3 Basic Categories of Business Ideas

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Categories of Business Ideas

Building out a new business begins with an idea. The idea development process and the business concept might probably encompass some degree of testing via iteration and prototyping. Over the course of the startup phase, your business will evolve. The idea might even change into something completely different. With that said, there are 3 categories for business ideas. And these categories can evoke the new great idea or reinforce the existing one. Let’s check them out:

New business ideas

When we talk about the categories of business ideas, the ‘’new business idea” is the hardest to invent. A ‘’new” business idea is one that doesn’t currently exist or didn’t exist in the past. It can be called a new invention. Most people confuse a new idea with an enhancement or disruption of an existing idea. The reality is that new ideas are pretty challenging to come by. So do not sit back and think that this is the only source of new ideas. People who have managed to come up with new business ideas have achieved monumental success. Typical examples of new business ideas include Virtually Reality and Segway.

Improvement is another category of business ideas

Improvement business idea involves taking a product or service that already exists in the market, tweak and finesse it and disseminate it in a different, better fashion. You can deliver it directly or indirectly. In other words, you might identify an underperforming product, source the best quality raw materials and manufacture a better version of it. Or you can just take the product as it is and add value to it by including additional services and add-ons. The vast majority of small businesses fall into this category of business idea. Examples of the companies that fall into this category include LED lighting, Disney Land, and Virgin Airlines.

Disruption business ideas

This category represents a new and revolutionary way of doing things. Typical examples of businesses that fall into this category include Amazon, Uber, and Airbnb. This kind of business idea is made possible by the growth of the internet. Smart people are now able to transform, reinvent and disrupt industries that were long thought to be untouchable. While the internet and other technologies don’t have the power to disrupt entire industries, they provide a platform to do that.

Conclusion

These categories of business ideas can give you a hint on where to channel your efforts. And this starts by knowing the sources of these business ideas, which include reading, travel, personal experiences, podcasts, videos, hobbies, crowdsourcing, conversations and much more.