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10 Step Process for Effective Business Problem Solving

Posted august 3, 2021 by harriet genever.

When you start a small business or launch a startup, the one thing you can count on is the unexpected. No matter how thoroughly you plan, forecast , and test, problems are bound to arise. This is why as an entrepreneur, you need to know how to solve business problems effectively.

What is problem solving in business?

Problem solving in business relates to establishing processes that mitigate or remove obstacles currently preventing you from reaching strategic goals . These are typically complex issues that create a gap between actual results and your desired outcome. They may be present in a single team, operational process, or throughout your entire organization, typically without an immediate or obvious solution. 

To approach problem solving successfully, you need to establish consistent processes that help you evaluate, explore solutions, prioritize execution, and measure success. In many ways, it should be similar to how you review business performance through a monthly plan review . You work through the same documentation, look for gaps, dig deeper to identify the root cause, and hash out options. Without this process, you simply cannot expect to solve problems efficiently or effectively. 

Why problem solving is important for your business

While some would say problem-solving comes naturally, it’s actually a skill you can grow and refine over time. Problem solving skills will help you and your team tackle critical issues and conflicts as they arise. It starts from the top. You as the business owner or CEO needing to display the type of level-headed problem solving that you expect to see from your employees.

Doing so will help you and your staff quickly deal with issues, establish and refine a problem solving process, turn challenges into opportunities, and generally keep a level head. Now, the best business leaders didn’t just find a magic solution to solve their problems, they built processes and leveraged tools to find success. And you can do the same.

By following this 10-step process, you can develop your problem-solving skills and approach any issue that arises with confidence. 

1. Define the problem

When a problem arises, it can be very easy to jump right into creating a solution. However, if you don’t thoroughly examine what led to the problem in the first place, you may create a strategy that doesn’t actually solve it. You may just be treating the symptoms.

For instance, if you realize that your sales from new customers are dropping, your first inclination might be to rush into putting together a marketing plan to increase exposure. But what if decreasing sales are just a symptom of the real problem? 

When you define the problem, you want to be sure you’re not missing the forest for the trees. If you have a large issue on your hands, you’ll want to look at it from several different angles:

Competition 

Is a competitor’s promotion or pricing affecting your sales? Are there new entrants in your market? How are they marketing their product or business?

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Business model 

Is your business model sustainable? Is it realistic for how fast you want to grow? Should you explore different pricing or cost strategies?

Market factors

How are world events and the nation’s economy affecting your customers and your sales?

Are there any issues affecting your team? Do they have the tools and resources they need to succeed? 

Goal alignment 

Is everyone on your team working toward the same goal ? Have you communicated your short-term and long-term business goals clearly and often?

There are a lot of ways to approach the issue when you’re facing a serious business problem. The key is to make sure you’re getting a full snapshot of what’s going on so you don’t waste money and resources on band-aid solutions. 

Going back to our example, by looking at every facet of your business, you may discover that you’re spending more on advertising than your competitors already. And instead, there’s a communication gap within your team that’s leading to the mishandling of new customers and therefore lost sales. 

If you jumped into fixing the exposure of your brand, you would have been dumping more money into an area you’re already winning. Potentially leading to greater losses as more and more new customers are dropped due to poor internal communication.

This is why it’s so vital that you explore your blind spots and track the problem to its source.

2. Conduct a SWOT analysis

All good businesses solve some sort of problem for customers. What if your particular business problem is actually an opportunity, or even a strength if considered from a different angle? This is when you’d want to conduct a SWOT analysis to determine if that is in fact the case.

SWOT is a great tool for strategic planning and bringing multiple viewpoints to the table when you’re looking at investing resources to solve a problem. This may even be incorporated in your attempts to identify the source of your problem, as it can quickly outline specific strengths and weaknesses of your business. And then by identifying any potential opportunities or threats, you can utilize your findings to kickstart a solution. 

3. Identify multiple solutions with design thinking

As you approach solving your problem, you may want to consider using the design thinking approach . It’s often used by organizations looking to solve big, community-based problems. One of its strengths is that it requires involving a wide range of people in the problem-solving process. Which leads to multiple perspectives and solutions arising.

This approach—applying your company’s skills and expertise to a problem in the market—is the basis for design thinking.

It’s not about finding the most complex problems to solve, but about finding common needs within the organization and in the real world and coming up with solutions that fit those needs. When you’re solving business problems, this applies in the sense that you’re looking for solutions that address underlying issues—you’re looking at the big picture.

4. Conduct market research and customer outreach

Market research and customer outreach aren’t the sorts of things small business owners and startups can do once and then cross off the list. When you’re facing a roadblock, think back to the last time you did some solid market research or took a deep dive into understanding the competitive landscape .

Market research and the insights you get from customer outreach aren’t a silver bullet. Many companies struggle with what they should do with conflicting data points. But it’s worth struggling through and gathering information that can help you better understand your target market . Plus, your customers can be one of the best sources of criticism. It’s actually a gift if you can avoid taking the negatives personally .

The worst thing you can do when you’re facing challenges is isolating yourself from your customers and ignore your competition. So survey your customers. Put together a competitive matrix . 

5. Seek input from your team and your mentors

Don’t do your SWOT analysis or design thinking work by yourself. The freedom to express concerns, opinions, and ideas will allow people in an organization to speak up. Their feedback is going to help you move faster and more efficiently. If you have a team in place, bring them into the discussion. You hired them to be experts in their area; use their expertise to navigate and dig deeper into underlying causes of problems and potential solutions.

If you’re running your business solo, at least bring in a trusted mentor. SCORE offers a free business mentorship program if you don’t already have one. It can also be helpful to connect with a strategic business advisor , especially if business financials aren’t your strongest suit.

Quoting Stephen Covey, who said that “strength lies in differences, not in similarities,” speaking to the importance of diversity when it comes to problem-solving in business. The more diverse a team is , the more often innovative solutions to the problems faced by the organization appear.

In fact, it has been found that groups that show greater diversity were better at solving problems than groups made up specifically of highly skilled problem solvers. So whoever you bring in to help you problem-solve, resist the urge to surround yourself with people who already agree with you about everything.

6. Apply lean planning for nimble execution

So you do your SWOT analysis and your design thinking exercise. You come up with a set of strong, data-driven ideas. But implementing them requires you to adjust your budget, or your strategic plan, or even your understanding of your target market.

Are you willing to change course? Can you quickly make adjustments? Well in order to grow, you can’t be afraid to be nimble . 

By adopting the lean business planning method —the process of revising your business strategy regularly—you’ll be able to shift your strategies more fluidly. You don’t want to change course every week, and you don’t want to fall victim to shiny object thinking. But you can strike a balance that allows you to reduce your business’s risk while keeping your team heading in the right direction.

Along the way, you’ll make strategic decisions that don’t pan out the way you hoped. The best thing you can do is test your ideas and iterate often so you’re not wasting money and resources on things that don’t work. That’s Lean Planning .

7. Model different financial scenarios

When you’re trying to solve a serious business problem, one of the best things you can do is build a few different financial forecasts so you can model different scenarios. You might find that the idea that seemed the strongest will take longer than you thought to reverse a negative financial trend. At the very least you’ll have better insight into the financial impact of moving in a different direction.

The real benefit here is looking at different tactical approaches to the same problem. Maybe instead of increasing sales right now, you’re better off in the long run if you adopt a strategy to reduce churn and retain your best customers. You won’t know unless you model a few different scenarios. You can do this by using spreadsheets, and a tool like LivePlan can make it easier and quicker.

8. Watch your cash flow

While you’re working to solve a challenging business problem, pay particular attention to your cash flow and your cash flow forecast . Understanding when your company is at risk of running out of cash in the bank can help you be proactive. It’s a lot easier to get a line of credit while your financials still look good and healthy, than when you’re one pay period away from ruin.

If you’re dealing with a serious issue, it’s easy to start to get tunnel vision. You’ll benefit from maintaining a little breathing room for your business as you figure out what to do next.

9. Use a decision-making framework

Once you’ve gathered all the information you need, generated a number of ideas, and done some financial modeling, you might still feel uncertain. It’s natural—you’re not a fortune-teller. You’re trying to make the best decision you can with the information you have.

This article offers a really useful approach to making decisions. It starts with putting your options into a matrix like this one:

Use this sort of framework to put everything you’ve learned out on the table. If you’re working with a bigger team, this sort of exercise can also bring the rest of your team to the table so they feel some ownership over the outcome.

10. Identify key metrics to track

How will you know your problem is solved? And not just the symptom—how will you know when you’ve addressed the underlying issues? Before you dive into enacting the solution, make sure you know what success looks like.

Decide on a few key performance indicators . Take a baseline measurement, and set a goal and a timeframe. You’re essentially translating your solution into a plan, complete with milestones and goals. Without these, you’ve simply made a blind decision with no way to track success. You need those goals and milestones to make your plan real .

Problem solving skills to improve

As you and your team work through this process, it’s worth keeping in mind specific problem solving skills you should continue to develop. Bolstering your ability, as well as your team, to solve problems effectively will only make this process more useful and efficient. Here are a few key skills to work on.

Emotional intelligence

It can be very easy to make quick, emotional responses in a time of crisis or when discussing something you’re passionate about. To avoid making assumptions and letting your emotions get the best of you, you need to focus on empathizing with others. This involves understanding your own emotional state, reactions and listening carefully to the responses of your team. The more you’re able to listen carefully, the better you’ll be at asking for and taking advice that actually leads to effective problem solving.

Jumping right into a solution can immediately kill the possibility of solving your problem. Just like when you start a business , you need to do the research into what the problem you’re solving actually is. Luckily, you can embed research into your problem solving by holding active reviews of financial performance and team processes. Simply asking “What? Where? When? How?” can lead to more in-depth explorations of potential issues.

The best thing you can do to grow your research abilities is to encourage and practice curiosity. Look at every problem as an opportunity. Something that may be trouble now, but is worth exploring and finding the right solution. You’ll pick up best practices, useful tools and fine-tune your own research process the more you’re willing to explore.

Brainstorming

Creatively brainstorming with your team is somewhat of an art form. There needs to be a willingness to throw everything at the wall and act as if nothing is a bad idea at the start. This style of collaboration encourages participation without fear of rejection. It also helps outline potential solutions outside of your current scope, that you can refine and turn into realistic action.

Work on breaking down problems and try to give everyone in the room a voice. The more input you allow, the greater potential you have for finding the best solution.

Decisiveness

One thing that can drag out acting upon a potential solution, is being indecisive. If you aren’t willing to state when the final cutoff for deliberation is, you simply won’t take steps quickly enough. This is when having a process for problem solving comes in handy, as it purposefully outlines when you should start taking action.

Work on choosing decision-makers, identify necessary results and be prepared to analyze and adjust if necessary. You don’t have to get it right every time, but taking action at the right time, even if it fails, is almost more vital than never taking a step.  

Stemming off failure, you need to learn to be resilient. Again, no one gets it perfect every single time. There are so many factors in play to consider and sometimes even the most well-thought-out solution doesn’t stick. Instead of being down on yourself or your team, look to separate yourself from the problem and continue to think of it as a puzzle worth solving. Every failure is a learning opportunity and it only helps you further refine and eliminate issues in your strategy.

Problem solving is a process

The key to effective problem-solving in business is the ability to adapt. You can waste a lot of resources on staying the wrong course for too long. So make a plan to reduce your risk now. Think about what you’d do if you were faced with a problem large enough to sink your business. Be as proactive as you can.

Editor’s note: This article was originally published in 2016. It was updated in 2021.

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Harriet Genever

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8 Problem-Solving Practices That See Startups to Success Creating an innovative new business is guaranteed to test your skills, patience and determination, and you need to derive satisfaction from the journey, as well as the destination.

By Martin Zwilling Oct 23, 2015

Opinions expressed by Entrepreneur contributors are their own.

If you find problem-solving to be energizing, you could be the next great entrepreneur. On the other hand, if facing unforeseen problems annoys you and causes ongoing stress, don't quit your day job. Creating an innovative new business is guaranteed to test your skills, patience and determination, and you need to derive satisfaction from the journey, as well as the destination.

Contrary to a popular myth, problem-solving is a talent that can be developed. To do it well requires a focus on several key activities and practices, including the following:

1. Maintain a positive attitude, since startup problems are normal.

If you feel angry or exhibit a negative attitude to the team about problems, you will jeopardize the potential success of your startup. Successful problem-solving is often more a state of mind than any particular skill or process.

Related: 6 Remarkably Simple Steps to Becoming a Real Problem-Solver

2. Remember that learning requires listening more than talking.

The first challenge for many aspiring entrepreneurs is to put aside their passionate advocacy long enough to acknowledge an existing problem. That means practicing non-defensive listening to key advisors, team members and customers. You can't solve a problem if you don't see one.

3. Openly communicate about each problem and commit to fix it.

Entrepreneurs who solve problems well don't hide them from their teams or make excuses and publicly take responsibility for a timely resolution. It's smart to outline initial actions, but not so smart to promise any specific solution until you have had time to investigate the source.

4. Don't hesitate to call in an experienced advisor or mentor to help.

Very few startup problems are unique. An experienced advisor, board member or investor has seen them all. You can save yourself countless hours of frustration and failed efforts by swallowing your pride, asking for help and following expert suggestions.

5. Follow a disciplined analysis before jumping to conclusions.

Make sure you have all the facts, as well as insights from relevant sources and outside experts. Don't let your passions and emotions drive you to a quick judgment, and remember that there are always at least two sides to every question. Practice active listening to get all input.

Related: 5 Problems Business School Won't Prepare You For

6. Track every problem.

Problems become crises when affected people hear nothing or sense that no attention is being paid to the issue. Thus a visible system is required for reporting to all relevant parties, which also keeps your focus on the problem until it is resolved.

7. Set deadlines and measure and pay for performance.

Remember the old adage that you get what you pay for. If everyone is incented to find new customers, there will be little focus on resolving problems with current ones. Make sure there are metrics for problem counts, resolution time and revenue impact.

8. Analyze issues to prevent similar problems.

Usually it pays to dig deeper on lost sales opportunities and negative customer reviews to resolve a deep-seated product deficiency or delivery channel issue. Make sure processes are updated, training is improved or priorities are communicated as required.

The best entrepreneurs understand that solving problems is what a business is all about. Of course, problem-solving is required for scaling and continued business growth. It never ends.

Thus every aspiring entrepreneur needs to develop a problem-solving mindset, and learn to enjoy both the problem and the solution. That mindset will help you develop and survive as a person as well, and build better organizations and communities. Isn't it time you started celebrating problems rather than complaining about them?

Related: 3 Ways to Get Stress Working for You

Veteran startup mentor, executive, blogger, author, tech professional, and Angel investor.

Martin Zwilling is the founder and CEO of  Startup Professionals , a company that provides products and services to startup founders and small business owners. The author of  Do You Have What It Takes to Be an Entrepreneur?  and  Attracting an Angel, he writes a daily  blog  for entrepreneurs and dispenses advice on the subject of startups.

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How to Write the Best Problem Statement for Your Startup

The Lean Startup Methodology changed the way we go about starting businesses. Instead of creating a business plan worthy of a Harvard Business School case study, we go out into the market space that we know and find a real problem. Then, we validate the pain point and see how the market is dealing with, compensating for, or otherwise working around that specific problem. Next, we determine if the market participants are willing to pay for a solution to the problem. If they see value, then we solve the problem.

Of course, it’s never that simple, but that’s the basic process in a nutshell. Atlanta entrepreneur David Cummings recently wrote that this process, from discovering the problem to getting to product market fit, generally takes about two years . Finding a problem is usually fairly clear. Validating the problem takes longer. Finding customers who are willing to pay takes a little longer, and building a product that fits the market takes a long time and usually includes several pivots or small deviations from the original product idea.

At the core of everything involved in creating a startup is the customer pain point. But many times, the best product for solving that problem doesn’t win. Why? Because the makers of that solution are really good at solving said problem, but not good at all at explaining what exactly the problem is or what its root cause consists of. In other words, the entrepreneur who can communicate better usually wins. That is why it is so vitally important to be able to explain the problem you are solving to anyone so that they understand it completely. But how do you do that?

Here’s an example from a startup that is growing out of the campus of Georgia Tech in Atlanta:

Cloud computing drives the use of data centers by global players like Amazon, Google, and Apple. The data center market is growing 40% annually and can’t keep up with demand, but each data center wastes millions of dollars in energy each year using “set it and forget it” cooling practices completely unrelated to the actual temperatures of the individual devices in the data center.

Let’s break this problem statement for startup businesses down:

1. Be absolutely as specific as possible.

The problem itself is very specific: “each data center wastes millions of dollars in energy each year.”

2. Clearly identify your target market.

The market segment is very clear: data centers.

3. Define the size of the market and the specific problem.

“Cloud computing drives the use of data centers by global players like Amazon, Google, and Apple. The data center market is growing 40% annually and can’t keep up with demand.” This is clearly a growth market, and anyone with a mobile device can  understand “cloud computing” as the basis of this market segment’s growth.

4. Define the current (bad) solution.

“Set it and forget it cooling practices completely unrelated to the actual temperatures of the individual devices in the data center.”

5. Remove all instances of the words “we” or “I.”

This final point is probably the most important. The problem statement has nothing whatsoever to do with you . You are creating a solution to this problem, but the problem lies in the market space, and the current players in the market are experiencing the pain that results from this problem. In this case, the “pain” is millions of dollars of wasted energy annually from each individual data center.

Your main target audience is your potential customer, and your problem statement is all about their pain! The goal of the problem statement is to very clearly demonstrate empathy with the pain that your target customer experiences every day. Once you’ve clearly articulated the problem, where it exists, how big it is, and how bad the current solution is, you’ve set the stage to explain in equally simple terms why you are best qualified to solve the problem and how you intend to do so.

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Why Problem-Solving Skills Are Essential for Leaders in Any Industry

• 17 Jan 2023

Any organization offering a product or service is in the business of solving problems.

Whether providing medical care to address health issues or quick convenience to those hungry for dinner, a business’s purpose is to satisfy customer needs .

In addition to solving customers’ problems, you’ll undoubtedly encounter challenges within your organization as it evolves to meet customer needs. You’re likely to experience growing pains in the form of missed targets, unattained goals, and team disagreements.

