First, take some time to evaluate yourself. Consider what you're good at, what skills and experience you have, and what you're passionate about. As a pastry chef, you probably have excellent culinary skills, as well as customer service and management experience. Think about whether you want to start a business in the food industry, or if you want to try something completely different. Determine your financial capacity and the level of effort you're willing to put in for the new business.Before You start...
"The Best Business idea" will determine your business would make money or loose money. So take your time and make an effort to follow the steps carefully.
Get a pen and paper and let us get down to business!
Once you have a good understanding of your strengths and limitations, start brainstorming business ideas. Think about what kind of business you would enjoy running and that would make use of your skills. Take some time to do research using online tools such as Google, Facebook, Instagram, Pinterest, and Reddit to find trending ideas. You can also ask your colleagues, friends, and family for their thoughts and collaborate to gather ideas. Write down 10 business ideas that you think you can do.If you choose the wrong idea, you may struggle to make money or even fail completely.
As an example, one of your ideas could be to start a small bakery that specializes in French pastries, which you know very well as a pastry chef.
Now that you have your list of 10 business ideas, it's time to analyze each one. Create a table with columns labeled "What, How, When, Where" for each idea. The "What" column should describe the product or service you're offering. The "How" column should describe how you plan to deliver the product or service. The "When" column should describe when you plan to start the business, and the "Where" column should describe where you plan to operate the business.
For the French pastry bakery idea, your table might look like this:
How to Find the Best Business Idea What How When Where
column suggests that the best business ideas can come from identifying a problem or need, creating a unique solution or product, offering a service based on your skills or expertise, or tapping into a trending market or industry.
This column explains how you are going to make the product or service. What technologies to use, what techniques and what resources are you going to use to make it.
This column should include when is the best time to make the product. is there a season to make the product and sell it or is it an ever green product, which means it has a constant demand through-out the year
This column should include where is the best place to make the product or service and where is the best place to sell it.
- French pastries business
- Using the family Recipe , list the techniques and the tools and ingredients you need
- seasonal demand during holidays or special occasions, but there is generally a constant demand throughout the year as people have a sweet tooth and enjoy desserts.
- Home Kitchen to make it
- Online and Local Market to sell it
Next, do a SWOT analysis for each idea. SWOT stands for strengths, weaknesses, opportunities, and threats. In this analysis, you'll evaluate the internal and external factors that could impact the success of your business. Consider factors such as competition, market demand, and financial viability. Based on your analysis, you can identify the strengths and weaknesses of each idea and determine which ones have the most potential.
For the French pastry bakery idea, your SWOT analysis might look like this:
SWOT Analysis with example Strength Weakness Opportunity Threats
These are the things you're already good at! For instance, you might have a team of experts who are great at what they do, or you might have a product that's known for being high quality.
These are areas where you bit behind and could use some improvement.
These are possibilities for growth or improvement that are out there waiting for you.
These are potential obstacles that could get in your way.
- Strong culinary skills and experience in French pastries
- Ability to create high-quality, authentic products
- Secrete Family Recipe for pastries
- Limited experience in running a retail bakery
- Not enough Capital to start the business on her own
- High demand for high-quality, authentic French pastries
- Unique Product
- Competition from other bakeries and cafes in the area
Once you have identified the strengths and weaknesses of each idea, it's time to do some market research. This will help you determine the demand for your product or service and get an idea of the competition and pricing. Market research can include surveys, focus groups, online research, and analysis of industry reports.Did you know this?
You can also visit competitors' websites and stores to gather information on their products and pricing.
For the French pastry bakery idea, Michel conducted the market research by visiting local bakeries and cafes to see what types of pastries they offer and at what price point. You could also conduct surveys or focus groups to determine if there is a demand for French pastries in your area.
Finally, calculate your break-even point for each business idea. The break-even point is the point at which your revenue equals your expenses, meaning you're neither making a profit nor a loss. This calculation can help you determine if a business idea is financially viable and how many products or services you need to sell to break even.
How to Calculate Break-even point?
To calculate the break-even point, you'll need to know your fixed costs (such as rent, equipment, and utilities) and your variable costs (such as ingredients and labor). Then, you can use the following formula:Break-even point = Fixed costs ÷ (Unit selling price - Variable costs per unit)
if your fixed costs are $5,000 per month and you plan to sell French pastries for $3 each with variable costs of $1.50 per pastry, your break-even point would be:
$5,000 ÷ ($3 - $1.50) = 3,333 pastries per month
This calculation can help you determine if selling 3,333 pastries per month is feasible and if the business idea is financially viable.
Now that you've completed all the steps of the checklist, it's time to choose the best business idea for you. Review all the information you've gathered and consider which idea aligns best with your strengths, passions, and financial capacity.
For Michel, the former pastry chef turned housewife, she might consider starting a French pastry bakery. After conducting research and analyzing the idea, she's determined that there is a demand for French pastries in her area and she has the necessary skills and experience to make high-quality pastries. Additionally, she's calculated that she would need to sell 3,333 pastries per month to break even, which she believes is achievable.
By following this checklist, Michel has found the best business idea for her, one that aligns with her skills, experience, and passion for baking. She's confident in her decision because she's done the research and analysis necessary to determine its viability.
What are some common mistakes to avoid when searching for a business idea?
Some common mistakes to avoid when choosing a business idea include :
- Selecting an idea without proper research
- Choosing an idea based solely on passion without considering market demand or profitability
- Underestimating the resources and capital needed to start and operate the business
How can I test my business idea before launching?
You can test your business idea before launching by conducting market research, creating a minimum viable product (MVP) to get feedback from potential customers, and analyzing the feasibility of your idea based on financial projections and other key metrics.
What should I consider when choosing a business idea?
When choosing a business idea, it's important to consider factors such as your skills and expertise, market demand, competition, potential profitability, and resources needed to start and operate the business.
Why is it important to find the right business idea?
Finding the right business idea is important because it can greatly impact the success of your business. If you choose the wrong idea, you may struggle to make money or even fail completely.
How do I come up with a business idea?
You can come up with a business idea by identifying a problem or need, creating a unique solution or product, offering a service based on your skills or expertise, or tapping into a trending market or industry. Above, we have clearly explained the process in a step-by-step guide as a checklist so you won't miss anything.