Identifying an opportunity

The first stage in creating a small business is to come up with an idea.

The sources of ideas are varied. The idea may come from a chance thought or an inspiration. Sometimes the idea comes because somebody feels that they could provide a better product or service than a local competitor. The idea may come from a period of overseas travel where an individual may see a product or service that is not available at home.

There are many other factors that may inspire a business idea.

For example, somebody wanting to set up their own business might see a franchise opportunity. They might see another product that they could provide accessories for, such as speakers for an iPod.

Alternatively the person wanting to set up the business may have special abilities. These could include creative talents, an excellent knowledge of IT systems or simply being good at communicating with customers. It is the idea that creates the business opportunity.