Yet, the ubiquity of problems doesn’t have to be discouraging; with the right frameworks and tools, you can build the skills to solve consumers' and your organization’s most challenging issues.

Here’s a primer on problem-solving in business, why it’s important, the skills you need, and how to build them.

Access your free e-book today.

What Is Problem-Solving in Business?

Problem-solving is the process of systematically removing barriers that prevent you or others from reaching goals.

Your business removes obstacles in customers’ lives through its products or services, just as you can remove obstacles that keep your team from achieving business goals.

Design Thinking

Design thinking , as described by Harvard Business School Dean Srikant Datar in the online course Design Thinking and Innovation , is a human-centered , solutions-based approach to problem-solving and innovation. Originally created for product design, design thinking’s use case has evolved . It’s now used to solve internal business problems, too.

The design thinking process has four stages :

• Clarify: Clarify a problem through research and feedback from those impacted.
• Ideate: Armed with new insights, generate as many solutions as possible.
• Develop: Combine and cull your ideas into a short list of viable, feasible, and desirable options before building prototypes (if making physical products) and creating a plan of action (if solving an intangible problem).
• Implement: Execute the strongest idea, ensuring clear communication with all stakeholders about its potential value and deliberate reasoning.

Using this framework, you can generate innovative ideas that wouldn’t have surfaced otherwise.

Creative Problem-Solving

Another, less structured approach to challenges is creative problem-solving , which employs a series of exercises to explore open-ended solutions and develop new perspectives. This is especially useful when a problem’s root cause has yet to be defined.

You can use creative problem-solving tools in design thinking’s “ideate” stage, which include:

• Brainstorming: Instruct everyone to develop as many ideas as possible in an allotted time frame without passing judgment.
• Divergent thinking exercises: Rather than arriving at the same conclusion (convergent thinking), instruct everyone to come up with a unique idea for a given prompt (divergent thinking). This type of exercise helps avoid the tendency to agree with others’ ideas without considering alternatives.
• Alternate worlds: Ask your team to consider how various personas would manage the problem. For instance, how would a pilot approach it? What about a young child? What about a seasoned engineer?

It can be tempting to fall back on how problems have been solved before, especially if they worked well. However, if you’re striving for innovation, relying on existing systems can stunt your company’s growth.

Related: How to Be a More Creative Problem-Solver at Work: 8 Tips

Why Is Problem-Solving Important for Leaders?

While obstacles’ specifics vary between industries, strong problem-solving skills are crucial for leaders in any field.

Whether building a new product or dealing with internal issues, you’re bound to come up against challenges. Having frameworks and tools at your disposal when they arise can turn issues into opportunities.

As a leader, it’s rarely your responsibility to solve a problem single-handedly, so it’s crucial to know how to empower employees to work together to find the best solution.

Your job is to guide them through each step of the framework and set the parameters and prompts within which they can be creative. Then, you can develop a list of ideas together, test the best ones, and implement the chosen solution.

Related: 5 Design Thinking Skills for Business Professionals

4 Problem-Solving Skills All Leaders Need

1. problem framing.

One key skill for any leader is framing problems in a way that makes sense for their organization. Problem framing is defined in Design Thinking and Innovation as determining the scope, context, and perspective of the problem you’re trying to solve.

“Before you begin to generate solutions for your problem, you must always think hard about how you’re going to frame that problem,” Datar says in the course.

For instance, imagine you work for a company that sells children’s sneakers, and sales have plummeted. When framing the problem, consider:

• What is the children’s sneaker market like right now?
• Should we improve the quality of our sneakers?
• Should we assess all children’s footwear?
• Is this a marketing issue for children’s sneakers specifically?
• Is this a bigger issue that impacts how we should market or produce all footwear?

While there’s no one right way to frame a problem, how you do can impact the solutions you generate. It’s imperative to accurately frame problems to align with organizational priorities and ensure your team generates useful ideas for your firm.

To solve a problem, you need to empathize with those impacted by it. Empathy is the ability to understand others’ emotions and experiences. While many believe empathy is a fixed trait, it’s a skill you can strengthen through practice.

When confronted with a problem, consider whom it impacts. Returning to the children’s sneaker example, think of who’s affected:

• Your organization’s employees, because sales are down
• The customers who typically buy your sneakers
• The children who typically wear your sneakers

Empathy is required to get to the problem’s root and consider each group’s perspective. Assuming someone’s perspective often isn’t accurate, so the best way to get that information is by collecting user feedback.

For instance, if you asked customers who typically buy your children’s sneakers why they’ve stopped, they could say, “A new brand of children’s sneakers came onto the market that have soles with more traction. I want my child to be as safe as possible, so I bought those instead.”

When someone shares their feelings and experiences, you have an opportunity to empathize with them. This can yield solutions to their problem that directly address its root and shows you care. In this case, you may design a new line of children’s sneakers with extremely grippy soles for added safety, knowing that’s what your customers care most about.

Related: 3 Effective Methods for Assessing Customer Needs

3. Breaking Cognitive Fixedness

Cognitive fixedness is a state of mind in which you examine situations through the lens of past experiences. This locks you into one mindset rather than allowing you to consider alternative possibilities.

For instance, your cognitive fixedness may make you think rubber is the only material for sneaker treads. What else could you use? Is there a grippier alternative you haven’t considered?

Problem-solving is all about overcoming cognitive fixedness. You not only need to foster this skill in yourself but among your team.

4. Creating a Psychologically Safe Environment

As a leader, it’s your job to create an environment conducive to problem-solving. In a psychologically safe environment, all team members feel comfortable bringing ideas to the table, which are likely influenced by their personal opinions and experiences.

If employees are penalized for “bad” ideas or chastised for questioning long-held procedures and systems, innovation has no place to take root.

By employing the design thinking framework and creative problem-solving exercises, you can foster a setting in which your team feels comfortable sharing ideas and new, innovative solutions can grow.

How to Build Problem-Solving Skills

The most obvious answer to how to build your problem-solving skills is perhaps the most intimidating: You must practice.

Again and again, you’ll encounter challenges, use creative problem-solving tools and design thinking frameworks, and assess results to learn what to do differently next time.

While most of your practice will occur within your organization, you can learn in a lower-stakes setting by taking an online course, such as Design Thinking and Innovation . Datar guides you through each tool and framework, presenting real-world business examples to help you envision how you would approach the same types of problems in your organization.

Are you interested in uncovering innovative solutions for your organization’s business problems? Explore Design Thinking and Innovation —one of our online entrepreneurship and innovation courses —to learn how to leverage proven frameworks and tools to solve challenges. Not sure which course is right for you? Download our free flowchart .

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Welcome to Part 2 of a three part series on starting your startup, adapted from our Giants Masterclass content.

In the first part of this series , we explored how to find and identify startup ideas. In Part 2 , we will walk through how to validate the idea you’ve identified as a problem and develop a hypothesis of the solution.

As we discussed in part one, there is nobody else with your unique experience, perspective and passions on the planet. To turn this idea into a business, you’ll need to validate it as a problem that enough people have (and will pay for) and validate a solution to this problem. Here are some ways to work through this at the earliest stages.

Start by fully focussing on the problem, not the solution

SafetyCulture ’s Matt Hinds shared how he uses design thinking to build products and services. Design thinking is a method of understanding and solving problems - despite the name, you don’t need to be a designer to apply this approach. One of the strengths of this approach is that it helps you to be problem-focused and solution agnostic . “At this stage, ‘I want to build an app’ isn’t the answer to a problem” says Matt. “The answer should be “what is this problem and how many ways could I solve this problem”?

As Matt explains, the core framework of design thinking is “fully immersing yourself in the customer’s shoes” - seeing how people who have the problem you’ve identified experience it, what they achieve, who they interact with.

Once you’ve empathised with your customers, you take everything you've generated and draw some insights. “You need to fully focus on the problem here” Matt says, “not go into solutions mode”. Next, define the ‘jobs to be done’ in response to the customers you interviewed. “If you don’t come through anything novel or breakthrough here, it might be an early sign that you’re building something for yourself or for nobody” says Matt.

Take a customer-driven approach to thinking about a solution

Angel investor and Flying Fox Ventures co-founder Rachael Neumann shared the nuances between hearing your customers (or at the earliest stages, your target users) and listening to them, and how to use these insights to build incredible products.

“Customers are terrible product designers” says Rachael, so it’s not about taking what your customers say verbatim, but inextricably linking what your customers are saying to how you address that in your product. This comes back to empathy - “look for the pain; what are they struggling with in this moment and what do they really need, not what they say they want” says Rachael. Customers are also “accidental liars” - the intention behaviour gap means “what we say we’re going to do and what we actually do doesn’t compute”. Instead of framing a customer question as “are you going to…” or “would you…” ask for customer examples of the type of behaviour you want to understand. Run an experiment to “prove that there’s a need and a want” and “don’t bet the farm on best intentions...root what you’re doing in actual data that you have seen happen before or can observe.”

This is a muscle that needs to be exercised from the very beginning and well into progressing on your idea into a product. Rachael recommends a system that can spin many times over and is constantly iterated. This doesn’t have to be complex, it could be just three simple steps - a mechanism to hear your customers, making a change based on that mechanism, and measuring the impact of this change.

Validate your initial solution as a set of hypotheses

Having helped pivot and grow Wish to one of the most prolific eCommerce startups in the world (and now as VP of Engineering at SeaChange ), engineer Adam Flynn recommends a “really disciplined series of experiments” to make bigger jumps through the product and figure out what users really want and work towards product-market fit.

Building on Rachael’s points around customer research, Adam recommends treating every idea as “an untested hypothesis”. “Being really really clear about ‘I know this because I tested it and proved it empirically’ compared to ‘I know this because I have experience in this space’ is incredibly powerful...if you can be good about being intellectually honest with yourself about what you know and what you don’t know, you can reframe things as questions”. This gives you the mindset to iterate and find the right solution more quickly. As Adam says, “if you double the amount of stuff you try...you’re doubling your chances of getting there”.

For every idea about your product (these could come back to the ‘jobs to be done’ framework Matt suggested), Adam recommends you phrase it as a hypothesis that can be tested. Instead of “we want to add a higher resolution camera to the iPhone to make people take beautiful photos,” try, “we expect that by increasing the resolution of the camera by 2 megapixels it will result in an average of 5.6 more photos being taken per person”.

Want more advice for starting out? We took these lessons from Giants , our free program for founders at the very beginning. If you’re working on a startup idea or taking your first steps as a founder, join Giants to get more practical guides plus mentoring from the best people from companies like Brighte, CultureAmp, SafetyCulture, Atlassian, Dovetail, Baraja, Airbnb, and Stripe, plus VCs, angels, and impact investors.

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As an entrepreneur, how confident are you that you fully understand your customer’s pain points or their job to be done? Entrepreneurs I first meet tend to start selling me on their solution before explaining the problem they are trying to solve. There is little evidence that they’ve done true discovery work to validate the problem or their target customers.

While gut feel or personal experience with a problem can be a strong signal there is a problem to solve, without proper product discovery work you won’t truly know if you have a winning solution.

For those who profess having done proper discovery to validate a problem but don’t yet have a product, my follow-up question is: “How do you know people or companies will use your product?” Answers are equally discouraging. More often than not, I hear examples of interest tests, such as hits on social media posts or answers to surveys that are so biased it’s hard to trust the results. Further, entrepreneurs may have a good hunch there’s a job to be done that needs improving or replacing, but they can’t describe where in the customer journey they can truly make an impact.

I’m a big fan of confident founders who are passionate about their idea, but a little humility and a lot of discovery work can determine whether there’s a winning solution and save a lot of wasted time and money building the wrong thing. If fundraising is also a consideration, being able to have real data vs. gut feelings and biased test results can be the difference between a modest angel round and a strongly led seed- or A-round.

I’ve recently written an in-depth look at this topic, Product Discovery 101 , which I encourage you to read. Here are some highlights.

Interest vs. problem testing

“We had 1,000 clicks on our Facebook ad in the first 48 hours.”

“Our conversion rate from click to sign-up was 50 percent.”

“We interviewed a bunch of people and they said they’d use our product if we built it.”

These quotes suggest the entrepreneurs may have found an audience interested enough to click on an ad and provide an email addresses, but they still haven’t proven anything about the usefulness of their product, that it solves a real pain point, or that their target customer is willing to pay for the fix. If you plan to do interest tests, here are several approaches (among many) to consider:

• Social media . Great for finding your audience, social outreach should be done on multiple platforms and carefully crafted to answer only one or two hypotheses. These hypotheses are commonly, “Is this where we can reach this audience if we want to market to them?” and “Are they interested enough to click and learn more?”
• Website landing pages . These are the best locations to capture interest, email addresses, and demographic data. If your potential customers found you through social media tests or googling, you’ve proven they were interested enough to learn more, that your search engine optimization works, and that they trust you or care enough about the problem you wish to solve that they’ll provide insight into who they are.
• Surveys . Surveys are difficult to design and often capture random and subjective information instead of getting real data to inform your product. Great surveys are 10 questions or less, reflective in nature (“How many times did you buy “X” in the last month?”) and data-centric (“How often do you order takeout for dinner?).

Problem validation

Early in the process, more important than interest tests are tests that validate there is a problem worth solving and where exactly a product can be most successful in solving that problem. Validating hypotheses about the problem through a variety of methods is going to lead to a far better outcome than clicks on a Facebook ad.

Consider trying these different types of problem-validation tests in your discovery process:

• Interviews . Similar to surveys, interviews are as much art as science. It is incredibly easy to lead a witness, bias answers, and hear what we want to hear in an interview. The best guide for conducting a proper discovery interview is Rob Fitzpatrick’s book The Mom Test , which I encourage every entrepreneur and product manager I work with to read.
• Ethnography . Observing prospects performing the job you hope to improve or replace can be extremely insightful. You may find hacks they would never tell you about in an interview or discover a whole new set of problems in their process.
• Emotional journaling or mapping . Having a prospect journal or map out their process and highlight how they feel along the way can pinpoint exactly where they are most frustrated in their process. This is also a great technique if you can’t observe the prospect in the setting where the problem exists.
• Journey mapping . Bring together all your discovery work to identify where you found patterns of highs and lows. These may surprise you; often, where you hypothesized there was the most pain in a process may be somewhere completely different.
• (Don’t do) focus groups . I am generally not a fan of this form of discovery. It lends itself to groupthink and can produce false results. Focus groups can be useful later in the product cycle when you want to get reactions to branding or observe groups of people using your product if it’s a tangible item.

Prototype testing

The best way to validate that a problem exists is to actually insert yourself into the process and learn by doing. These tests lean toward solution building, but the idea is that you’re doing tests without building anything, or building very little, to get clarity on the problem and the customer. Common forms of these tests include:

• Lo-fidelity concierge testing . Jump right in and assume part of the role that your product might fill in the future. If you were coming up with a new restaurant reservation system, this may involve a phone conversation with the party needing a reservation and having you do the actual booking for them, perhaps even texting them to confirm their reservation. The key to success of these early tests is to resist the temptation to correct your customer—just go with them on their user experience. You can tweak things along the way as you learn more about what works and what doesn’t.
• Wizard of Oz (WoZ) testing . WoZ allows you to test a product without the need for a fully built-out prototype. The customer won’t know that you are working behind the scenes to simulate the experience. A former student of mine with a software engineering background resisted the temptation to code a solution and instead created a WoZ test by cobbling together Soundcloud, Dropbox, texting, and a high-fidelity mock front-end. After dozens of people used this method and she understood what they needed, she officially built and launched the product .
• Prototypes . Build small runs of your future product using 3D printing, sewing, or even a pop-up restaurant as ways to test your concept and receive feedback before spending too much money.
• Competitive analogs . Having target customers use existing similar products can be as telling as using the product you hope to create. Try tools like UserTesting , which allows prospects to walk through how they use a current competitive product. Having target customers use a competitive product for a week or two can also be insightful.
• Expert testing . You may be working in an area where you are no expert, but you have a hunch it’s a white space ripe for disruption. If you don’t have access to the experts or their customers, find or create a space for them to connect and observe through their experiences. This could be as simple as finding them on Quora or Reddit and looking at threads of questions that are related to what you’re exploring.

Test early, test often!

With all the options available, there is no excuse for weak validation of problems and target customers early in your product development process. One test, or even a few tests, does not qualify a product as marketable or fundable. The more objective tests you do up front, and iterate on those tests often, the higher the likelihood you’ll land on a great solution that people want to use and buy. To see my full set of recommendations, visit Product Discovery 101 .

This blog post is largely inspired by my course, PM101 at Harvard Business School. I have open-sourced the syllabus for this course here .

About the author

Julia Austin is a Senior Lecturer in the Entrepreneurial Management Unit at the Harvard Business School.

[Image by: iStock Photo ]

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The Right Way to Solve Complex Business Problems

Corey Phelps, a strategy professor at McGill University, says great problem solvers are hard to find. Even seasoned professionals at the highest levels of organizations regularly...

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Corey Phelps, a strategy professor at McGill University, says great problem solvers are hard to find. Even seasoned professionals at the highest levels of organizations regularly fail to identify the real problem and instead jump to exploring solutions. Phelps identifies the common traps and outlines a research-proven method to solve problems effectively. He’s the coauthor of the book, Cracked it! How to solve big problems and sell solutions like top strategy consultants.

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Welcome to the IdeaCast from Harvard Business Review. I’m Curt Nickisch.

Problem-solving is in demand. It’s considered the top skill for success at management consulting firms. And it’s increasingly desired for everyone, not just new MBA’s.

A report from the World Economic Forum predicts that more than one-third of all jobs across all industries will require complex problem-solving as one of their core skills by 2020.

The problem is, we’re often really bad at problem-solving. Our guest today says even the most educated and experienced of senior leaders go about it the wrong way.

COREY PHELPS: I think this is one of the misnomers about problem-solving. There’s this belief that because we do it so frequently – and especially for senior leaders, they have a lot of experience, they solve problems for a living – and as such we would expect them to be quite good at it. And I think what we find is that they’re not. They don’t solve problems well because they fall prey to basically the foibles of being a human being – they fall prey to the cognitive biases and the pitfalls of problem-solving.

CURT NICKISCH: That’s Corey Phelps. He says fixing these foibles is possible and almost straightforward. You can improve your problem-solving skills by following a disciplined method.

