuer, professor of business and marketing at the London School of Business and Finance, says market research is necessary because competition is tougher than ever. In a recent interview, Scheuer explains that small businesses are competing in a much larger arena than ever before, largely due to the growth of e-commerce. And with the growth of e-commerce, other businesses large and small, it is often found that competitors have greater bargaining power to source products and sell them at cheaper prices. Don't miss out on the competitive edge that search gives you – search is what separates you.
What are other members of your company already doing? Avoid these ideas and find your own niche. The research will also tell you where you need to be now and in the future.
Who can you turn to to improve you and your business? Look for those in your field who are doing it right and learn from them.
How do they work, what good things can you get out of their work, and how can you improve your business?
No matter where you need help in your business, researching companies that are doing it right (and not so well) will help you improve. You can always learn from the triumphs and mistakes of other companies. It amazes me how simple this concept is, yet people repeatedly miss it. These are the same business owners who ask themselves, Why aren't we efficient? when there are tons of resources available to help them. You need research to improve yourself so you can impact more people.
2. Build on your previous ideas.
Joel Gascoigne, the founder of social media management software Buffer, built his business on ideas from other clients and apps that didn't work well. He pulled the good ideas from those apps, threw the bad ones away, then made his own to suit his needs and those of others.
Gascoigne created a way to queue tweets in based on the time of day when the most people can be reached, instead of scheduling each tweet individually, not knowing if your audience is even online to read your content. His idea with Buffer shows that rarely a single idea is enough on its own, because ideas are meant to be built. If an idea pops into your head, be sure to capture it, but never consider it your final idea. This is where the ideation process comes to life.
My own practice is to take two ideas that have at least one similarity, to see how they are related and to see how they are different. Once I have an idea of how they fit together, I take two completely different new ideas from the first batch and then find something similar between those two ideas. At the end, I take the first result and the second result, which are kind of opposites, and then I try to connect the dots between the opposites to create an original idea. It takes time, but it's worth it every time.
Related: 3 Genius Tactics to Boost Your Next Creative Breakthrough
3. Encourage mistakes along the way.
Did you know that the slinky was a product of error that originated from an attempt to build a meter designed to monitor the power of battleships? The inventor, Richard Jones, worked with tension springs and accidentally dropped one on the floor. When this happened, the spring continued to bounce from place to place after hitting the ground, creating the slinky.
Did you know that Spencer Silver, a researcher at 3M Laboratories, is the person who developed Post-its by accident? He was trying to develop a strong adhesive, but instead found an adhesive that was weaker than he needed. It stuck to objects but could be removed easily without leaving a mark. A nice invention, but it was not what he was looking for at the time. It was this big mistake that led to a mainstream desktop offering.
Freedom in your workplace breeds creativity. To have better ideas, you must learn to take risks, let go and promote creativity. Trying new things will always produce errors, but that's okay. It's actually the only way to learn along the way, and who knows, you might just discover the next slinky note or post-it note. Better business ideas are only found when you're willing to combine creativity, risk, and a willingness to make mistakes.
Creativity + risk + mistakes =better ideas
4. Realize that everyone has something to offer.
In 2015, when I learned that Alan Lafley would step down as CEO of Procter &Gamble, I knew it was a loss for P&G. He listened to his team, welcomed feedback and fostered healthy communication. He laid the foundation for a company that thrives on the idea that everyone has something to contribute. Of course, David Taylor is doing a great job as the new CEO, working to fix business agility with decision-making, but I can only wonder if Taylor will strive to continue running his business with this mantra at the forefront of everything they do. What I do know is the importance of this concept, as it can mean the difference between a team that succeeds or one that misses the mark.
Former First Lady Barbara Bush said, “Some people give time, money, some of their skills and relationships, others literally give their life's blood. But everyone has something to give. It is true that everyone has something to give, but individuals must be willing to look for opportunities to do so. Put these people – those who want to change the world for the better – on your team.
To have great ideas, you have to see things from all angles. The best way to do this is to have conversations with your diverse team. If everyone thinks like you, there will only be good ideas, not good ones. You need to surround yourself with people who will tell you the truth, not just people who agree with you. Build a team that works with strengths different from you and use those strengths to create better ideas for your business. The more input, the better. It gives you more feedback and data, which will improve your ideas.
5. Identify your customer.
Dollar Shave Club allows members to select blades for $3-$9 per month and have them delivered right to their doorstep. It was a novel concept in the shaving industry, but in 2011 Michael Dubin and Mark Levine knew they were onto something big. Their idea was successful and they now hold 16% of the US cartridge market by volume. Their rapid growth launched them just ahead of Schick as the nation's second-largest brand. According to Slice Intelligence, a digital commerce research firm, Dollar Shave Club has nearly 50% market share of online razor sales.
Dollar Shave Club has revolutionized the shaving industry, not only because 'they've made the art of shaving easier for consumers, but because they're a company that understands their customers. Sure, other companies collect data, but not all companies dissect it. Using analytics allows Dollar Shave Club to deliver an exceptional customer experience every time. With over 2.2 million happy subscribers, they've pushed the game forward in a hitherto unbroken industry, while understanding that business is about people.
Ask yourself…
Who is our client?
What does my client want and need?
What can our company do exceptionally well to help our customers?
Great business ideas are found where the answers to all of these questions intersect.
When you research, build on other ideas, encourage mistakes along the way, realize everyone has something to give and know who your customer is, you'll end up making a bigger impact with your great business ideas.
Related: 16 tools you need to be a badass business
