Monday, June 30, 2008
Generating Your Own Small Business Ideas
Every successful small business develops out of an idea.The key to finding your small business niche is to start by making a list of business ideas that resonate with your interests and then narrowing the list down from there. It may seem difficult at first, but once you get going you’d be surprised how quickly your list of potential business ventures grows!
You may be stuck and asking yourself how do you get started generating good business ideas? You can start by looking at yourself! A large number of small businesses are built around the skills or talents of an individual. If you have a particular skill or talent, or have specialized training of some sort, then opening up a small business based on your own personal services is very pragmatic. Remember the example I gave last week of my photographer friend? He turned his skill at being a competent photographer into a part-time business venture. Do you speak a foreign language fluently? I have been asked to teach French classes at a local college because they had students who were offered jobs abroad and needed a crash-course in French language and culture. Just remember that some personal services do require properly accredited qualifications, so be sure to check with your local authorities if you are eligible and suitably qualified to perform any specialized service.
Where else can you look for good business ideas? I guarantee spending time in your local bookstores will help generate ideas. Chances are you’ll come across books full of examples of entrepreneurs who have turned their ideas into a successful business product or service. Don’t forget to stop at the magazine rack either. Here in the Philippines, Summit Media publishes Entrepreneur magazine each and every month. It is an excellent publication that is full of interesting articles on and about different businesses launched right here in the Philippines. The latest issue has examples of businesses that have been launched and that cater to diverse areas of the market from video editing to organic foods to logistics and cargo handling. There are also informative sections on finance for small businesses, inventory management, and a whole host of topics many entrepreneurs find useful and informative.
The daily newspaper is also a source of ideas. Try reading the paper with an eye for learning about what products or services are missing or in great demand at the moment. Take notice of the products and services being advertised in the newspaper. If a firm is using their resources to advertise a product or service in a national newspaper, you can be relatively sure that market research has determined that demand either exists or is growing. Try to think about what businesses offer complimentary products or services and you may have an excellent chance to offer upstream or downstream products or services related to these companies and their industries in general.
Be sure not to overlook using your own eyes and trust what you see on a daily basis. It may seem obvious, but being observant and spending time carefully watching the flow of business in the area you want to be located usually helps in focusing your attention to what demands are not being adequately met. If you have lived most of your life outside of the Philippines, you will have a unique ‘lens’ for spotting gaps in the local market simply because you will have been exposed to different ways of doing things or have encountered products and services abroad that may be of value here in the Philippines. This lens is incredibly useful, especially if the business idea you come up with is a product or service that is appealing to both Filipino and expatriate customers. But be warned — just because you think a niche exists doesn’t mean your product or service will immediately ‘click’ in the Philippines. Sometimes there are cultural reasons why certain businesses don’t work, and sometimes the market just isn’t ready for certain products or services. Before getting too excited about any business idea, first take a step back and ask yourself if the idea is so great, why isn’t anybody else already doing it?
After compiling your list, focus on the business ideas you have the most passion for and feel most strongly about. Turning your idea into a full-fledged business will now take a great deal of time and resources – financial, physical, and emotional – so if you narrow your list down to those ideas that you have the most passion for, then you’ll greatly increase the likelihood of one-day getting your business off the ground.
Next week’s column will move on to the next step in the process after you have settled on your business idea — preparing a business plan and doing your own market research!
# 1 rick b said:
Hi Martin
Well written and common sense ides here, looking forward to reading further articles based on your experiences, good luck
# 2 Ron W said:
kamusta martin
i see your very buisness minded and have done alot of research on the buisness aspect there in philippines.i have had a few ideas myself to sell dumoy and mabe a sari sari store.i had helped my mother in law get started in selling vitaplus which is a natural drink to help cure colds and imunity issues.actually it worked rather well.my mother in law made very good comissions from the product.unfortunatly she is now pregnant and no longer selling vitaplus.back to the drawing board for me i guess hehehe.my passion is fishing so mabe look into buying a boat to catch tuna as im a fisherman here in usa.lobsters and crabs is primarily my game here.also me and my fiancee have land in agusan del sur and i would love to start a bananna plantation but the npa is very active there right now.alot of ideas but no permanant plans as of yet.thanks for the great article.
salamat martin
# 3 Martin said:
Hi Rick,
Thanks for your comment. I must admit, writing about this topic in a small column wasn’t easy. I needed to keep the focus on common sense practices or the article may have become too long and unfocussed. That is not to say I won’t be delving into specific business ideas in more detail later on. After going through the basics over the next few weeks, I hope at some point to be able to cover some specific business ventures and go into detail about how different entrepreneurs actually launched their ideas into profitable business ventures. Cheers!
# 4 Martin said:
I would like to apologize to everyone for the small font used in my article from today. I’ll make sure I increase the font size so that it makes for easy reading in the future.
# 5 marshallmellow said:
Howdy Martin,
Just as I thought you might, you have done a handsome job on this subject. I have already started my list…
*print $$, small bills because most don’t have change for the larger ones* …wait…just joking…no, really….
Looking forward to reading your next offering.
I appreciate your effort!
marshall
# 6 Martin said:
Hi Ron,
You raise an interesting point - getting involved in a business where you have considerable experience (i.e. fishing), vs. trying something new (i.e.banana plantation). There are no right or wrong answers, but generally speaking it is easier to get a business going if you already have some working knowledge or experience in the industry. Of course, there are exceptions to this generality and that should not stop you from exploring all options. Have you been able to contact any other people involved in these types of businesses here in the Philippines? That might be a good place to start and the information you learn may help you craft a future business plan for one or the other.
Hi Marshall,
That’s great! Wait, let me clarify that. Starting the list is great. I hope you haven’t gone off to buy a fancy colour copier just yet. Ha Ha Ha! But seriously, thanks for your compliments on the article, I’m glad you liked it. Cheers!
# 7 Ellen said:
Well written - much much better than reading a business textbook
… down to earth and it didn’t put me to sleep. 
Quote: “Sometimes there are cultural reasons why certain businesses don’t work, and sometimes the market just isn’t ready for certain products or services. Before getting too excited about any business idea, first take a step back and ask yourself if the idea is so great, why isn’t anybody else already doing it? ”
What I have noticed here is the Filipino pride. So, rule of thumb seems to be - while speaking to a Filipino, do not start a sentence with “In the USA, we do it this way ….”. They will probably smile and say “yes” but beware, this is just them showing respect.
Ellen
# 8 Martin said:
Hi Ellen,
You’re right - a smile and agreement can mean so many things in the Philippines! It can be hard to get a candid assessment from even your close Filipino friends, because they will often err on the side of politeness. This is very true throughout Asia, so it pays to get a wide assortment of views from a variety of people when discussing business possibilities. Cheers!
# 9 Klaus said:
Hi Martin, your articles are really down-to-earth. And, excuse me, one thing should be mentioned again and again: WAIT AND BE PATIENT! Believe me, i am living here since 1999. Anyway KUDOS to your blog and thanks for helping many expats…
# 10 Martin said:
Hi Klaus,
There is an old saying: patience is a virtue. This is especially true for non-Filipinos who contemplate going into business in the Philippines. There is no need to rush. I’d go even a step further and say that in the long run it pays to be patient. Some entrepreneurs believe they need to be first in opening a business. Others believe there is always room for one more business in any market (just don’t be the one that gets put out of business!). I’m more inclined to think it is better to err on the side of caution and be properly prepared than start a business without adequate preparation. I’ll be addressing this topic in a later column. Thanks for making a very important point — patience should not be underestimated! Cheers!