Corey Phelps is a strategy professor at McGill University. He’s also the co-author of the book “Cracked It: How to Solve Big Problems and Sell Solutions like Top Strategy C onsultants.” Corey thanks for coming on the show.

COREY PHELPS: Thank you for the opportunity to talk.

CURT NICKISCH: Another probably many, many biases that prevent people from solving big problems well.

COREY PHELPS: Absolutely.

CURT NICKISCH: What are some of the most common, or your favorite stumbling blocks?

COREY PHELPS: Well, one of my favorites is essentially the problem of jumping to solutions or the challenge of jumping to solutions.

CURT NICKISCH: Oh, come on Corey. That’s so much fun.

COREY PHELPS: It is, and it’s very much a result of how our brains have evolved to process information, but it’s my favorite because we all do it. And especially I would say it happens in organizations because in organizations when you layer on these time pressures and you layer on these concerns about efficiency and productivity, it creates enormous, I would say incentive to say “I don’t have time to carefully define and analyze the problem. I got to get a solution. I got to implement it as quick as possible.” And the fundamental bias I think is, is illustrated beautifully by Danny Kahneman in his book “Thinking, Fast and Slow,” is that our minds are essentially hardwired to think fast.

We are able to pay attention to a tiny little bit of information. We can then weave a very coherent story that makes sense to us. And then we can use that story to jump very quickly to a solution that we just know will work. And if we just were able to move from that approach of what Kahneman and cognitive psychologists called “System 1 thinking” to “System 2 thinking” – that is to slow down, be more deliberative, be more structured – we would be able to better understand the problem that we’re trying to solve and be more effective and exhaustive with the tools that we want to use to understand the problem before we actually go into solution-generation mode.

CURT NICKISCH: Complex problems demand different areas of expertise and often as individuals we’re coming to those problems with one of them. And I wonder if that’s often the problem of problem-solving, which is that a manager is approaching it from their own expertise and because of that, they see the problem through a certain way. Is that one of the cognitive biases that stop people from being effective problem solvers?

COREY PHELPS: Yeah. That’s often referred to as the expertise trap. It basically colors and influences what we pay attention to with respect to a particular problem. And it limits us with respect to the tools that we can bring to bear to solve that problem. In the world of psychology, there’s famous psychologist, Abraham Maslow, who is famous for the hierarchy of needs. He’s also famous for something that was a also known as MaSlow’s axiom, Maslow’s law. It’s also called the law of the instrument, and to paraphrase Maslow, he basically said, “Look, I suppose if the only tool that you have in your toolkit is a hammer, everything looks like a nail.”

His point is that if you’re, for example, a finance expert and your toolkit is the toolkit of let’s say, discounted cash flow analysis for valuation, then you’re going to see problems through that very narrow lens. Now, one of the ways out of this, I think to your point is collaboration becomes fundamentally important. And collaboration starts with the recognition that I don’t have all of the tools, all of the knowledge in me to effectively solve this. So I need to recruit people that can actually help me.

CURT NICKISCH: That’s really interesting. I wonder how much the fact that you have solved a problem before it makes you have a bias for that same solution for future problems?

COREY PHELPS: Yeah, that’s a great question. What you’re alluding to is analogical reasoning, and we know that human beings, one of the things that allows us to operate in novel settings is that we can draw on our past experience. And we do so when it comes to problem solving, often times without being conscious or mentally aware of it. We reach into our memory and we ask ourselves a very simple question: “Have I seen a problem like this before?”

And if it looks familiar to me, the tendency then is to say, “Okay, well what worked in solving that problem that I faced before?” And then to say, “Well, if it worked in that setting, then it should work in this setting.” So that’s reasoning by analogy.

Reasoning by analogy has a great upside. It allows human beings to not become overwhelmed by the tremendous novelty that they face in their daily lives. The downside is that if we don’t truly understand it at sort of a deep level, whether or not the two problems are similar or different, then we can make what cognitive psychologists called surface-level analogies.

And we can then say, “Oh, this looks a lot like the problem I faced before, that solution that worked there is going to easily work here.” And we try that solution and it fails and it fails largely because if we dug a little bit deeper, the two problems actually aren’t much alike at all in terms of their underlying causes.

CURT NICKISCH: The starkest example of this, I think, in your book is Ron Johnson who left Apple to become CEO of JC Penney. Can you talk about that a little bit and what that episode for the company says about this?

COREY PHELPS: So yes, its – Ron Johnson had been hired away from Target in the United States to, by Steve Jobs to help create Apple stores. Apple stores are as many people know the most successful physical retailer on the planet measured by, for example, sales per square foot or per square meter. He’s got the golden touch. He’s created this tremendously successful retail format for Apple.

So the day that it was announced that Ron Johnson was going to step into the CEO role at JC Penney, the stock price of JC Penney went up by almost 18 percent. So clearly he was viewed as the savior. Johnson moves very, very quickly. Within a few months, he announces that he has a strategic plan and it basically comes in three parts.

Part number one is he’s going to eliminate discount pricing. JC Penney had been a very aggressive sales promoter. The second piece of it is he’s going to completely change how they organize merchandise. It’s no longer going to be organized by function – so menswear, housewares, those sorts of things. It’s going to be organized by boutique, so there’s going to be a Levi’s boutique, a Martha Stewart Boutique, a Joe Fresh Boutique and so on.

And it would drop the JC P enney name, they would call it JCP. And he rolls this out over the course of about 12 months across the entire chain of over 1100 stores. What this tells us, he’s so confident in his solution, his strategic transformation, that he doesn’t think it’s worth it to test this out on one or two pilot stores.

CURT NICKISCH: Yeah, he was quoted as saying: “At Apple, we didn’t test anything.”

COREY PHELPS: We didn’t test. Yes. What worked at Apple, he assumed would work at JC Penney. And the critical thing that I think he missed is that JC Penney customers are very different from Apple store customers. In fact, JC Penney customers love the discount. They love the thrill of hunting for a deal.

CURT NICKISCH: Which seems so fundamental to business, right? Understanding your customer. It’s just kind of shocking, I guess, to hear the story.

COREY PHELPS: It is shocking and especially when you consider that Ron Johnson had spent his entire career in retail, so this is someone that had faced, had seen, problems in retailers for decades – for over three decades by the time that he got to JC Penney. So you would expect someone with that degree of experience in that industry wouldn’t make that leap of, well, what worked at Apple stores is going to work at JC Penney stores, but in fact that’s exactly what happened.

CURT NICKISCH: In your book, you essentially suggest four steps that you recommend people use. Tell us about the four steps then.

COREY PHELPS: So in the book we describe what we call the “Four S method,” so four stages, each of which starts with the letter “s”. So the first stage is “state the problem.” Stating the problem is fundamentally about defining what the problem is that you are attempting to solve.

CURT NICKISCH: And you probably would say don’t hurry over that first step or the other three are going to be kind of pointless.

COREY PHELPS: Yeah, that’s exactly the point of of laying out the four s’s. There’s a tremendous amount of desire even amongst senior executives to want to get in and fix the problem. In other words, what’s the trouble? What are the symptoms? What would define success? What are the constraints that we would be operating under? Who owns the problem? And then who are the key stakeholders?

Oftentimes that step is skipped over and we go right into, “I’ve got a hypothesis about what I think the solution is and I’m so obsessed with getting this thing fixed quickly, I’m not going to bother to analyze it particularly well or test the validity of my assumptions. I’m going to go right into implementation mode.”

The second step, what we call “structure the problem” is once you have defined the problem, you need to then start to identify what are the potential causes of that problem. So there are different tools that we talked about in the book that you can structure a problem for analysis. Once you’ve structured the problem for analysis and you’ve conducted the analysis that helps you identify what are the underlying causes that are contributing to it, which will then inform the third stage which is generating solutions for the problem and then testing and evaluating those solutions.

CURT NICKISCH: Is the danger that that third step – generating solutions – is the step that people spend the most time on or have the most fun with?

COREY PHELPS: Yeah. The danger is, is that what that’s naturally what people gravitate towards. So we want to skip over the first two, state and structure.

CURT NICKISCH: As soon as you said it, I was like, “let’s talk about that more.”

COREY PHELPS: Yeah. And we want to jump right into solutioning because people love to talk about their ideas that are going to fix the problem. And that’s actually a useful way to frame a discussion about solutions – we could, or we might do this – because it opens up possibilities for experimentation.

And the problem is that when we often talk about what we could do, we have very little understanding of what the problem is that we’re trying to solve and what are the underlying causes of that problem. Because as you said, solution generation is fun. Look, the classic example is brainstorming. Let’s get a bunch of people in a room and let’s talk about the ideas on how to fix this thing. And again, be deliberate, be disciplined. Do those first stages, the first two stages – state and structure – before you get into the solution generation phase.

CURT NICKISCH: Yeah. The other thing that often happens there is just the lack of awareness of just the cost of the different solutions – how much time, or what they would actually take to do.

COREY PHELPS: Yeah, and again, I’ll go back to that example I used of brainstorming where it’s fun to get a group of people together and talk about our ideas and how to fix the problem. There’s a couple challenges of that. One is what often happens when we do that is we tend to censor the solutions that we come up with. In other words, we ask ourselves, “if I say this idea, people are gonna, think I’m crazy, or people going to say: that’s stupid, that’ll never work, we can’t do that in our organization. It’s going to be too expensive, it’s going to take too much time. We don’t have the resources to do it.”

So brainstorming downside is we we self-sensor, so that’s where you need to have deep insight into your organization in terms of A. what’s going to be feasible, B. what’s going to be desirable on the part of the people that actually have the problem, who you’re trying to solve the problem for and C. from a business standpoint, is it going to be financially attractive for us?

So applying again a set of disciplined criteria that help you choose amongst those ideas for potential solutions. Then the last stage of the process which is selling – because it’s rare in any organization that someone or the group of people that come up with the solution actually have the power and the resources to implement it, so that means they’re going to have to persuade other people to buy into it and want to help.

CURT NICKISCH: Design thinking is another really different method essentially for solving problems or coming up with solutions that just aren’t arrived at through usual problem-solving or usual decision-making processes. I’m just wondering how design thinking comes to play when you’re also outlining these, you know, disciplined methods for stating and solving problems.

COREY PHELPS: For us it’s about choosing the right approach. You know what the potential causes of a problem are. You just don’t know which ones are operating in the particular problem you’re trying to solve. And what that means is that you’ve got a theory – and this is largely the world of strategy consultants – strategy consultants have theories. They have, if you hear them speak, deep understanding of different types of organizational problems, and what they bring is an analytic tool kit that says, “first we’re going to identify all the possible problems, all the possible causes I should say, of this problem. We’re going to figure out which ones are operating and we’re going to use that to come up with a solution.” Then you’ve got problems that you have no idea what the causes are. You’re in a world of unknown unknowns or unk-unks as the operations management people call them.

CURT NICKISCH: That’s terrible.

COREY PHELPS: In other words, you don’t have a theory. So the question is, how do you begin? Well, this is where design thinking can be quite valuable. Design thinking says: first off, let’s find out who are the human beings, the people that are actually experiencing this problem, and let’s go out and let’s talk to them. Let’s observe them. Let’s immerse ourselves in their experience and let’s start to develop an understanding of the causes of the problem from their perspective.

So rather than go into it and say, “I have a theory,” let’s go the design thinking route and let’s actually based upon interactions with users or customers, let’s actually develop a theory. And then we’ll use our new understanding or new insight into the causes of the problem to move into the solution generation phase.

CURT NICKISCH: Problem-solving – we know that that’s something that employers look for when they’re recruiting people. It is one of those phrases that, you know, I’m sure somebody out there has, has the title at a company Chief Problem Solver instead of CEO, right? So, it’s almost one of those phrases that so over used it can lose its meaning.

And if you are being hired or you’re trying to make a case for being on a team that’s tackling a problem, how do you make a compelling case that you are a good problem solver? How can you actually show it?

COREY PHELPS: It’s a great question and then I have two answers to this question. So one is, look at the end of the day, the proof is in the pudding. In other words, can you point to successful solutions that you’ve come up with – solutions that have actually been effective in solving a problem? So that’s one.

The second thing is can you actually articulate how you approach problem-solving? In other words, do you follow a method or are you reinventing the wheel every time you solve a problem? Is it an ad hoc approach? And I think this issue really comes to a head when it comes to the world of strategy consulting firms when they recruit. For example, Mckinsey, you’ve got the Mckinsey problem-solving test, which is again, a test that’s actually trying to elicit the extent to which people are good applicants are good at solving problems

And then you’ve got the case interview. And in the case interview, what they’re looking at is do you have a mastery over certain tools. But what they’re really looking at is, are you actually following a logical process to solve this problem? Because again, what they’re interested in is finding- to your point – people that are going to be good at solving complex organizational problems. So they’re trying to get some evidence that they can demonstrate that they’re good at it and some evidence that they follow a deliberate process.

CURT NICKISCH: So even if you’re not interviewing at a consulting firm, that’s a good approach, to show your thinking, show your process, show the questions you ask?

COREY PHELPS: Yeah, and to your point earlier, at least if we look at what recruiters of MBA students are saying these days, they’re saying, for example, according to the FT’s recent survey, they’re saying that we want people with really good problem solving skills, and by the same token, we find that that’s a skill that’s difficult for us to recruit for. And that reinforces our interest in this area because the fundamental idea for the book is to give people a method. We’re trying to equip not just MBA students but everybody that’s going to face complex problems with a toolkit to solve them better.

CURT NICKISCH: Corey, this has been really great. Thank you.

COREY PHELPS: Thanks for the opportunity. I appreciate it.

CURT NICKISCH: That’s Corey Phelps. He teaches strategy at McGill University, and he co-wrote the book “Cracked It: How to Solve Big Problems and Sell Solutions Like Top Strategy Consultants.”

This episode was produced by Mary Dooe. We got technical help from Rob Eckhardt. Adam Buchholz is our audio product manager.

Thanks for listening to the HBR IdeaCast. I’m Curt Nickisch.

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This article is about decision making and problem solving, partner center.

Six problem-solving mindsets for very uncertain times

Great problem solvers are made, not born. That’s what we’ve found after decades of problem solving with leaders across business, nonprofit, and policy sectors. These leaders learn to adopt a particularly open and curious mindset, and adhere to a systematic process for cracking even the most inscrutable problems. They’re terrific problem solvers under any conditions. And when conditions of uncertainty are at their peak, they’re at their brilliant best.

Six mutually reinforcing approaches underly their success: (1) being ever-curious about every element of a problem; (2) being imperfectionists , with a high tolerance for ambiguity; (3) having a “dragonfly eye” view of the world, to see through multiple lenses; (4) pursuing occurrent behavior and experimenting relentlessly; (5) tapping into the collective intelligence , acknowledging that the smartest people are not in the room; and (6) practicing “show and tell” because storytelling begets action (exhibit).

Here’s how they do it.

1. Be ever-curious

As any parent knows, four-year-olds are unceasing askers. Think of the never-ending “whys” that make little children so delightful—and relentless. For the very young, everything is new and wildly uncertain. But they’re on a mission of discovery, and they’re determined to figure things out. And they’re good at it! That high-energy inquisitiveness is why we have high shelves and childproof bottles.

When you face radical uncertainty, remember your four-year-old or channel the four-year-old within you. Relentlessly ask, “Why is this so?” Unfortunately, somewhere between preschool and the boardroom, we tend to stop asking. Our brains make sense of massive numbers of data points by imposing patterns that have worked for us and other humans in the past. That’s why a simple technique, worth employing at the beginning of problem solving, is simply to pause and ask why conditions or assumptions are so until you arrive at the root of the problem. 1 This approach was originally developed by Sakichi Toyoda, the founder of Toyota.

Natural human biases in decision making, including confirmation, availability, and anchoring biases, often cause us to shut down the range of solutions too early. 2 Daniel Kahneman, Thinking, Fast and Slow , New York, NY: Farrar, Straus and Giroux, 2011. Better—and more creative—solutions come from being curious about the broader range of potential answers.

One simple suggestion from author and economist Caroline Webb to generate more curiosity in team problem solving is to put a question mark behind your initial hypotheses or first-cut answers. This small artifice is surprisingly powerful: it tends to encourage multiple solution paths and puts the focus, correctly, on assembling evidence. We also like thesis/antithesis, or red team/blue team, sessions, in which you divide a group into opposing teams that argue against the early answers—typically, more traditional conclusions that are more likely to come from a conventional pattern. Why is this solution better? Why not that one? We’ve found that better results come from embracing uncertainty. Curiosity is the engine of creativity.

We have to be comfortable with estimating probabilities to make good decisions, even when these guesses are imperfect. Unfortunately, we have truckloads of evidence showing that human beings aren’t good intuitive statisticians.

2. Tolerate ambiguity—and stay humble!

When we think of problem solvers, many of us tend to picture a poised and brilliant engineer. We may imagine a mastermind who knows what she’s doing and approaches a problem with purpose. The reality, though, is that most good problem solving has a lot of trial and error; it’s more like the apparent randomness of rugby than the precision of linear programming. We form hypotheses, porpoise into the data, and then surface and refine (or throw out) our initial guess at the answer. This above all requires an embrace of imperfection and a tolerance for ambiguity—and a gambler’s sense of probabilities.

The real world is highly uncertain. Reality unfolds as the complex product of stochastic events and human reactions. The impact of COVID-19 is but one example: we address the health and economic effects of the disease, and their complex interactions, with almost no prior knowledge. We have to be comfortable with estimating probabilities to make good decisions, even when these guesses are imperfect. Unfortunately, we have truckloads of evidence showing that human beings aren’t good intuitive statisticians. Guesses based on gut instinct can be wildly wrong. That’s why one of the keys to operating in uncertain environments is epistemic humility, which Erik Angner defines as “the realization that our knowledge is always provisional and incomplete—and that it might require revision in light of new evidence.” 3 Erik Angner, “Epistemic humility—knowing your limits in a pandemic,” Behavioral Scientist , April 13, 2020, behavioralscientist.org.

