The process of transforming an idea into a new company is challenging and requires substantial efforts. Fortunately, extensive research on the business creation experience provides a wealth of systematic information that can help entrepreneurs and those considering becoming entrepreneurs make better decisions about their own ventures.
The first step is to identify a potential business idea that would meet a need. This is often easier than people think, especially if they are willing to look at the services and products they already use and ask themselves “What if?”
For example, someone who enjoys hiking may come up with a business idea such as a hiking gear rental service or a guided hike business. Or, someone who is passionate about cars might find a way to turn their love for classic car restoration into a viable business.
Once you have an idea, it is important to research the potential market and competitors. This will help you determine if your business can stand out from the competition and also will be an opportunity to gather customer feedback.
Covid-19 and the pandemic environment have provided a major impetus for new business formation. For example, in 2021, total applications to form new businesses were the highest on record relative to 2019. However, it is still too early to know whether this surge will be sustained or if it will reverse direction and become a temporary aberration.
