Have you ever wished there was an app or business for a certain problem you encountered? Take holiday sweaters. During the holiday season, tacky sweater parties are incredibly popular, but customers often turn to thrift stores to purchase cheap, itchy, and impersonalized sweaters.
Tipsy Elves changed that. Their business idea was simple: provide fun, updated, and high-quality holiday sweaters. The investors of Shark Tank thought it was a good idea a good idea and in the two years following the appearance, they made $10 million in sales.
Numerous books, entrepreneurship professors, and podcasters cite this exercise as a method to quickly create and test business ideas.
- Write it out
During the course of a day or week, write down 10 problems you encounter. This can be something as small as having trouble opening and cutting an avocado or as big as trying to get home the fastest route possible.
- Chat it up
Share your ideas with friends and family members. Ask if they encounter the same problem as you and how your situations differ and discuss possible solutions. The most important thing to do is speak with as many people as possible. You’re already testing your concept.
- Jot it down
Based on your research, create a solution to best fit your target market’s needs. Rather than trying to cater to everyone, focus on your core customer and how best to serve them. Look into similar businesses who attempted to do what you want to do and learn from their mistakes. Find a differentiating factor in your solution to differentiate you from the competition.