Recent research shows that we are better at solving problems when we think in terms of odds rather than certainties. 4 Annie Duke, Thinking in Terms of Bets: Making Smarter Decisions When You Don’t Have All the Facts , New York, NY: Portfolio/Penguin, 2018. For example, when the Australian research body Commonwealth Scientific and Industrial Research Organisation (CSIRO), which owned a core patent on the wireless internet protocol, sought royalties from major companies, it was initially rebuffed. The CSIRO bet that it could go to court to protect its intellectual property because it estimated that it needed only 10 percent odds of success for this to be a good wager, given the legal costs and likely payoff. It improved its odds by picking the weakest of the IP violators and selecting a legal jurisdiction that favored plaintiffs. This probabilistic thinking paid off and eventually led to settlements to CSIRO exceeding $500 million. 5 CSIRO briefing to US Government, December 5, 2006. A tolerance for ambiguity and a willingness to play the odds helped the organization feel its way to a good solution path.

To embrace imperfectionism with epistemic humility, start by challenging solutions that imply certainty. You can do that in the nicest way by asking questions such as “What would we have to believe for this to be true?” This brings to the surface implicit assumptions about probabilities and makes it easier to assess alternatives. When uncertainty is high, see if you can make small moves or acquire information at a reasonable cost to edge out into a solution set. Perfect knowledge is in short supply, particularly for complex business and societal problems. Embracing imperfection can lead to more effective problem solving. It’s practically a must in situations of high uncertainty, such as the beginning of a problem-solving process or during an emergency.

Good problem solving typically involves designing experiments to reduce key uncertainties. Each move provides additional information and builds capabilities.

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3. take a dragonfly-eye view.

Dragonfly-eye perception is common to great problem solvers. Dragonflies have large, compound eyes, with thousands of lenses and photoreceptors sensitive to different wavelengths of light. Although we don’t know exactly how their insect brains process all this visual information, by analogy they see multiple perspectives not available to humans. The idea of a dragonfly eye taking in 360 degrees of perception 6 Philip Tetlock and Dan Gardner, Superforecasting: The Art and Science of Prediction , New York, NY: Crown, 2015. is an attribute of “superforecasters”—people, often without domain expertise, who are the best at forecasting events.

Think of this as widening the aperture on a problem or viewing it through multiple lenses. The object is to see beyond the familiar tropes into which our pattern-recognizing brains want to assemble perceptions. By widening the aperture, we can identify threats or opportunities beyond the periphery of vision.

Consider the outbreak of HIV in India in the early 1990s—a major public-health threat. Ashok Alexander, director of the Bill & Melinda Gates Foundation’s India Aids Initiative, provided a brilliant example of not just vision but also dragonfly vision. Facing a complex social map with a rapidly increasing infection rate, he widened the problem’s definition, from a traditional epidemiological HIV transmission model at known “hot spots,” to one in which sex workers facing violence were made the centerpiece.

This approach led to the “Avahan solution,” which addressed a broader set of leverage points by including the sociocultural context of sex work. The solution was rolled out to more than 600 communities and eventually credited with preventing 600,000 infections. The narrow medical perspective was sensible and expected, but it didn’t tap into the related issue of violence against sex workers, which yielded a richer solution set. Often, a secret unlocks itself only when one looks at a problem from multiple perspectives, including some that initially seem orthogonal.

The secret to developing a dragonfly-eye view is to “anchor outside” rather than inside when faced with problems of uncertainty and opportunity. Take the broader ecosystem as a starting point. That will encourage you to talk with customers, suppliers, or, better yet, players in a different but related industry or space. Going through the customer journey with design-thinking in mind is another powerful way to get a 360-degree view of a problem. But take note: when decision makers face highly constrained time frames or resources, they may have to narrow the aperture and deliver a tight, conventional answer.

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4. pursue occurrent behavior.

Occurrent behavior is what actually happens in a time and place, not what was potential or predicted behavior. Complex problems don’t give up their secrets easily. But that shouldn’t deter problem solvers from exploring whether evidence on the facets of a solution can be observed, or running experiments to test hypotheses. You can think of this approach as creating data rather than just looking for what has been collected already. It’s critical for new market entry—or new market creation. It also comes in handy should you find that crunching old data is leading to stale solutions.

Most of the problem-solving teams we are involved with have twin dilemmas of uncertainty and complexity, at times combined as truly “wicked problems.” 7 A term coined in a now famous 1973 article: Horst W. J. Rittel and Melvin Webber, “Dilemmas in a general theory of planning,” Policy Sciences , 1973, Number 4, pp. 155–69. For companies ambitious to win in the great unknown in an emerging segment—such as electric cars or autonomous vehicles, where the market isn’t fully established—good problem solving typically involves designing experiments to reduce key uncertainties, not just relying on existing data. Each move (such as buying IP or acquiring a component supplier) and each experiment (including on-road closed tests) not only provides additional information to make decisions but also builds capabilities and assets that support further steps. Over time, their experiments, including alliances and acquisitions, come to resemble staircases that lead to either the goal or to abandonment of the goal. Problem-solving organizations can “bootstrap” themselves into highly uncertain new spaces, building information, foundational assets, and confidence as they take steps forward.

Risk-embracing problem solvers find a solution path by constantly experimenting. Statisticians use the abbreviation EVPI—the expected value of perfect information—to show the value of gaining additional information that typically comes from samples and experiments, such as responses to price changes in particular markets. A/B testing is a powerful tool for experimenting with prices, promotions, and other features and is particularly useful for digital marketplaces and consumer goods. Online marketplaces make A/B testing easy. Yet most conventional markets also offer opportunities to mimic the market’s segmentation and use it to test different approaches.

The mindset required to be a restless experimenter is consistent with the notion in start-ups of “failing fast.” It means that you get product and customer affirmation or rejection quickly through beta tests and trial offerings. Don’t take a lack of external data as an impediment—it may actually be a gift, since purchasable data is almost always from a conventional way of meeting needs, and is available to your competitors too. Your own experiments allow you to generate your own data; this gives you insights that others don’t have. If it is difficult (or unethical) to experiment, look for the “natural experiments” provided by different policies in similar locations. An example would be to compare outcomes in twin cities, such as Minneapolis–St. Paul.

It’s a mistake to think that your team has the smartest people in the room. They aren’t there. They’re invariably somewhere else. Nor do they need to be there if you can access their intelligence via other means.

5. Tap into collective intelligence and the wisdom of the crowd

Chris Bradley, a coauthor of Strategy Beyond the Hockey Stick , 8 Chris Bradley, Marin Hirt, and Sven Smit, Strategy Beyond the Hockey Stick: People, Probabilities, and Big Moves to Beat the Odds , Hoboken, NJ: Wiley, 2018. observed that “it’s a mistake to think that on your team you have the smartest people in the room. They aren’t there. They’re invariably somewhere else.” 9 For more from Chris Bradley, in a conversation with Rob McLean, see “ Want better strategies? Become a bulletproof problem solver ,” August 2019. Nor do they need to be there if you can access their intelligence via other means. In an ever-changing world where conditions can evolve unpredictably, crowdsourcing invites the smartest people in the world to work with you. For example, in seeking a machine-learning algorithm to identify fish catch species and quantities on fishing boats, the Nature Conservancy (TNC) turned to Kaggle and offered a $150,000 prize for the best algorithm. This offer attracted 2,293 teams from all over the world. TNC now uses the winning algorithm to identify fish types and sizes caught on fishing boats in Asia to protect endangered Pacific tuna and other species.

Crowdsourced problem solving is familiar in another guise: benchmarking. When Sir Rod Carnegie was CEO of Conzinc Riotinto Australia (CRA), he was concerned about the costs of unscheduled downtime with heavy trucks, particularly those requiring tire changes. He asked his management team who was best in the world at changing tires; their answer was Formula One, the auto racing competition. A team traveled to the United Kingdom to learn best practice for tire changes in racetrack pits and then implemented what it learned thousands of miles away, in the Pilbara region of Western Australia. The smartest team for this problem wasn’t in the mining industry at all.

Of course, while crowdsourcing can be useful when conventional thinking yields solutions that are too expensive or incomplete for the challenge at hand, it has its limitations. Good crowdsourcing takes time to set up, can be expensive, and may signal to your competitors what you are up to. Beware of hidden costs, such as inadvertently divulging information and having to sieve through huge volumes of irrelevant, inferior suggestions to find the rare gem of a solution.

Accept that it’s OK to draw on diverse experiences and expertise other than your own. Start with brainstorming sessions that engage people from outside your team. Try broader crowdsourcing competitions to generate ideas. Or bring in deep-learning talent to see what insights exist in your data that conventional approaches haven’t brought to light. The broader the circles of information you access, the more likely it is that your solutions will be novel and creative.

Rookie problem solvers show you their analytic process and math to convince you they are clever. Seasoned problem solvers show you differently.

6. Show and tell to drive action

We started our list of mindsets with a reference to children, and we return to children now, with “show and tell.” As you no doubt remember—back when you were more curious!—show and tell is an elementary-school activity. It’s not usually associated with problem solving, but it probably piqued your interest. In fact, this approach is critical to problem solving. Show and tell is how you connect your audience with the problem and then use combinations of logic and persuasion to get action.

The show-and-tell mindset aims to bring decision makers into a problem-solving domain you have created. A team from the Nature Conservancy, for instance, was presenting a proposal asking a philanthropic foundation to support the restoration of oyster reefs. Before the presentation, the team brought 17 plastic buckets of water into the boardroom and placed them around the perimeter. When the foundation’s staff members entered the room, they immediately wanted to know what the buckets were for. The team explained that oyster-reef restoration massively improves water quality because each oyster filters 17 buckets of water per day. Fish stocks improve, and oysters can also be harvested to help make the economics work. The decision makers were brought into the problem-solving domain through show and tell. They approved the funding requested and loved the physical dimension of the problem they were part of solving.

Rookie problem solvers show you their analytic process and mathematics to convince you that they are clever. That’s sometimes called APK, the anxious parade of knowledge. But seasoned problem solvers show you differently. The most elegant problem solving is that which makes the solution obvious. The late economist Herb Simon put it this way: “Solving a problem simply means representing it so as to make the solution transparent.” 10 Herbert Simon, The Sciences of the Artificial , Cambridge, MA: MIT Press, 1969.

To get better at show and tell, start by being clear about the action that should flow from your problem solving and findings: the governing idea for change. Then find a way to present your logic visually so that the path to answers can be debated and embraced. Present the argument emotionally as well as logically, and show why the preferred action offers an attractive balance between risks and rewards. But don’t stop there. Spell out the risks of inaction, which often have a higher cost than imperfect actions have.

The mindsets of great problem solvers are just as important as the methods they employ. A mindset that encourages curiosity, embraces imperfection, rewards a dragonfly-eye view of the problem, creates new data from experiments and collective intelligence, and drives action through compelling show-and-tell storytelling creates radical new possibilities under high levels of unpredictability. Of course, these approaches can be helpful in a broad range of circumstances, but in times of massive uncertainty, they are essential.

Charles Conn is an alumnus of McKinsey’s Sydney office and is a board member of Patagonia and former CEO of the Rhodes Trust. Robert McLean is an alumnus of the Sydney office and is the advisory-board chair of the Nature Conservancy Australia. They are the authors of Bulletproof Problem Solving: The One Skill That Changes Everything (Wiley, 2018).

This article was edited by David Schwartz, an executive editor in the Tel Aviv office.

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Entrepreneurs: Here Is How You Can Find Problems to Solve

Before you start building a company, determine the problem you're solving..

One of the most common (and deadly) mistakes in entrepreneurship is creating a solution before identifying the problem.

You might think you have the next big idea, but have you really done the research to see if it could be successful? Is there a need in the marketplace? Is the space full of slow-moving companies unwilling to change? Then maybe you have an opportunity. If not, you might be wasting money and time.

If you really want to obtain success, the first thing you need to do is find the problem to solve. The problem serves as the foundation for your company.

What is needed + what you can do

It can be very tempting to jump on the next hot idea you have, but so many people fail with fly-by-night operations that have no mission or framework.

Before starting your next company, take a step back and assess two things: the marketplace and your abilities.

Think hard about this. Starting a company is equal parts passion and planning. You need the motivation for both.

First ask yourself, what are you passionate about? Next, what does society (or even just your local neighborhood) need?

The ideal company idea must check off both of those boxes. If you're working hard to fulfill a need, but you hate the work, you'll just end up resenting the company and starting over. If you're building a passion project, but there's no need for the product or service you're offering, generating interest and sales will be impossible.

Still stumped? Here are some of the biggest necessities coming up in the world today: clean energy, robotics, cybersecurity, transportation and artificial intelligence. You'll see hundreds upon hundreds of companies trying to solve those emerging issues, but only a handful with the capability and drive to do so.

Define your problem

Now that you have a list or Venn diagram set up of things you're passionate about (and things that are needed), it's time to trim.

You can even rank your list based on how big the problem is. If you're going for that moonshot idea, make sure you have the skill and capacity to build it out. It's OK to start out small if you're new to this and just want to get your feet wet. If this isn't your first company, aim a little higher on your list.

Find the problem that you actively want to solve, that you are best suited to solve and that has significant opportunity built-in.

Know thy enemies

Once you have your problem in place, odds are someone has tried to solve that same problem.

Look back at companies who have failed to address this problem and figure out why they failed. Did they try to take on too much, too quickly? Was their price point way off target? Did their idea just come too soon, before the demand had matured?

You can use this information to not only avoid similar pitfalls, but to take your business even farther.

If there are still some active competitors in the space, take a hard look at what they offer and at what price. Maybe even have a friend purchase an item or use their service to see where they excel and where they fall short.

When I'm launching a new venture, I don't seek to merely exist among other competitors. I want to dominate the market. To do that, I need to know where I can do better than my competition.

Build your story

Before you start to build your company, you need to define your problem and explain your solution.

This is the thing you'll be telling to investors, friends, partners and people you network with. What is that burning hot idea inside you and how does your company solve that problem uniquely?

Find a way to tell your story in a way that you can repeat every day, without it ever growing old or stale. This is your passion.

Now you have a clearly defined problem, the factor that makes you stand out among the rest and the motivation to get it done. These are the elemental first steps that countless so-called entrepreneurs have skipped, finding only failure.

A refreshed look at leadership from the desk of CEO and chief content officer Stephanie Mehta

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6.1 Problem Solving to Find Entrepreneurial Solutions

Portions of the material in this section are based on original work by Geoffrey Graybeal and produced with support from the Rebus Community. The original is freely available under the terms of the CC BY 4.0 license at https://press.rebus.community/media-innovation-and-entrepreneurship/.

Learning Objectives

By the end of this section, you will be able to:

• Define problem solving in the context of entrepreneurship
• Describe and compare the adaptive model and the innovative model of problem solving
• Identify the skills entrepreneurs need for effective problem solving
• Identify types of problem solvers

As you’ve learned, entrepreneurs often visualize an opportunity gap, a gap between what exists and what could exist, as Hirabayashi and Lidey did with Shine. Entrepreneurial problem solving is the process of using innovation and creative solutions to close that gap by resolving societal, business, or technological problems. Sometimes, personal problems can lead to entrepreneurial opportunities if validated in the market. The entrepreneur visualizes the prospect of filling the gap with an innovative solution that might entail the revision of a product or the creation of an entirely new product. In any case, the entrepreneur approaches the problem-solving process in various ways. This chapter is more about problem solving as it pertains to the entrepreneur’s thought process and approach rather than on problem solving in the sense of opportunity recognition and filling those gaps with new products.

For example, as we read in Identifying Entrepreneurial Opportunity , Sara Blakely (as shown in Figure 6.2 ) saw a need for body contouring and smoothing undergarments one day in the late 1990s when she was getting dressed for a party and couldn’t find what she needed to give her a silhouette she’d be pleased with in a pair of slacks. She saw a problem: a market need. But her problem-solving efforts are what drove her to turn her solution (Spanx undergarments) into a viable product. Those efforts came from her self-admitted can-do attitude: “It’s really important to be resourceful and scrappy—a glass half-full mindset.” 1 Her efforts at creating a new undergarment met resistance with hosiery executives, most of whom were male and out of touch with their female consumers. The hosiery owner who decided to help Blakely initially passed on the idea until running it by his daughters and realizing she was on to something. That something became Spanx , and today, Blakely is a successful entrepreneur. 2

Before getting into the heart of this chapter, we need to make a distinction: Decision making is different from problem solving . A decision is needed to continue or smooth a process affecting the operation of a firm. It can be intuitive or might require research and a long period of consideration. Problem solving , however, is more direct. It entails the solution of some problem where a gap exists between a current state and a desired state. Entrepreneurs are problem solvers who offer solutions using creativity or innovative ventures that exploit opportunities. This chapter focuses on different approaches to problem solving and need recognition that help potential entrepreneurs come up with ideas and refine those ideas.

Two Problem Solving Models: Adaptive and Innovative

There are two prominent established problem-solving models: adaptive and innovative . A renowned British psychologist, Michael Kirton , developed the Kirton Adaption-Innovation (KAI) Inventory to measure an individual’s style of problem solving. 3 Problem-solving preferences are dependent on the personality characteristics of originality, conformity, and efficiency, according to Kirton. The KAI inventory identifies an individual’s problem-solving approach by measuring agreement with statements that align with characteristics, such as the ability to produce many novel ideas, to follow rules and get along in groups, and to systematically orient daily behavior. The results categorize an individual as an innovator or an adaptor. Innovators are highly original, do not like to conform, and value efficiency less than adaptors.

The first and more conservative approach an entrepreneur may use to solve problems is the adaptive model. The adaptive model seeks solutions for problems in ways that are tested and known to be effective. An adaptive model accepts the problem definition and is concerned with resolving problems rather than finding them. This approach seeks greater efficiency while aiming at continuity and stability. The second and more creative approach is the innovative model of entrepreneurial problem solving, which uses techniques that are unknown to the market and that bring advantage to an organization. An innovative problem-solving style challenges the problem definition, discovers problems and avenues for their solutions, and questions existing assumptions—in a nutshell, it does things differently. It uses outside-the-box thinking and searches for novel solutions. Novelty is a shared trait of creative entrepreneurship, and it’s why entrepreneurs gravitate toward this method of problem solving. According to Dr. Shaun M. Powell , a senior lecturer at the University of Wollongong, Australia: “Creative entrepreneurs are notable for a distinctive management style that is based on intuition, informality and rapid decision making, whereas the more conventional thinking styles are not in accord with the unique attributes of creative entrepreneurs.” 4 This way of problem solving doesn’t alter an existing product. It is the creation of something entirely new.

