How to Create a Good Business Idea to Make a Profitable Business?

Last Updated: 

April 16, 2024

Not everybody is made to be an employee. There are a few minds who are determined to create something they own, whether a small startup or a big business.

Entrepreneurship is an option for such people to achieve their goals. Looking very difficult a few decades ago, starting your own business is now easy with the growing small business and a freelance economy. 

The first thing you’ll need is an idea. But how do you find an idea to start and grow your business around? Read this guide and follow all the tips to find one. 

Key Takeaways on Creating a Good Business Idea

  1. Identify Real Problems: Successful businesses often stem from solving common frustrations or inefficiencies. Look around for everyday annoyances or inefficiencies that you and others face.
  2. Engage Your Network: Discuss your ideas with family, friends, and colleagues for valuable feedback and suggestions. Their insights can help refine your concepts and align them with your strengths.
  3. Iterate on Existing Solutions: You don't always need a groundbreaking idea; enhancing existing products or services can be equally lucrative. Consider how you can improve upon what's already available in the market.
  4. Harness Your Passions: Leverage your interests, hobbies, or existing skills as a foundation for your business idea. Building on what you already know and love increases your chances of success and fulfilment.
  5. Stay Current with Trends: Keep an eye on industry trends and emerging technologies to identify new business opportunities. While trendy ideas may face competition, they also offer potential for innovation and growth.
  6. Utilise AI Tools: Explore AI tools like business idea generators to spark creativity and discover niche opportunities aligned with current trends or interests.
  7. Execution Is Key: Ultimately, the success of your business idea hinges on execution. Take actionable steps to develop and launch your concept, focusing on addressing genuine needs and delivering value.
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1. Find a Solution to a Common Problem

Think about all the famous startups around you. All were started to solve a real problem. This foundation of every successful business is a solution to a problem.

Whether it is Uber making commuting and transportation easy, Amazon delivering things in no time, or Facebook connecting people, all solve a problem.

In short, you have to pinpoint a problem and try to find a solution for it. The best way for you to find such a problem is to look around you. Yes, you heard right. 

Find something that frustrates you. Imagine yourself as a detective. Look around at your daily life, the things you do, and the people you interact with. 

If it is a problem, you encounter every day (or regularly), and you think other people will also face it, this can become your idea. This is going to be your best idea since there is a demand for it.

Think about these questions:

  1. What problems or frustrations do you encounter? 
  2. What things do you (or the people you know) constantly complain about?
  3. Are there products that are poorly designed, inconvenient, or just plain missing? Maybe there's a service that could be made more efficient or enjoyable.
  4. Are there tasks that take way too long or require too much effort?
  5. Is there a specific industry where things seem outdated or lacking innovation?

TIP: Take a paper, write down all your thoughts (your ideas), and keep doing it every day. Find a list of problems you face and that you think others will also face. Try to pick 3-4 problems whose solutions do not yet exist. 

2. Talk to Your Family, Friends, and Colleagues 

There is a famous African proverb, "If you want to go fast, go alone, if you want to go far, go together". This line defines the importance of community and unity.

In this part of finding an idea, you have to follow this proverb. Talk to your family, friends, and/or colleagues. Why? They are the ones who know you the best, your abilities, talents, and more.

Here are a few spots where these people can help you:

  1. Tell you more ideas
  2. Refine the already ones you have written on the paper
  3. Suggest what you should do as per your skill set
  4. Provide you additional support and inspiration

Keep in mind whom you are discussing with. For example, a person who has been doing a job for years but has never tried a business may tell you to focus on what you’re doing already. Choose wisely!

3. Build on Existing Services or Products

Always remember, you don’t have to come up with an idea no one has ever thought of or do something that nobody has ever done before.

Instead, you have to focus on doing something that can be monetised and earn you some capital. It can be something your father has been doing or a product or service you have used, and you think you can make it better.

What if?” is the question that can help you the most in this scenario. Every entrepreneur should keep asking this question themselves. For example, you can ask yourself questions like 

  1. What if this product or service was available in my town?
  2. What if this service was better quality yet more affordable
  3. What if this product was easier to use?
  4. What if travelling by plane didn't have to be so dull?
  5. What if gyms didn't have to be so intimidating?
  6. And more.

If you find something that you can improve and earn better through it, that’s great. It will be a lot easier than starting something from scratch.

Think of the improvement you can make in the product you pinpointed. For example, adding new features and specifications, improving the existing design, etc. 

4. Use Your Passions As Fuel

You can’t build an application if you have never written code before. Just like that, you can’t start working on an idea that is way far from what you have been doing so far.

Focus on finding something you have done already. It can be your hobbies, interests, or a business your family has been doing (as discussed earlier). If you choose your family business, find something that you can improve in it. 

On the other hand, if you go for your hobbies or interests, find something you not just love doing but also have the maximum knowledge and experience about. 

For example, if you like raising goats, you can start a company that constructs goat barns, provide materials, or transport them. Or, if you love baking, start an online cake shop, and try to introduce new cake designs, etc. 

5. Go With the Trends

Trends provide insights into what is currently happening around you or in your particular field. They help you identify new opportunities, predict challenges, and make well-thought-out decisions. 

Whether you want to refine your existing business idea or find a new one, go after the trends. Keep your eyes peeled for trends, news articles, or even conversations you overhear.

Suppose you are in the real estate business. If so, use AI (current trend) to create an algorithm that asks questions according to your client’s interests and helps them find the best house for them. 

However, if you go after the trends, you are going to face a lot of competition. As obvious, it is not just you who follow trends, there are a lot of people who to ahead of their time. 

If you want to start a trendy business, use AI tools to find ideas, such as Business Idea Generator. Simply submit the trend/topic/keyword and get a long list of business ideas. Isn’t it amazing?

Business idea generator tool home page

For example, we have asked the tools to generate ideas for “goat farming”, and it provides us with the following results:

Example business idea generator tool results.


To make a good business, first, find a problem to solve. Look around for things that bother you or others. Then, talk to family and friends for advice. 

Remember, you don't always need a totally new idea. Think about how to improve things already out there. Use what you're good at, like hobbies or skills. 

Another way to find a business idea is to follow the industry trends. Keep up with what's popular to stay competitive. 

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