How to find the Best Business Idea A must read checklist

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.

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.

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:

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:

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.

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:

Example :
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.

Now you have a great Business idea. it's time to create a Proper Business plan. and Start building your business!.