For example, healthcare facilities have long been known as a source of methicillin-resistant Staphylococcus aureus (MRSA), a deadly infection that can have long-term effects on patients. Vital Vio , led by Colleen Costello , has developed white light technology that effectively disinfects healthcare facilities by targeting a molecule specific to bacteria. The light, safe to humans, can burn constantly to kill regenerative bacteria. An adaptive problem-solving model would seek to minimize harm of MRSA within a hospital—to respond to it—whereas the Vital Vio is an entirely new technique that seeks to eliminate it. Adaptive solutions to MRSA include established processes and protocols for prevention, such as having doctors, nurses, and other healthcare providers clean their hands with soap and water, or an alcohol-based hand rub before and after patient care, testing patients to see if they have MRSA on their skin, cleaning hospital rooms and medical equipment, and washing and drying clothes and bed linens in the warmest recommended temperatures. 5

Link to Learning

Visit Inc. Magazine for support and advice for up-and-coming startups to learn more. Examples of how “Dorm Room” entrepreneurs spot and pursue opportunities are shared along with tips and advice for making your startup a success.

Problem-Solving Skills

While identifying problems is a necessary part of the origin of the entrepreneurial process, managing problems is an entirely different aspect once a venture is off the ground and running. An entrepreneur does not have the luxury of avoiding problems and is often responsible for all problem solving in a startup or other form of business. There are certain skills that entrepreneurs possess that make them particularly good problem solvers. Let’s examine each skill (shown in Figure 6.3 ) .

Critical Thinking

Critical thinking is the complex analysis of a problem or issue with the goal of solving the problem or making a decision. The entrepreneur analyzes and peels away the layers of a problem to find the core of an issue facing a business. The entrepreneur focuses on the heart of the problem and responds reasonably and openly to suggestions for solving it. Critical thinking is not only important for developing entrepreneurial ideas: it is a sought-after asset in education and employment. Entrepreneur Rebecca Kantar dropped out of Harvard in 2015 to found the tech startup Imbellus , which aims to replace standardized college admissions tests like the SAT with interactive scenarios that test critical-thinking skills. Many standardized tests may include multiple choice questions asking for the answer to a straightforward knowledge question or math problem. Kantar seeks to create tests that are more concerned with the analytic ability and reasoning that goes into the process of solving the problem. Imbellus says it aims to test “how people think,” not just what they know. The platform, which has not yet launched, will use simulations for its user assessments. 6

Read more about problem solving and EnterpriseWorks/Vita’s story at Harvard Business Review .

Communication

Communication skills , the ability to communicate messages effectively to an intended recipient, are the skills entrepreneurs use to pool resources for the purposes of investigating solutions leading to innovative problem solving and competitive advantage. Good communication allows for the free association of ideas between entrepreneurs and businesses. It can illustrate a problem area or a shared vision, and seeks stakeholder buy-in from various constituencies. Networking and communication within an industry allow the entrepreneur to recognize the position of an enterprise in the market and work toward verbalizing solutions that move an organization beyond its current state. By “verbalizing,” we mean communication from and with the company/entity. Internal communications include company emails, newsletters, presentations, and reports that can set strategic goals and objectives, and report on what has been accomplished and what goals and objectives remain, so that employees within an organization are knowledgeable and can work on solving problems that remain within the organization. External communications could include press releases, blogs and websites, social media, public speeches, and presentations that explain the company’s solutions to problems. They could also be investor pitches complete with business plans and financial projections.

Ideation exercises, such as brainstorming sessions (discussed in Creativity, Innovation, and Invention , are good communication tools that entrepreneurs can use to generate solutions to problems. Another such tool is a hackathon —an event, usually hosted by a tech company or organization, which brings together programmers and workers with other degrees of specialization within the company, community, or organization to collaborate on a project over a short period of time. These can last from twenty-four hours to a few days over a weekend. A hackathon can be an internal company-wide initiative or an external event that brings community participants together. A business model canvas , which is covered in Business Model and Plan and other activities outlined in other chapters can be used internally or externally to identify problems and work toward creating a viable solution.

Networking is an important manifestation of useful communication. What better method is there of presenting one’s concept, gaining funding and buy-in, and marketing for the startup than through building a network of individuals willing to support your venture? A network may consist of potential employees, customers, board members, outside advisors, investors, or champions (people who just love your product) with no direct vested interest. Social networks consist of weak ties and strong ties. Sociologist Mark Granovetter studied such networks back in the 1970s, and his findings still apply today, even if we include social media networks in the definition too. Weak ties facilitate flow of information and community organization, he said, whereas strong ties represent strong connections among close friends, family members, and supportive coworkers. 7 Strong ties require more work to maintain than weak ties (as illustrated by the strong lines and weak dotted lines in Figure 6.4 ) and in a business context, they don’t lead to many new opportunities. Weak ties, in contrast, do open doors in that they act as bridges to other weak ties within functional areas or departments that you might not have had access to directly or through strong ties. 8

In fact, many young entrepreneurs, including tech entrepreneur Oliver Isaacs , realize college is a great place to begin building teams. Isaacs is the founder of viral opinion network Amirite.com , which is widely credited as the place where Internet memes started and online slang got a foothold. 9 Amirite.com consists of a large network of pages and partnerships on Facebook and Instagram that reach 15 million users each month. Isaacs recommends using your alumni network to build a team and customer base for your own venture because you never know if you’re talking to a future employee or partner.

Sharing of ideas and resources is highly valued in the entrepreneurial process. Communication is a vital skill in problem solving because the ability to identify and articulate the problem (define the problem space) is necessary to adequately address a problem. A problem can be too vague or broad or narrow. Thus, communicating the problem is important, as is conveying the solution.

Decisiveness

Decisiveness is as it sounds: the ability to make a quick, effective decision, not letting too much time go by in the process. Entrepreneurs must be productive, even in the face of risk. They often rely on intuition as well as on hard facts in making a choice. They ask what problem needs to be solved, think about solutions, and then consider the means necessary to implement an idea. And the decisions must be informed with research.

For example, as explained in Adam Grant’s book The Originals , the co-founders of Warby Parker, a venture-backed startup focused on the eyewear industry, started their company while they were graduate students. At the time they knew little about the industry, but after conducting some detailed research, they learned that the industry was dominated by one major player—Luxottica. They used this information and other data to refine their strategy and business model (focusing mainly on value, quality, and convenience via an online channel). By the time they decided to launch the business, they had thought through the key details, and they attained rapid early success. Today Warby Parker has over 100 retail stores in the US, is profitable, and is valued at almost $2 billion.

Decisiveness is the catapult to progress. Amazon founder Jeff Bezos preaches the importance of decisiveness throughout his organization. Bezos believes that decisiveness can even lead to innovation. Bezos advocates for making decisions after obtaining 70 percent of the information you need to do so: “Being wrong may be less costly than you think, whereas being slow is going to be expensive for sure,” Bezos wrote in a 2017 annual letter to stockholders. 10

Read this LinkedIn blog post on decisiveness to learn more.

Ability to Analyze Data

Data analysis is the process of analyzing data and modeling it into a structure that leads to innovative conclusions. Identifying Entrepreneurial Opportunity covered much of the sources of data that entrepreneurs might seek. But it is one thing to amass information and statistics. It is another to make sense of that data, to use it to fill a market need or forecast a trend to come. Successful founders know how to pose questions about and make meaning out of information. And if they can’t do that themselves, they know how to bring in experts who can.

In addition to public sources of broad data, a business can collect data on customers when they interact with the company on social media or when they visit the company website, especially if they complete a credit card transaction. They can collect their own specific data on their own customers, including location, name, activity, and how they got to the website. Analyzing these data will give the entrepreneur a better idea about the interested audience’s demographic.

In entrepreneurship, analyzing data can help with opportunity recognition, creation, and assessment by analyzing data in a variety of ways. Entrepreneurs can explore and leverage different data sources to identify and compare “attractive” opportunities, since such analyses can describe what has happened, why it happened, and how likely it is to happen again in the future. In business in general, analytics is used to help managers/entrepreneurs gain improved insight about their business operations/emerging ventures and make better, fact-based decisions.

Analytics can be descriptive, predictive, or prescriptive. Descriptive analytics involves understanding what has happened and what is happening; predictive analytics uses data from past performance to estimate future performance; and prescriptive analytics uses the results of descriptive and predictive analytics to make decisions. Data analysis can be applied to manage customer relations, inform financial and marketing activities, make pricing decisions, manage the supply chain, and plan for human resource needs, among other functions of a venture. In addition to statistical analysis, quantitative methods, and computer models to aid decision-making, companies are also increasingly using artificial intelligence algorithms to analyze data and make quick decisions.

Understanding of Business and Industry

Entrepreneurs need sound understanding of markets and industries. Often times, they are already working in a large organization when they see growth opportunities or inefficiencies in a market. The employee gains a deep understanding of the industry at hand. If the employee considers a possible solution for a problem, this solution might become the basis for a new business.

For example, consider a marketing agency that used traditional marketing for thirty years. This agency had an established clientele. An executive in the organization began studying social media analytics and social media. The executive approached the owner of the business to change processes and begin serving clients through social media, but the owner refused. Clients within the agency began to clamor for exposure on social media. The marketing executive investigated the possibility of building an agency in her locale servicing clients who wish to utilize social media. The marketing executive left the organization and started her own agency (providing, of course, that this is in compliance with any noncompete clauses in her contract). Her competitive advantage was familiarity with both traditional and social media venues. Later, the original agency started floundering because it did not offer social media advertising. Our intrepid executive purchased the agency to gain the clientele and serve those wishing to move away from traditional marketing.

A similar experience occurred for entrepreneur Katie Witkin . After working in traditional marketing roles, the University of Wisconsin-Madison graduate, pictured in Figure 6.5 , left agency life behind four years out of college to cofound her own company, AGW Group . In 2009, Witkin had been interning at a music marketing agency that didn’t have a social media department. She knew, both from her time at college and from observing industry trends, that social media was changing the way companies connected with customers. For her own venture, she expanded the focus to all supporting brands to manage all things digital. Today, the cultural and marketing communications agency has fifteen employees and big-name clients ranging from HBO to Red Bull. 11

Resourcefulness

Resourcefulness is the ability to discover clever solutions to obstacles. Sherrie Campbell , a psychologist, author, and frequent contributor to Entrepreneur magazine on business topics, put it this way:

“There is not a more useful or important trait to possess than resourcefulness in the pursuit of success. Resourcefulness is a mindset, and is especially relevant when the goals you have set are difficult to achieve or you cannot envision a clear path to get to where you desire to go. With a resourcefulness mindset you are driven to find a way. An attitude of resourcefulness inspires out-of-the-box thinking, the generation of new ideas, and the ability to visualize all the possible ways to achieve what you desire. Resourcefulness turns you into a scrappy, inventive and enterprising entrepreneur. It places you a cut above the rest.” 12

Entrepreneurs start thinking about a business venture or startup by talking to people and procuring experts to help create, fund, and begin a business. Entrepreneurs are risk takers, passionate about new endeavors. If they don’t have a college degree or a great deal of business experience, they understand there are many resources available to support them in the endeavor, such as the Service Corps of Retired Executives (SCORE) and the Small Business Administration (SBA) . There are many sources available to fund the business with little or no debt and options, as you will see in the chapter on Entrepreneurial Finance and Accounting . The entrepreneur follows a vision and researches opportunities to move toward a dream.

For example, in the late 1990s, Bill McBean and his business partner Billy Sterett had an opportunity to buy an underperforming auto dealership that would make their company the dominant one in the market. Neither wanting to take cash from other ventures nor wanting to borrow more money and tie themselves to more debt, the entrepreneurs were resourceful by finding another path forward to obtaining the money necessary for the acquisition they both coveted. They changed banks and renegotiated their banking payback requirements, lowering their interest payments, reducing fees, and lowering their monthly payments, ultimately freeing up a significant amount of cash that allowed them to buy the new company. 13

Types of Problem Solvers

Entrepreneurs have an insatiable appetite for problem solving. This drive motivates them to find a resolution when a gap in a product or service occurs. They recognize opportunities and take advantage of them. There are several types of entrepreneurial problem solvers, including self-regulators, theorists, and petitioners.

Self-Regulating Problem Solvers

Self-regulating problem solvers are autonomous and work on their own without external influence. They have the ability to see a problem, visualize a possible solution to the problem, and seek to devise a solution, as Figure 6.6 illustrates. The solution may be a risk, but a self-regulating problem solver will recognize, evaluate, and mitigate the risk. For example, an entrepreneur has programmed a computerized process for a client, but in testing it, finds the program continually falls into a loop, meaning it gets stuck in a cycle and doesn’t progress. Rather than wait for the client to find the problem, the entrepreneur searches the code for the error causing the loop, immediately edits it, and delivers the corrected program to the customer. There is immediate analysis, immediate correction, and immediate implementation. The self-regulating problem solvers’ biggest competitive advantage is the speed with which they recognize and provide solutions to problems.

Theorist Problem Solvers

Theorist problem solvers see a problem and begin to consider a path toward solving the problem using a theory. Theorist problem solvers are process oriented and systematic. While managers may start with a problem and focus on an outcome with little consideration of a means to an end, entrepreneurs may see a problem and begin to build a path with what is known, a theory, toward an outcome. That is, the entrepreneur proceeds through the steps to solve the problem and then builds on the successes, rejects the failures, and works toward the outcome by experimenting and building on known results. At this point, the problem solver may not know the outcome, but a solution will arise as experiments toward a solution occur. Figure 6.7 shows this process.

For example, if we consider Marie Curie as an entrepreneur, Curie worked toward the isolation of an element. As different approaches to isolating the element failed, Curie recorded the failures and attempted other possible solutions. Curie’s failed theories eventually revealed the outcome for the isolation of radium. Like Curie, theorists use considered analysis, considered corrective action, and a considered implementation process. When time is of the essence, entrepreneurs should understand continual experimentation slows the problem-solving process.

Petitioner Problem Solvers

Petitioner problem solvers ( Figure 6.8 ) see a problem and ask others for solution ideas. This entrepreneur likes to consult a person who has “been there and done that.” The petitioner might also prefer to solve the problem in a team environment. Petitioning the entrepreneurial team for input ensures that the entrepreneur is on a consensus-driven path. This type of problem solving takes the longest to complete because the entrepreneur must engage in a democratic process that allows all members on the team to have input. The process involves exploration of alternatives for the ultimate solution. In organizational decision-making, for example, comprehensiveness is a measure of the extent a firm attempts to be inclusive or exhaustive in its decision-making. Comprehensiveness can be gauged by the number of scheduled meetings, the process by which information is sought, the process by which input is obtained from external sources, the number of employees involved, the use of specialized consultants and the functional expertise of the people involved, the years of historical data review, and the assignment of primary responsibility, among other factors. Comprehensive decision-making would be an example of a petitioner problem-solving style, as it seeks input from a vast number of team members.

A charette —a meeting to resolve conflicts and identify solutions—is another example that employs a petitioner problem-solving approach. Often times, a developer of a new project might hold a community charette to aid in the design of a project, hoping to gain approval from elected officials. In the building example, this could consist of the developer and his team of architects, project designers, and people with expertise in the project working alongside community members, business executives, elected officials, or representatives like staff members or citizen-appointed boards like a planning board. Such an activity is representative of a petitioner problem-solving approach, as opposed to a developer representative designing the project with no input from anyone else.

In summary, there is no right or wrong style of problem solving; each problem solver must rely on the instincts that best drive innovation. Further, they must remember that not all problem-solving methods work in every situation. They must be willing to adapt their own preference to the situation to maximize efficiency and ensure they find an effective solution. Attempting to force a problem-solving style may prevent an organization from finding the best solution. While general entrepreneurial problem-solving skills such as critical thinking, decisiveness, communication, and the ability to analyze data will likely be used on a regular basis in your life and entrepreneurial journey, other problem-solving skills and the approach you take will depend on the problem as it arises.

There are a number of resources online that can help analyze your problem-solving abilities. Mindtools.com is one such resource. These are useful to learn your general problem-solving tendencies before being called upon to apply them in a real-world setting. One of the problem-solving techniques available from mindtools.com offers that problems can be addressed from six different perspectives. Called CATWOE , the approach is an acronym for Customers, Actors (people within the organization), Transformative, Worldwide, Owner, and Environment (organizational).

Learn more about the CATWOE technique for problem solving.

• 1 Helen Lock. “‘I Put My Butt on the Line’: How Spanx Took Over the World.” The Guardian. July 11, 2016. https://www.theguardian.com/small-business-network/2016/jul/11/put-butt-on-the-line-how-spanx-world
• 2 Gary Keller. “Business Success Series, Part 1: Sara Blakely-Spanx.” The One Thing. n.d. https://www.the1thing.com/blog/the-one-thing/business-success-series-part-1-sara-blakely-spanx/
• 3 “Characteristics of Adaptors and Innovators.” Kirton KAI Inventory Tool . n.d. http://pubs.acs.org/subscribe/archive/ci/31/i11/html/11hipple_box3.ci.html
• 4 Shaun Powell. “The Management and Consumption of Organisational Creativity.” Journal of Consumer Marketing 25, no. 3 (2008): 158–166.
• 5 N.C Healthcare-Associated Infections Prevention Program. Healthcare-Associated Infections in North Carolina: 2014 Annual Report, Healthcare Consumer Version. April 2015. https://epi.dph.ncdhhs.gov/cd/hai/figures/hai_apr2015_consumers_annual.pdf
• 6 Romesh Ratnesar. “What If Instead of Taking the SAT You Got to Play a Video Game?” Bloomberg BusinessWeek. March 19, 2019. https://www.bloomberg.com/news/features/2019-03-19/a-harvard-dropout-s-plan-to-fix-college-admissions-with-video-games
• 7 Mark Granovetter. “The Strength of Weak Ties.” American Journal of Sociology 5 (1973): 1360–1380.
• 8 Jacob Morgan. “Why Every Employee Should Be Building Weak Ties at Work.” Forbes. March 11, 2014. https://www.forbes.com/sites/jacobmorgan/2014/03/11/every-employee-weak-ties-work/#277851063168
• 9 John White. “Top UK Influencer Oliver Isaacs Reveals What It Takes to Go Viral.” Inc . August 6, 2017. https://www.inc.com/john-white/top-uk-influencer-oliver-isaacs-reveals-what-it-ta.html
• 10 Erik Larson. “How Jeff Bezos Uses Faster Better Decisions to Keep Amazon Innovating.” Forbes . September 24, 2018. https://www.forbes.com/sites/eriklarson/2018/09/24/how-jeff-bezos-uses-faster-better-decisions-to-keep-amazon-innovating/#492c351b7a65
• 11 Stephanie Schomer. “How Getting Laid Off Empowered This Entrepreneur to Start Her Own Award-Winning Marketing Agency.” Entrepreneur. January 15, 2019. https://www.entrepreneur.com/article/326212
• 12 Sherrie Campbell. “6 Characteristics of Resourceful People That Bring Them Success.” Entrepreneur. March 10, 2016. https://www.entrepreneur.com/article/272171
• 13 “Resourcefulness Is More Important Than Resources.” The Ecommerce Mindset: How Successful Store Owners Think. n.d. https://www.oberlo.com/ebooks/mindset/resourceful-entrepreneur

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40 Startup Business Ideas to Try in 2024

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Aspiring entrepreneurs are often one brilliant startup business idea away from becoming their own boss. Of course, brilliance is easier said than done when starting a business .

