How to choose a business idea

Key points

• Harnessing your strengths
• Considering different business models
• Researching your options
• Focusing on growth areas
• Gathering your resources
• Taking a long-term approach

Self-employment is a growing trend, with the Australian Bureau of Statistics revealing that as at June 2021, there were than 2.4 million businesses trading in the Australian economy. The opportunities are endless – but what is the perfect business idea for you? Figuring out the best business idea can be tricky, so here’s some elements to consider before you join the growing number of people choosing to follow their business ownership dreams. 

Harness your strengths

Reflect on the skills and experience you’ve built up over your life, both in various jobs and outside of work. Which workplace environments were more enjoyable and interesting?

Think about the skills you’ve learned in the workforce, what you most enjoy doing when not at work and additional skills you’ve built up through a hobby that you’d like to turn into a job.

Consider different business models

Take time to map out what you want from your business and what you’d like to achieve.

If you could choose a perfect business model, what would it be? It might be setting up a platform to earn passive income. Or perhaps you’d prefer to spend your time working on something that’s rewarding and engaging.

By asking yourself how your ideal business would be run you can carve out a role for yourself that makes running a business an enriching and enjoyable experience.

Research your options

Consider how you could apply your skills and experience to your ideal business model. Research your options online to find out what’s trending, attend conferences and exhibits, and browse the Australian Bureau of Statistics and Austrade sites.

Opportunities are out there for you to utilise your skill base via gaps in the market – the trick is discovering what those opportunities might be. By researching your options, you’ll be one step closer to finding your perfect business idea.

Focus on growth areas

People are prepared to pay for perceived added value – so is there room for your business in a growth area? Search for growing markets that interest you and find out more about the businesses that are succeeding in these industries. From healthcare to tech, there are many growth industries worth exploring.

Consider the current economic situation and whether there are certain markets that aren’t being effectively serviced. Is there a market where you could offer a new or improved service or product than what’s currently available? Make a list of potential opportunities.

Gather your resources

Speak with family, friends, colleagues and other business owners to find out whether they see your idea as solving a problem or providing something of value to consumers. Think about the outside help you’ll need to take your idea to the next level.

Take a long-term approach

Recognise the difference between a short-term fad and a genuine global or local trend with future growth potential. Some people get held back by constantly searching for the ‘perfect’ business idea.

Sometimes the best business idea is the one you’re already considering. Your ideal business will preferably be part of a trend with a long-term, sustainable future.

Next steps

Download our Business plan template (PDF 591kB).