Business Idea

While looking for a business idea and planning its development, a few key steps are important: evaluation of available resources, search for a business idea, evaluation of the idea, and preparations for its development.

1. Evaluation of available resources

Prior to searching for a business idea, you have to assess objectively whether your resources are sufficient for the development of the idea into a successful business. You will have to commit various resources for the development of a business idea: your time, your communication, creativity and entrepreneurial skills, knowledge and experience, connections, real estate, tools, funds etc.

2.Search for a business idea

You can get ideas for business from a variety of sources:

• Personal needs. Prior to starting the development of a business idea it is always worthwhile to start from your nearest environment. Think about what product or service you or people close to you lack most often, and what would you consider as a useful, efficient and needed product/service. Be creative and practical – identification of the lacking product or service could become a niche for your business.
• Available professional capabilities. Starting a business while having specific experience or education in a certain area is both useful and purposeful: you will realise your professional capabilities and the customer will receive a quality product or service.
• Experience of other countries. Use best practices and examples from foreign countries – creation and development of products or services recognised abroad in Lithuania can be an excellent idea for a new business.
• Be open to novelties, observe people and their preferences and choices, and follow global trends. Often a new product or service become popular in an instant – if you spot a potential idea, develop it.

3. Evaluation of the business idea

Prior to starting business, evaluate your idea critically by answering the following questions:

• What will the start of business cost you? Do you have enough money?
• If you will need additional financing, will you be able to meet requirements set by the banks?
• Why your idea is more advantageous than the ideas already available in the market?
• The market for your product or service: is it increasing or shrinking? What market share you would get?
• Why your product or service will be needed?
• Who will be your consumers, how can you characterise them?
• Who will be your competitors and what are you advantages? Will you be able to compete with competitors already established in the market?
• When production of the product or provision of the service will become profitable?
• Share your idea. This can be useful as you will hear opinions and observations from your friends, family and other people. While sharing the idea you can see its deficiencies and improve it. In addition, this is an excellent opportunity to find business partners.

4. Preparations for the development of the idea

• Prepare a business plan:
• Set your objectives – identify what action will lead to what results;
• Identify potential threats and opportunities, strengths and weaknesses;
• Using the Business Plan Calculator, check what profit you will earn and whether you can incur a loss during the first 5 years of your business;
• Decide on the form of business: individual activities under a business certificate or a business licence, or formation of an enterprise – a small partnership, a private company;
• Obtain required permits and licences. Business information provided will help you identify the requisite licences and their issuance procedures;
• Secure initial funding for the business.