The best startup ideas have business plans that solve a problem, meet an unmet demand or improve upon something already on the market — if not all of the above. Here are 40 ideas to help get your wheels turning as you look to bring a company to life.

40 best startup business ideas

Even startup ideas that seemingly come out of left field can yield incredible success. Read through this list for instant inspiration.

1. Create educational content or activities

Parents are always looking for tools and activities to keep their kids entertained and engaged. Printable activity guides for different age groups, home-school lesson plans or even virtual nature walks or story time could all be viable startup ideas.

2. Offer virtual team-building

Companies need new ways to boost morale and build camaraderie among remote and hybrid teams. Enter the virtual team-builder. Cheesemongers, mixologists, chefs, magicians, artists, historians, master gardeners — almost anyone can create and offer bonding experiences for virtual companies.

3. Start a meal-prep business

The U.S. market for meal kits is expected to grow 14.2% annually between 2023 and 2030, according to market analysis by Grand View Research [0] Grand View Research . Meal Kit Delivery Services Market Size, Share & Trends Analysis Report By Offering (Heat & Eat, Cook & Eat), By Service (Single, Multiple), By Platform (Online, Offline), Meal Type (Vegan, Vegetarian), By Region, And Segment Forecasts, 2023 - 2030 . Accessed Feb 21, 2024. View all sources . Tap into that market and start a meal-prep service to make people’s lives easier and cater to specialized diets (keto, vegan, Whole30).

4. Create a food waste solution

Creating a startup focused on reducing food waste could not only earn you some serious funding, but also positively change the food system and help save grocery stores and restaurants money.

5. Capitalize on plant-based foods

The U.S. plant-based market was worth $8 billion in 2022, with sales of plant-based foods projected to climb 44% over three years, according to the most recent annual report from the Good Food Institute [0] Good Food Institute . U.S. retail market insights for the plant-based industry . Accessed Feb 21, 2024. View all sources . Creating a vegan supermarket or making meat-free versions of traditional foods could be the ticket to success for aspiring entrepreneurs.

6. Start a dropshipping business

The e-commerce business model of dropshipping is especially attractive because it doesn’t require you to purchase inventory upfront. Selling higher-end products with low shipping costs could become profitable quickly if you do thorough competition research.

» MORE: 25 low-cost business ideas

7. Curate subscription boxes

Subscription boxes were a $32.9 billion business globally in 2023 (up from $22.7 billion in 2021), and the industry is still set to grow, according to a market research report by the International Market Analysis Research and Consulting Group [0] International Market Analysis Research and Consulting Group . Subscription Box Market Report by Type (Replenishment Subscription, Curation Subscription, Access Subscription), Gender (Male, Female), Application (Clothing and Fashion, Beauty, Food and Beverages, Pet Food, Baby Products, Health and Fitness, and Others), and Region 2024-2032 . Accessed Feb 21, 2024. View all sources . Pick a niche, and then curate a collection of specialized goods to deliver unique experiences to consumers. Some subscription boxes focus on a mix of products, like makeup or dog toys; others focus on a single item or theme, like shaving or sustainability. Find the right starting point for you and run with it.

Ready to get started? Here's what to do next

Open a business bank account.

Start keeping the books.

Build your website.

Protect yourself from liability.

8. Create an airport-centric app

Creating an all-in-one app that allows travelers tonavigate unfamiliar airports with real-time information is a relatively untapped startup idea. Though various travel applications exist, an app that shows amenities, TSA line wait times, ground transportation options and airport maps could be useful to passengers.

9. Become a destination wedding planner

Planning a wedding is stressful; planning a wedding from afar could fray any couple’s nerves. That creates a niche for a destination wedding planner who can advise on venue and vendor selections, as well as manage wedding and travel logistics for the bridal party and guests. If you love exploring, have expertise in a popular wedding locale and are great under pressure, this could be the startup idea for you.

10. Make local guides

Even if you don’t consider yourself a local expert, creating local guides can get you familiar with your surroundings and help tourists enjoy off-the-beaten-path experiences in your area. Make themed guides, highlight attractions and partner with local businesses for advertising opportunities.

» MORE: 25 side business ideas

11. Create a local grocery delivery service

A grocery delivery startup can come with minimal setup costs — you only need a vehicle and a cell phone to get started. Help older people or others who are too busy to shop by offering this community-friendly service. You can even approach grocery stores in your area to see if they're willing to partner with you to get the service off the ground.

12. Start a virtual event planning company

Virtual event planning is a new booming business as in-person gatherings go online or take a hybrid approach. A skilled planner who can ensure all attendees are engaged, regardless of location, will be in high demand for years to come.

» MORE: Best business credit cards for LLCs

13. Sell zero-waste products

Starting a zero-waste company is more than just a trendy thing to do; it can be an ethical, environmentally conscious decision. Selling sustainable products such as reusable bags, bamboo toothbrushes or products with zero-waste packaging could appeal to a growing number of sustainability-focused consumers.

14. Make products for pets

Create innovative pet products to take advantage of the fact that 66% of U.S. households (about 86.9 million households) have at least one animal companion, according to the annual pet ownership survey by the American Pet Products Association [0] American Pet Products Association . Industry Trends and Stats . View all sources . Developing toys, accessories or clothing for furry friends can help you tap into that expansive market. You can also go the service route and offer pet sitting, walking or virtual dog training. Or develop an app or tech solution that makes pet parents’ lives easier.

15. Create custom clothing

Selling custom clothing or offering a tailoring service could be your winning startup idea. The custom clothing industry is gaining popularity and offers room for long-term growth.

» MORE: How to open an Etsy shop

16. Sell vintage clothing online

Demand for sustainable fashion has helped propel second-hand clothing into a $39 billion industry in the U.S. with projections to hit $70 billion by 2027, according to an annual resale report by online consignment company ThredUp [0] ThredUp . ThredUp Resale Report 2023 . View all sources . Consider selling thrifted, vintage or upcycled clothing on social media, an ecommerce platform or an app such as ThredUp or Poshmark.

17. Begin niche blogging

Find a niche (think e-sports or urban farming) and create engaging content around it. You can earn money through advertising, affiliate links and even product sales once you build an audience.

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18. Become an e-book writer

If you’ve got a way with words, consider becoming a self-published author and selling e-books on virtual platforms.

» MORE: 14 profitable e-commerce business ideas

19. Start ghostwriting

Create content for busy professionals who don’t have the time or the skill to write themselves. If you don’t mind not attaching your name to your writing, ghostwriting is a great way to earn money with little to no startup costs attached.

20. Become a resume writer

Everyone needs a resume, but few people are skilled at or enjoy writing their own. If you’ve got writing experience and are looking to launch a startup with no setup costs, creating a resume-writing service could be the path for you.

21. Open a coworking space

Capitalize on the rising popularity of remote work by creating a modern coworking space that addresses pain points of entrepreneurs. Pick a convenient location and build it out with highly sought-after amenities.

» MORE: 35 businesses that every community needs

22. Become an online coach

If you enjoy helping others achieve their goals and are a people person, this startup idea could be fulfilling for yourself and for your clientele. You can provide wellness, business or life coaching.

23. Flip failing websites

Buy an existing website, make improvements on it and sell it for a profit. You’ll need to understand the market well and have some web development skills, but this can be a profitable pursuit.

24. Become a web developer

The need for custom websites isn’t ever going away, and if you know your way around WordPress or know a programming language or two, you can start a profitable website development startup.

25. Start a podcast

If you’re deeply knowledgeable or passionate about a subject, consider getting into podcast production or hosting. Building an audience takes time, but once established, podcasters can earn money through affiliate marketing, donations and sponsorships.

26. Be a social media influencer

Once you find a niche and build a personal brand, amassing a large following on Instagram or YouTube can lead to a solid source of income through influencer marketing.

» MORE: 30 Instagram business ideas

27. Create online courses

Obscure hobbies can lead to lucrative business ideas if you make them easy for others to learn. If you’d like to teach others but aren’t interested in the coaching route, creating an online course could lead to reliable passive income.

28. Become a marketing consultant

If you’ve got digital marketing chops, help small businesses reach their target audiences by providing SEO, social media or copywriting services.

29. Develop an app

If you’ve got a unique idea and the necessary technical skills, creating an app could be your gold mine. It’s also possible to build an app without extensive coding skills, and once it launches, it can bring in passive earnings.

» MORE: 25 tech business ideas

30. Make a smart appliance

Smart accessories and home appliances are all the rage and becoming an important part of daily life for the average consumer. For inspiration, take note of daily tasks at home or at work that would be easier with a smart appliance.

31. Tap into virtual reality experiences

VR is the future, and the future is now. Create virtual reality experiences or accessories to tap into a global industry that’s projected to grow to a $165.91 billion market by 2030, according to a report by Fortune Business Insights [0] Fortune Business Insights . The global virtual reality market size was valued at $19.44 billion in 2022 & is projected to grow from $25.11 billion in 2023 to $165.91 billion by 2030... Read More at:- https://www.fortunebusinessinsights.com/industry-reports/virtual-reality-market-101378 . View all sources , a market research firm.

32. Make a niche dating site

The stigma around online dating has decreased over the past decade, so take the opportunity to help others find love. With various dating sites targeted to everyone from sea captains to farmers, there is market demand for specialty dating options.

33. Develop a chatbot

Create a chatbot — which uses artificial intelligence to communicate with people — to help businesses improve their communication. Chatbots have become more popular in recent years, and you can create one without knowing how to code.

34. Offer matchmaking skills

This is like creating a dating site but with a personal touch. If you have a knack for knowing what types of people and which personalities get along well, you might be the perfect person to start matchmaking. You can do this online or meet clients in person as well.

35. Be a virtual assistant

Being an online assistant for someone, or starting a company of virtual assistants, can be a huge success. Everyone could use a little extra help, and creating a startup focused around getting people that help for the administrative tasks in their lives, professional or personal, can be a huge moneymaker.

» MORE: Home-business ideas: 40 remote jobs to explore

36. Reinvent exercising

If there's one thing people get bored with, it's doing the same type of exercise day in and day out to stay healthy. Plenty of people have turned the exercise industry on its head, with businesses like CrossFit and Peloton popping up. You can do the same if you have an idea for a new regimen or activity for exercise enthusiasts.

37. Create eco-friendly, health-friendly makeup and beauty products

As people become more aware of the impact their personal choices have on their health and on the environment, they're looking for more health and beauty products that are also eco-friendly. Creating safe and eco-friendly products could be a great startup idea.

38. Open a food truck or restaurant pop-up

Opening a food truck or restaurant pop-up is a great startup idea for entrepreneurs with a knack for cooking. Both options are easier to launch than a full-scale restaurant and allow you to get started with a smaller staff and menu. You can open a food truck that only sells french fries with crazy toppings, for example, or launch a breakfast sandwich pop-up in your neighborhood coffee shop.

» MORE: Best food truck loan options

39. Start an organization business

Shows like "Tidying Up With Marie Kondo" and "The Home Edit" put professional organizing on the map, exposing millions to the magic of a tidy home. If you have a knack for making order out of chaotic spaces, you could start a business offering those services to those who need them. Organizing kitchen pantries, closets, bookshelves and more are all options you could offer customers at your new business.

40. Do interior design for young professionals

Have an eye for decorating? Start an interior design business, offering your services at an hourly rate virtually to young professionals looking for inspiration. It can be as simple as them uploading some images of their new space to your site and you sending back a few links with furniture in their budget and example images of what the room might look like when it's finished.

Start Your Dream Business

How to choose a startup idea

Do your homework before diving headfirst into a startup idea. First, make sure there's demand for the business you want to start, where you want to start it. More than 35% of businesses fail because there isn't a market need for their services or product, according to research from CB Insights [0] CB Insights . The Top 12 Reasons Startups Fail . View all sources .

You also need to write a business plan , which should include your company’s objective, sales plan, market analysis and financial projections. A good business plan can help to keep your business on track. Lenders will also want to see your business plan when considering you for a startup business loan . You should also consider the skills you already have and see how those align with any of the startup business ideas you might go with.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

How to Start a Business: A Startup Guide for Entrepreneurs [Template]

Published: February 15, 2024

I started a local HVAC business in the summer of 2020, and since then, I’ve learned a lot about which steps are most important for getting a business venture off the ground. To help you make your business idea a reality, I've put together a complete guide that walks you through the steps of starting a business.

The guide covers every step I’ve discovered you need to start a business, from the paperwork and finances to creating your business plan and growing your business online. At the bottom, you’ll find a library of the best free tools and resources to start selling and marketing your products and services.

Use the links below to navigate to each section of the guide:

• What do you need to start a business?

How to Start a Business

How to make a business plan, how to decide on a company name.

• How to Choose a Business Structure

How to Register Your Business

How to comply with legal requirements, how to find funding for your new business, how to create a brand identity for your new business, tips for starting a business, resources to start a business, how to start a business online.

Let's get started.

Every budding entrepreneur wants more visitors, more qualified leads, and more revenue. But starting a business isn’t one of those “if you build it, they will come” situations. So much of getting a startup off the ground has to do with timing, planning, and the market, so consider if the economic conditions are right to start a company and whether you can successfully penetrate the market with your solution.

In order to build and run a successful company , you’ll also need to create and fine-tune a business plan, assess your finances, complete all the legal paperwork, pick your partners, research apps for startup growth, choose the best tools and systems to help you get your marketing and sales off the ground … and a whole lot more.

When I first started my business, I felt overwhelmed by the sheer magnitude of requirements, which is why I’ve summed up the process to make it easier for you.

In brief, the requirements for starting a business are:

• A business plan.
• A business name.
• An ownership or business structure.
• A business registration certificate.
• A legal license or seller’s permit (as well as other legal documents).
• A source of funding.
• A brand identity.

Without these elements in place, you unnecessarily risk your new business’s future. Now let’s go over these basic steps for starting a business.

• Write a business plan.
• Choose a business name.
• Choose an ownership structure.
• Register your business.
• Review and comply with legal requirements.
• Apply for funding.
• Create a brand identity.

Having a great business idea is only part of the journey. In order to be successful, you’ll need to take a few steps to get it off the ground. In order to refine your business idea and set yourself up for success, consider doing the following:

1. Write a business plan.

Your business plan maps out the details of your business, including how it’s structured, what product or service you’ll sell, and how you’ll be selling it. Creating a business plan will help you find any obstacles on the horizon before you jump into running a business.

Pro tip: Remember that part of a business plan is telling investors or funders which specific items you need funding for. Be sure to list what you need to be funded, the reasoning behind items, and how long you will need funding.

Recommended Reading:

• What is a Business Plan? Definition, Tips, and Templates
• How to Build a Detailed Business Plan That Stands Out
• How to Write an Ecommerce Business Plan
• How to Become an Entrepreneur With No Money or Experience

70 Small Business Ideas for Anyone Who Wants to Run Their Own Business

Jump to: How to Start a Business Plan →

Featured Resource: Free Business Plan Template

Below are the key elements in a business plan template, details about what goes into each of them, and example sections at the bottom. You’ll also learn tips for writing a business plan .

1. Use a business plan template .

The executive summary should be about a page long. It should cover:

• Overview . Briefly explain what the company is, where you’ll be located, what you’ll sell, and who you’ll sell to.
• Company profile. Briefly explain the business structure, who owns it, what prior experience/skills they’ll bring to the table, and who the first hires might be.
• Products or services . Briefly explain what you’ll sell.
• The market. Briefly explain your main findings from your market analysis and product market fit .
• Financial considerations . Briefly explain how you plan to fund the business and what your financial projections are.

Featured Resource: Executive Summary Template

On the marketing side, you’ll want to cover answers to questions like:

• How do you plan to penetrate the market?
• How will you grow your business?
• Which channels will you focus on for distribution?
• How will you communicate with your customers?

Pro tip: Marketing trends change year after year, so be sure to keep up on the latest trends by subscribing to the Hubspot Marketing blog .

On the sales side, you’ll need to cover answers to questions like:

• What’s your sales strategy ?
• What will your sales team look like, and how do you plan to grow it over time?
• How do you plan to scale for growth ?
• How many sales calls will you need to make to make a sale?
• What’s the average price per sale?

Speaking of average price per sale, you’ll want to go into your pricing strategy as well.

Featured Resource: Marketing & Sales Alignment Template

How Taxes Work

The individual proprietor owns and manages the business and is responsible for all transactions, including debts and liabilities. Income and losses are taxed on the individual’s personal income tax return at ordinary rates. In addition, you are also subject to payroll taxes, or self-employment taxes, on the money you earn. Find IRS tax forms here .

Questions to Determine If It’s Right For You

Will you be the only employee, at least for the foreseeable future?

✅ If yes, this is an excellent option for you.

Are you all right with assuming full liability for the business?

✅ If so, this is a good choice. If not, consider an LLC or corporation instead, which will afford you more protection if the business fails.

Pro tip: I originally planned to have a partnership-style business, but my partner went on to a different line of work. However, by researching different business ownership types, I was able to quickly pivot and not lose any of the work I had put in.

2. Partnership

A partnership is a single business where two or more people share ownership, and each owner contributes to all aspects of the business, including shares in the profits and losses of the business.

Example: Multiple doctors maintain separate practices in the same building.

• It’s generally pretty easy to form a business partnership, and it doesn’t tend to be super expensive, either.
• Having two or more people equally invested in the business’ success allows you to pool resources.
• You’ll have access to more than one person’s skillset and expertise.
• Just like a sole proprietor, partners have full, shared liability if the business goes south. Note : There is a variant on partnerships called a limited liability partnership, or LLP, that protects against that.
• Partners aren’t just liable for their own actions, but also the actions of their partner(s).
• When more than one person is involved in decisions, there’s room for disagreement — which means it’s important to have an explicit agreement over how the obligations and earnings will be split.

To form a partnership, you have to register your business with your state, a process generally done through your Secretary of State’s office. You will also need to file self-employment taxes for each partner. Find IRS tax forms here .

Will you be founding the business with any other person, including a family member?

✅ If yes, this is an excellent option for you. A partnership structure is especially beneficial if the other stakeholder is a family member so that no one goes back on their word.

Are you all right with assuming half liability for the business?

✅ If so, this is a good choice. If not, consider an LLP (limited liability partnership), LLC, or corporation instead, which will afford you more protection if the business fails.

Do you consider yourself to have strong conflict resolution and collaboration skills?

✅ Working in a team and resolving conflicts is an essential aspect of starting a business with a partner. If you’re more of a lone wolf, consider a sole proprietorship instead.

3. Limited Liability Company (LLC)

Limited liability companies (LLCs) are a type of business structure that’s more complex than sole proprietorships and partnerships, but less complex than corporations. They are called “pass-through entities” because they’re not subject to a separate level of tax.

Most states don’t restrict ownership of LLCs, and so members can include individuals, corporations, and even other LLCs and foreign entities. Most states also permit “single-member” LLCs — those having only one owner.

Example: A small design firm owned by one president and staffed by multiple designers and other employees.

• Owners of an LLC have limited liability, meaning that they personally are not responsible for any financial or legal faults of the business. This reduction in risk is what makes an LLC a very popular business structure.
• They’re simpler to operate than a corporation because they aren’t subject to as many formalities and regulations.
• LLCs are often more complex than sole proprietorships or partnerships, which means higher initial costs.
• Certain venture capital funds are hesitant to invest in LLCs because of tax considerations and the aforementioned complexity.

LLCs have the benefit of a “flow-through” tax treatment, meaning that the owners — not the LLC — are the ones who are taxed. Having only one level of tax imposed makes taxes easier. Find IRS tax forms here .

Would you prefer to be held minimally liable for the business and its financial outcomes?

✅ If so, an LLC is an excellent choice to protect your personal assets and finances. This is a good choice even if you’re starting a freelance business on your own.

Do you have the budget to pay LLC fees?

✅ LLC registration fees aren’t high, but they’re still an additional expense your business will need to budget for.

4. Corporation

A corporation is a legal entity that is separate and distinct from its owners and has most of the rights and responsibilities that an individual possesses (to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes). It’s more complex than the other business structures, and it’s generally suggested for larger, established companies with multiple employees.

Example: Microsoft, Coca-Cola, Toyota Motor, and almost all well-known businesses.

• They make seeking venture financing easy.
• They provide the best protection for personal assets.
• Founders, directors, and stockholders are (usually) not liable for the company’s debts and obligations — only the money and resources they’ve personally invested.
• Because they’re much more complex than other business structures, they can have costly administrative fees.
• They have more complicated tax and legal requirements.

Corporations are required to pay federal, state, and in some cases, local taxes. There are two different types of corporations: “C corporations” and “S corporations.” C corporations are subject to double taxation. Any profit a C corporation makes is taxed to the corporation when earned and then is taxed to the shareholders when distributed as dividends.

The corporation does not get a tax deduction when it distributes dividends to shareholders. Shareholders cannot deduct any loss from the corporation, but they are also not responsible directly for taxes on their earnings — just on the dividends they give to shareholders.

S corporations, on the other hand, have only one level of taxation. Learn more about the difference between “C corporations” and “S corporations” here , and find IRS tax forms here .

Have you secured enough venture capital to scale your small business into a full corporation?

✅ Corporations can start small, but they need to have enough funds to grow. If you have a list of investors who’ve invested $1M+ in your small business, then it may be time to think about becoming a corporation.

Do you have an internal accounting team that can handle tax matters?

✅ The tax requirements for corporations can be complicated, which requires the expertise of dedicated accountants. If you have a team or are planning to start one, a corporation may be right for you.

More importantly, it typically doesn’t entail giving partial ownership of the business away. Instead, it’s a way of getting funding not from potential co-owners, but from potential fans and customers who want to support the business idea, but not necessarily own it.

What you give donors in exchange is entirely up to you — and typically, people will come away with early access to a product, or a special version of a product, or a meet-and-greet with the founders.

Pro tip: Choose the right platform for your crowdfunding campaign type. Some platforms are more geared towards traditional investors, while others are for donations. Learn more about crowdfunding here .

5. Venture Capital Financing

Only a very small percentage of businesses are either fit for venture capital or have access to it. All the other methods described earlier are available to the vast majority of new businesses.

If you’re looking for a significant amount of money to start your company and can prove you can quickly grow its value, then venture capital financing is probably the right move for you.

Venture capital financing usually means one or more venture capital firms make large investments in your company in exchange for preferred stock of the company — but, in addition to getting that preferred return as they would in series seed financing, venture capital investors also usually get governance rights, like a seat on the Board of Directors or approval rights on certain transactions.

VC financing typically occurs when a company can demonstrate a significant business opportunity to quickly grow the value of the company but requires significant capital to do so.

Pro tip: A lot of venture capital financing is simply being in the right room with the right people. Make sure to network extensively if this is your approach to financing.

When you’re first starting a business, you’ll need to build the foundation for a strong brand identity. Your brand identity is about your values, how you communicate concepts, and which emotions you want your customers to feel when they interact with your business. Having a consistent brand identity to promote your business will make you look more professional and help you attract new customers.

Here’s what you need to do to develop your brand identity:

1. Design a logo.

Creating the right logo for your business requires careful thought and consideration. It should be representative of your brand’s purpose and target audience, while also being memorable and distinct from competitors.

To start, you need a deep understanding of your business’s mission, values, and target audience. Think beyond what your company does and truly examine why you do what you do and who you do it for. This knowledge will serve as the foundation for your logo.

Conducting market research and identifying current logo trends can help you understand what works well for others and strategize on how to stand out. Then, start brainstorming design ideas that showcase what makes your business unique.

For instance, you could try writing out a list of words that best describe your business and what makes it special and then use those words as inspiration to start sketching ideas and concepts.

Once you have some sketches created, pick which ones you think are the best and share them with stakeholders, colleagues, and buyer personas to gather feedback and refine your design. After narrowing down a design, you’ll want to test its versatility and scalability to ensure it works well in different sizes and formats.

Pro tip: Check out this blog on designing your logo, and then try out different logo design features in Canva’s logo maker .

2. Develop a visual identity.

Your brand’s visual identity doesn’t stop at creating a logo — you’ll also need to establish guidelines for typography, color palette, imagery, and other graphic elements. The more consistent your brand is with its visuals, the more consumers will be able to recognize and trust it.

To get started, consider creating a brand mood board. Ask yourself: What kind of emotions do you want your brand to evoke? Is there a specific visual aesthetic that you want to emulate? This can help you gather visual inspiration that resonates with your brand.

Choose your color palette and typography wisely. Spend some time researching color theory , as color can have a major impact on how people perceive your brand. Make sure your typography is readable and looks good across different sizes and formats.

Additionally, you should create other visual assets such as patterns, shapes, illustrations, and icons that pair well with your color palette and typography.

Pro tip: If design and color palettes aren’t your thing, consider hiring a freelance graphic designer on LinkedIn or Fiverr to help you create your visual identity and incorporate it into your logo and overall design.

3. Craft a tagline.

In just a few words, your tagline should encapsulate your brand’s essence and communicate its value. Think of it as a written or verbal version of your logo. Both elements are created to immediately capture the attention of your audience. Even if consumers don’t remember anything about your product or service, they will remember a catchy tagline.

When crafting your tagline, keep it simple. You want your tagline to be memorable, so aim for a short phrase and focus on key benefits or unique aspects of your brand. Also consider using techniques like alliteration, rhyme, or play on words to make your tagline stand out — just make sure it aligns with the rest of your brand’s voice and tone.

Pro tip: This is another element of starting a business that could benefit from someone with experience. A marketing consultant or a content writer could help you establish a compelling tagline with the next step of developing your voice and tone.

4. Develop your voice and tone.

Your brand voice refers to the personality that your brand adopts in its communication with its audience. It provides direction on what to say and how to say it, allowing you to differentiate yourself and cut through the noise.

A well-defined brand voice helps create a distinct and memorable identity for your brand, allowing you to connect with your target audience on a deeper and more meaningful level.

When determining the appropriate voice and tone for your brand, remember that consistency is key. Ensure that your brand voice and tone align with your brand’s values, mission, and positioning. Alignment between your brand’s personality and its communication style is crucial for building trust and authenticity.

Pro tip: Adapt your voice and tone to suit the preferences and understanding of your audience. Additionally, use emotion and storytelling techniques to engage your audience and resonate with them.

5. Create brand guidelines.

Once you determine all of the previously mentioned brand elements, establish a set of brand guidelines that communicate how to appropriately use them. Having these rules and standards set in place ensures consistent and cohesive messaging and representation for your brand.

Get started by defining the rules for using your brand elements across different channels and applications, such as digital and print media, social media profiles, web design, packaging, and any other relevant materials.

Show practical examples of correct and incorrect usage scenarios to demonstrate the do’s and don’ts of brand representation. This helps stakeholders and users understand the guidelines and their application. You can also offer your team templates or mock-ups to ensure correct implementation.

Once the brand guidelines are set, distribute them to internal stakeholders and relevant external partners. To make sure everyone’s on the same page, take the time to review the guidelines with everyone and consider conducting training sessions if necessary.

As your brand evolves, so should your brand guidelines. Continuously review and update them to reflect any changes or refinements. Keep the guidelines easily accessible and communicate any updates effectively.

Pro tip: A writing style guide is a great place to start when creating brand guidelines. Check out this blog on brand style guide examples.

Starting a business online is a little different from starting a traditional business. Here are some important steps for starting and scaling your business online.

1. Determine your niche and business idea.

Your business niche is the target focus area for your product or service. It’s important to choose a niche because customers like brands and businesses that specifically cater to their needs. Most customers are more likely to purchase products or services from a brand that provides personalized experiences.

When determining your niche and business idea, first identify your target audience and specify everything from their age to their interests. Then, use that information to figure out their principal need. If your product doesn’t resolve a specific need, your business will fail to get off the ground.

Pro tip: You should have a good idea of the market at this point. Use that knowledge to position yourself in a way that differentiates you from your competitors.

2. Conduct market research.

Conduct market research to understand what product or service you should offer, whom you should serve, and where you face the stiffest competition. From physical goods to digital downloads, understanding your target market and competitors will help you determine how to best position your product.

Your research should help you create a strong selling proposition . In other words, what makes your business unique? Why should someone buy from you?

Pro tip: Sometimes, market research is as easy as calling around to competitors and getting a quote on services. Make sure your pricing is competitive but not so low as to be unsustainable.

3. Learn online business laws.

While online businesses may require fewer licenses and permits than traditional businesses, there are still legal requirements that you will need to adhere to. Be sure to check:

• What kind of business license (if any) do you need to start operations?
• What legal structure makes the most sense for your company?
• Are there any permits that you need to obtain?
• Are there any inspections that you need to pass?
• Do you need a sales tax license?
• Are there any specific regulations applicable to online businesses only?
• What are the laws regarding hiring contractors and hiring employees?

Pro tip: Check out this article for more information on starting an online business and navigating online laws.

4 . Make sure your business is insured.

Depending on your business type, you may be required by state law to be both licensed and insured. HVAC businesses have a lot of liability as they involve both plumbing and electricity. I spoke with several insurance agents before deciding on the best insurance for my business needs.

There are also many different business insurance types, such as:

• Liability insurance.
• Worker’s comp.
• Property insurance (think your business location, tools, and equipment you use).
• And more. Be sure to research these different insurance types and purchase the necessary ones.

Pro tip: Check out this article on small business insurance.

5. Create a website.

After handling the research, taking care of legalities, and honing your products or services, it is time to create your website . When creating your website, you will need to choose a strong ecommerce platform that will allow you to sell products online.

Pro tip: Check out Hubspot’s free CMS tool for website building here.

6. Set up shop.

Once your website is complete, it’s time to add products or services to your store. When adding your products, pay attention to product images and descriptions. Having a crisp image and a detailed but concise description will help your audience maneuver your website smoothly.

After you have finished setting up your store, it’s critical to ensure you offer a seamless shipping or delivery experience to your buyers. For example, you can use HubSpot to manage quality control before you ship products out.

Finally, you want to make sure everything is working before you hit the live button on your website. Make sure that everything is clickable and that all pages look good across all devices and browsers. Once you’ve checked that, you are ready to go live.

Pro tip: If you take credit card information on your website, you will need to abide by compliance laws that ensure the safety of sensitive data. Read more on credit card compliance .

7. Create a marketing plan.

You’ve created an awesome product, and now it’s time to get the word out. In other words, it’s time to grow your audience. There are numerous ways to reach your target customer, including:

• Social media : Use hashtags and paid ads to expand your reach.
• Influencer marketing : Send free samples to “celebrities” in your niche.
• Facebook groups : Connect with your target market on this platform.
• Google advertising : Put your products in front of people all over the web.
• Content marketing : Publish blog posts to bring organic traffic to your site.
• Word-of-mouth : Encourage customers to spread the word.
• YouTube videos : Start a channel to showcase your products.

Pro Tip: Google ads and LinkedIn ads regularly offer discounts or free ad money; consider using these promos to try online advertisements out.

8 . Grow your business.

You’ve heard it said that in business, you’re either growing or you’re dying. Here are a couple of tips for growing your business online:

• Reduce the amount of time it takes online viewers to receive value from you and your brand.
• Answer the questions no one in your industry is answering — for example, a lot of companies won’t talk about pricing, forcing customers to keep looking for someone who will.
• Create a dynamic website that changes with the times. Update your images and writing to reflect what’s happening with your business now, and ensure your website isn’t dating you.
• Invest in content and SEO . They aren’t cheap, but they are really important for being found online, organically.

Pro tip: Check out this blog on how to become an SEO expert, according to HubSpot’s SEO team.

9. Watch your income and expenditures closely.

The first year of your business is an essential set point for discovering your overhead and your profit. Have a date in mind of when you want your business to start turning a profit and a solid plan for if you aren’t meeting that goal. Read further on potential exit strategies below.

Pro tip: Use a free business budget template to monitor your finances.

10. Plan for an exit strategy.

If you’re like me, you didn’t consider an exit strategy when thinking up your business. You probably assumed you’d run your business for the foreseeable future. However, economic uncertainty or unexpected success can both impact the end of your business. In fact, 90% of startups fail , which makes it a wise choice to know under what circumstances you would close down your business.

You could also experience unexpected buzz and success and be offered a buyout. A good exit strategy will plan for this as well. What amount of money would make selling worth it? Consider also how long you would have to run your business before considering offers. Some want to sell high and fast, whereas other business owners want to see where things go during a set amount of time.

An exit strategy could also include who you want to inherit your business, maybe family or an employee.

Pro tip: Check out this blog on the importance of having an exit strategy.

Next Steps: Getting Ready to Launch Your Business

I know from experience that being a small business owner isn’t easy, but with the right plan, you can set up your business for success. Be sure to check and know your requirements, have a solid business plan, and submit your legal paperwork before you take your business live. Once you have a solid business plan and the financing to execute your goals, you’ll be well on the path to launching a successful enterprise.

Editor’s note: This post was originally published in August 2019 and has been updated for comprehensiveness.

Don't forget to share this post!

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More From Forbes

Crisis management for startups: navigating challenges and uncertainties.

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Padmakumar Nair, CEO & Cofounder of Ennoventure Inc.

Handling crises in startups typically revolves around managing time and money effectively. The startup founders and management have to leverage the talent of employees and the power of technology to deliver growth within the available time and budget. Funding-backed startups can face crises related to financial needs and commitments to investors, impacting reputation, confidence and brand. Crises start small, escalating into major challenges. Analysis can involve time, money, external funding, and the company’s runway to adapt while pursuing product-market fit, scalability or pivoting.

We, as a company, had to go through roadblocks like budget constraints, challenging deadlines and resource bandwidth issues. That’s when we had to make critical and effective decisions like creating a lean project management strategy and focusing on delivering excellence. With this insight, here are some of my insights into how startups can navigate crises.

Recruiting The Right Professional Team

Utilize referrals and establish methods to quantify their accomplishments. Align their expertise with the current stage of the company and gather insights on their achievements and the challenges they encountered. Distinguish between projects they contributed to and those they led, recognizing the value of ownership in startups.

Outline specific scenarios and prompt them to relate these to analogous situations from their past roles. Inquire about their actions, measurements and adaptability in response to challenges.

Best High-Yield Savings Accounts Of 2024

Best 5% interest savings accounts of 2024, building a culture of innovation without losing star employees.

Innovation challenges the status quo, leading to unforeseen crises. Overcoming these relies on employees’ ingenuity. Losing a high-performing employee in a startup, without an immediate replacement and concentrated knowledge, can triggers crises. Limited resources hinder redundancy, making retaining top-tier employees challenging. Fostering a culture that nurtures and energizes employees is crucial.

Provide clear, candid feedback to employees using data and narratives. Ambiguity can lead to ineffective retention or the departure of critical employees. Beyond formal engagement, employees seek challenges, alignment with a meaningful purpose, and understanding the broader impact of their work.

Choosing Between Outsourcing, Insourcing And Consulting

Capital significantly shapes our approach to outsourcing and consulting. Consultants swiftly address issues or scale operations, especially when expertise isn’t proprietary. Outsourcing is ideal for recurring services when in-house team building is impractical. If sustained full-time work is lacking, outsourcing can be preferable. However, risk mitigation demands careful consideration of data security, documentation, legal protections and jurisdictions.

When selecting consultants, prioritize those who leverage existing solutions. Beware of consultants who push for unnecessary overhauls, escalating costs and timelines and potentially leading to crises if mishandled.

Risk Identification And Planned Mitigation Measures

For funded startups, effectively managing capital deployment is essential for anticipating challenges and seizing opportunities. Unforeseen issues can redirect funds toward hiring, replacing, reengineering or purchasing solutions, impacting other projects and causing ripple effects. Aligning funding timelines with deliverables and targets can prevent late problem identification, which can lead to catastrophic consequences and hidden costs.

Define challenges, set resolution timelines and specify required investments. Management should monitor progress closely, prioritizing detailed information over vague assurances of problem resolution. Clear documentation of identified problems ensures equal understanding among stakeholders. Issues should transparently surface based on the risk profile, which is crucial for remote teams.

Understanding When A Startup Is Undergoing ‘Indigestion’

When startups face multiple project opportunities promising revenue but demanding excessive customization, unrelated research, or non-core services, they may risk spreading themselves too thin. This strains resource utilization and prioritization efforts. Consequently, the brand may lose sight of its long-term vision or core product offering.

The internal brand custodian/s should ensure that new feature additions are not short-term solutions or one-time measures that only benefit a single outlier customer or exploit an untested opportunity. The goal should be to stay focused on the core offering and user experience, rather than getting sidetracked by seemingly enticing new opportunities that could ultimately hinder growth and success.

Velocity In Problem-Solving That Ensures The Delivery Of Projected Outcomes

Problems should not be allowed to fester and increase in scale, lest they explode into a crisis. Problems can have “butterfly effects” leading to missed timelines, delayed payments, unsatisfied customers and related impacts on funding.

Implement a robust, standardized tracking system: “Checking in” involves scheduled reviews to track progress and address issues, while automatic updates trigger notifications to keep stakeholders informed. Standardize update formats to maintain clarity and consistency.

Deploying Capital Efficiently, Even When Flushed With Funds

Rapidly growing startups often exceed funding expectations, which can lead to hasty decisions and depleting cash reserves in areas like executive compensation, hiring, marketing, expansion and branding. Unchecked spending can drain capital, resulting in crises amid unforeseen market shifts. Even with identified solutions, startups may lack the funds to implement them.

To mitigate risks amid market changes or funding shifts, cut costs smartly and test smaller investments before scaling up. Efficiently deploy capital, especially in new markets. Seek team feedback on alternative approaches to investing in people, software or infrastructure to optimize resource allocation and adapt to evolving circumstances.

Differentiating Between Genuine And Selfish Offers Of Support

As a startup gains traction, achieves product-market fit or secures funding rounds, it attracts attention. Not all parties have the startup’s best interests. Many aim to persuade leaders to invest in their advisory or support services. It’s crucial to discern between genuine and potentially harmful entities.

Record all interactions, prioritizing legally sound agreements. Establish a communication protocol for consistent engagement with external parties. Set explicit timelines and measurable metrics for objectives. Introduce a reporting system to monitor progress.

Identifying The Right Partner Who Aligns With The Vision

Partnerships in startups involve members of the founding team, vendors, advisors and investors. Choosing the right partners can either support the leadership during crises or create new challenges. Partners have a significant say in decisions such as executive compensation, investments, technology, pricing, hiring, client selection and expansion plans.

Align a partner’s strengths with your startup’s needs and long-term goals. Clearly define their role and purpose upfront. Evaluate based on time-bound objectives, challenges and funds. Avoid premature or mismatched partnerships using a simple mapping framework.

Crisis As An Inevitable Opportunity

Navigating a crisis helps build resilience, increasing the odds of survival and success. Many of the world’s most valuable startups have grown from ideas and pivots engineered during crises. Such moments can serve as catalysts to reevaluate priorities, bringing the spirit of the brand to the forefront and inspiring shared stories that bind the team and the brand. Through crises, brands discover their most valuable employees—those who truly embody the brand’s values.

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Written by Jesse Sumrak | March 12, 2024

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Can there really be that many good business ideas? Yes, there can. This is actually our filtered-down list—you should have seen how many other almost-good ideas nearly made the cut.

Whether you’re an experienced entrepreneur or brand new to the scene, we’ve compiled the best-of-the-best business ideas for you to bring to life in 2024. These range from freelance writing to career coaching to dog walking and everything in between.

Ready to find your next big idea? Keep scrolling.

What Makes a Business Idea Good or Bad?

It’s not always just the idea you need to think about. Sometimes it’s you, the situation, market circumstances, or industry trends.

One business idea can be good today and bad tomorrow. It all depends on various factors (both predictable and unpredictable). Not every good business idea will be right for you, and that’s OK.

Fortunately for you, you don’t need 50 good business ideas—you really just need one. Here’s what to keep in mind when finding the right startup idea :

• Personal Interests: Don’t start a freelance writing business if you hate writing. Align your interests with your business. That’s the freedom you get when starting your own business—don’t throw it away from the get-go.
• Bandwidth: Some business ideas require more input and investment. For example, opening and managing a new Italian restaurant will be more time-consuming than launching a restaurant consulting business. Neither is better than the other—just under your capacity and limitations.
• Budget: Starting a business isn’t free. Some ideas cost less than others, though. Keep in mind your budget constraints when planning your venture.
• Trends: You want to be on the climbing side of a trend curve—not the decline. Thinking of starting a business centered around Pokémon GO? You’re only about 6 years too late.
• Problem-Solving: Find a business idea that solves a problem. Start with the issue, then find a product or service solution.
• Renovation: A good business idea doesn’t need to be innovative—it can be renovative. Fix a broken idea or build upon an already successful one.

Once you’ve found the right business idea, don’t quit your day job (yet). Test it first.

54 Good Business Ideas in 2024

We’ve broken down these good business ideas into a few different sections. Here’s how they’re categorized:

Types of Good Business Ideas

Low-Cost Startup Ideas

Online Business Ideas

Remote Business Ideas

Freelance Ideas

Business Ideas for Women

Side Hustle Ideas

Recession-Proof Business Ideas

Don’t Skip: How to Start a Business from Scratch (Step-By-Step Process)

7 Good Low-Cost Startup Ideas

Starting a business can be expensive. Rent, wages, inventory, advertising, web hosting, marketing—it all starts to add up quickly.

Fortunately, not every good business idea costs a fortune. You can find plenty that cost little to no cash to launch. Let’s start with these low-cost startup ideas first :

1. Freelance Writing: Turns words into income as a for-hire freelance writer . Find an industry that interests you and start writing. This could be thought-leadership articles, SEO-driven content, email campaigns, social media posts, or web pages.

2. Consulting: Freelancers tend to provide deliverables, while consultants provide advice, strategy, and expertise. If you’ve been in an industry for quite some time, there’s a good chance businesses will pay for your wisdom as a consultant . Develop expertise in emerging industries, like AI, to be an early adopter in a niche agency.

3. Course Creating: Have lucrative know-how? Bundle it all up into a well-designed online class and sell it as a course creator . We’re all for it—that’s what we do at Foundr.

4. Podcasting: Total podcast listeners are growing 20% each year . Jump in on the action by creating your own audio-based show. Here’s how to make your podcast stand out from the rest .

5. Blogging: Everyone likes blogs—you’re reading one right now. If you like to write, drive traffic to a website with blogging . Once you have an audience, you can monetize your visitors with ads, ecommerce, sponsorships, donations, and affiliate marketing. Speaking of affiliate marketing…

6. Affiliate Marketing: Instead of selling your own products, sell other businesses’ goods. You’ll make a commission every time someone clicks through your links and makes a purchase. Learn how Catena Media’s Erik Bergman used affiliate marketing to launch an IPO (initial public offering) his consultancy firm.

7. Website Building: Over 627,000 new businesses open each year in the US, and every single one of them needs a website. If you have a knack for building them, sell your services as a website builder. Here’s how to build sites quickly .

6 Good Online Business Ideas for Beginners

We won’t pretend starting a business is easy. It comes with a suite of challenges that bring even the best entrepreneurs to despair, headaches, and tears.

However, it’s worth the challenge.

Lucky for you, some business ideas are easier to start than others. If you’ve never dabbled in launching a business, then these online business ideas for beginners are a great place to start.

8. Ecommerce: Ecommerce is just selling stuff on the internet. Find a product , sell it online, and make a killing. That’s easier said than done, but our guide on how to start an ecommerce business will walk you through the entire process.

9. Virtual Assisting: Help businesses, executives, and freelancers schedule appointments, make phone calls, submit invoices, and manage basic finances as a virtual assistant .

10. Social Media Managing: Many businesses don’t have the bandwidth to manage social networks across Facebook, Twitter, LinkedIn, Instagram, Pinterest, and TikTok ( yes, TikTok ). If you’re a savvy social media marketer, you can provide management services across paid and organic channels.

11. Branding: Designing a top-notch logo is hard. Writing a clever tagline is a challenge. Tying it all together into one cohesive brand—that’s the struggle of a branding expert. If you have a talent for it, sell your services in a freelancing or consulting capacity.

12. Domain Flipping: Instead of building websites from scratch, buy existing sites from domain marketplaces. They could be in great, semi-rough, or poor condition—your job is to polish them up and sell them for a profit.

13. Subscription Box Curating: Create a subscription box for a niche in need. There’s a lot of competition in this space, so you’ll need to be clever with your offering and targeting—but Henrik Werdelin built a 9-figure subscription box business just for dogs .

4 Good Remote Business Ideas

New business ideas have blossomed due to the acceptance of remote work. Give these remote work ideas a try to launch a business and help alleviate unexplored problems.

14. Wellness Programming: Remote work isn’t great for everyone—some folks struggle with stress and isolation. As a wellness programmer, you can provide ways to relax, decompress, and focus on mental and emotional wellbeing. This could be in the form of yoga, meditation, stretching, training, or just healthy habits.

15. Remote Work Services: Provide remote-empowering solutions to businesses in need. While it feels like remote started decades ago, some companies are still learning to adapt and cope. Offer services to boost collaboration or fill holes left open by work-from-home policies.

16. Virtual Fitness Training: Peloton doesn’t have a monopoly on online fitness—some people want other forms of exercise, and others prefer a more local community feel. Become a hyper-specialized fitness trainer in specific niches, such as ultramarathon training, rowing, ski mountaineering, or rock climbing.

17. Content Marketing: Upstart brands and corporations alike are looking for help to churn out content for their organic channels. As a content marketer , you can offer to create pieces like newsletters, website articles, social media copy, or short-form videos, all from the comfort of a home office.

7 Good Freelance Job Ideas

Freelancing has been on the up and up in recent years, and the pandemic has only been a catalyst for the movement. Especially with the Great Resignation upon us , companies need freelancers to step up to the plate and take over heaps of work.

If you have the right skill set, you can fulfill that need with one of these freelance job ideas .

18. Video Shooting and Editing: Video content is all the rage, but it’s not easy for busy businesses to produce. If you know your way around a camera and video editing software, you can find plenty of work as a freelance video specialist.

19. Career Coaching: Help clients find their way through their dream careers. You might guide them towards a more appropriate, fulfilling job, or you could give them the tools they need to negotiate their next big promotion.

20. Public Relations: Help businesses land press coverage with media kits, networking, press releases, and storytelling. It’s a demanding job, but it’s right if you like working in a non-stop, fast-paced environment.

21. Marketing: Use content marketing, email, social media, and advertising to market your clients’ products and services . Marketing is all-encompassing, and you’ll likely choose to niche down to a specific channel or strategy down the road.

22. App Developing: Apps are becoming a must-have part of most businesses’ products and services. However, finding an available engineer to build an app is near impossible. If you know your way around Java , Swift , or Kotlin , you’ll be in high demand for mobile app development.

23. Integrating: Some leaders inspire, others innovate, and a few dream. Integrators get things done. They take dreams and aspirations and turn them into reality. It’s a hands-on job, but it’s high-visibility and high-reward.

24. AI Consultant : With so many AI tools available , businesses are struggling to know how to implement them. Be someone’s go-to for AI implementation and consulting.

12 Good Business Ideas for Women Entrepreneurs

There are 114% more women entrepreneurs now than 20 years ago. Women are looking for more autonomy, work-life balance, and financial freedom—and they’re finding it on their own rather than waiting for the corporate world to change.

If you’re looking for a good business idea that promises location flexibility and work schedule independence, we have a few thoughts. Plus, these business ideas for women entrepreneurs are typically in women-dominated industries—helping you escape the gender discrimination more prevalent in male-dominated sectors.

25. Etsy Shop: Esty is the go-to marketplace for creative entrepreneurs. Want to make one-of-a-kind products? This is where to go to sell them.

26. Interior Designing: Have an eye for design? Become a residential or commercial interior designer. Ergonomic setups and feng shui (arranging furniture for balance) are becoming more of a priority in the business world, meaning more opportunities for you.

27. Graphic Designing: Logos, landing pages, websites, hero images, email campaigns—anything with pixels needs a graphic designer’s touch. While tools like Canva are growing in popularity, they’ll never replace a need for graphic design experts.

28. Dropshipping: Sell products without storing them in your home or a warehouse. It’s the perfect anti-Lula Roe way to sell goods without risking inventory issues.

29. Life Coaching: Coaching isn’t just for career advice. Sometimes, people need life advice. It’s less therapy and more guidance.

30. Tutoring: Online course instructing is when you want to teach the masses—tutoring is for more private 1:1 teaching. Have an in-demand skill? There’s a good chance someone will pay you to teach it to them.

31. Real Estate: Purchase investment properties, find a tenant to pay rent (hopefully covering the monthly mortgage), and sell the property after it appreciates substantially. That’s real estate for you.

32. Wedding Planning: A wedding is the most important day of two partners’ lives. If you can navigate all the moving parts and piece together something beautiful, you’ll be on everyone’s contact list come springtime.

33. Personal Chef: You don’t need to own a restaurant to be a chef. More individuals and families are hiring personal chefs to cook in private settings.

34: Event Planning: Conferences, parties, meetings, conventions, trade shows—they need talented event planners to come together. If that sounds like you, you’ll always have a job in event planning.

35. Makeup Artist: Makeup isn’t as easy as it looks in the commercials, and that’s why makeup artists are killing it on YouTube, Instagram, and TikTok showing people how it’s done.

36. Cleaning Business: Everyone needs cleaning: commercial and residential. If you don’t mind getting your hands dirty (or managing the business), you’ll find plenty of messy people begging for your help.

14 Good Side Hustle Ideas

Some ideas start better as a side hustle until they bloom to maturity. Side hustles (for better or worse) are less committing than full-time ventures. You can often grow them on the side while maintaining your 9-to-5 until the timing is right .

You also have the option to keep them as a side hustle. Not everyone wants to quit their full-time job and become an all-in entrepreneur, and that’s OK. These are the perfect side hustle jobs for pursuing a passion, making an extra buck, or laying the roots for your next business.

37. Ghostwriting: If you don’t mind trading credit for income, ghostwriting can be a lucrative business idea.

38. Podcast Editing: Some people thrive doing podcast interviews, but they can’t navigate the editing process. That’s where you come in.

39. Influencer Marketing Specialist: Most businesses are hesitant to start with influencer marketing simply because they don’t know how. Tell them what they need to know and hold their hand through the process.

40. Lead Generation Consulting: Sales aren’t always the root of the problem—sometimes, it’s lead generation. Guide a client through how they can build and optimize their lead funnel.

41. Browser Extension Developing: Mobile apps are nice, but sometimes a built-in browser extension is more appropriate.

42. Data Scientist: Know your way around numbers? Businesses have more data than they know what to do with. Help them understand the stories behind the numbers.

43. Quality Assurance Testing: There’s a lot of pressure for apps to be built quickly, but that doesn’t mean quality assurance isn’t a priority. Your job is to break apps so that developers can fix them before they go public.

44. Public Speaking Coaching: Public speaking will likely always be a struggle for a large number of individuals. If you can help executives and would-be presenters overcome their fears and step up to the stage, you’ll have a job in public speaking coaching.

45. Media Training: Don’t put an executive in front of a microphone until they’ve been trained on what to do (and more importantly: what not to do). It’s your job to make sure they don’t screw up.

46. Contract Writing: Know your way around legalese? Help businesses write up contracts.

47. Translating: If you’re bilingual, there’s a good chance you can find gigs for translating the two languages.

48 Dog Walking: Just because more people are working from home doesn’t mean they don’t want a dog walker. Sometimes, they don’t want to leave the house, and other times they can’t with illness or kiddos.

49. Pet Sitting: People want to travel and see the world, but they can’t always bring their furry friend. Keep them company for payment.

50. Travel and Experience Host: If you live in a major metropolitan city or somewhere that’s a destination for travelers, it’s easy to take advantage of platforms like Airbnb to host guests in your home or plan custom experiences that only a local can provide. Whether it’s a food tour in your neighborhood or a guided historical hike, travelers will fork out cash to experience your home like you do.

4 Good Business Ideas During a Recession

Sketchy economic times require backup plans. With 9 to 5 jobs in flux, starting a business during a recession is a secure way to make side income and take advantage of shifts in the market.

51. Finance Coach: With a tightening economy comes tightening budgets. As a finance coach, you can help families objectively adjust their monthly budgets and offer suggestions on cutting costs to free up cash.

52. Content Creator: Making entertaining and engaging content for platforms like TikTok, Twitch, or YouTube doesn’t seem like a stable idea, but it meets two criteria of a recession-proof business. First, it’s low-cost to start. All you need is a phone, ideas, and your personality. Second, it meets consumers’ demands during tight economic conditions—escapism and low-cost entertainment.

53. Home Repair: No matter what’s happening with S&P 500, pipes will burst, lights will flicker, and furnaces wig out. Starting a home repair business will keep you in demand no matter the economic climate because what can go wrong will go wrong with a house.

54. Cleaning Services: Almost half the families in America have both parents employed, meaning there’s not much time to make the house squeaky clean for a hosting. It doesn’t matter if the economy is up or down; people are willing to pay for a cleaning service on the regular or in a pinch before their in-laws come from the weekend.

Keep Learning: How to Start an Online Business

Bring Your Good Idea to Life

Once you’ve zeroed in on your good business idea, it’s time to make it a reality. However, you need more than just an idea—you need skills and know-how.

That’s where we can help.

Sign up foundr+ for $1 , and we’ll help you every step of the way along your business journey.

About Jesse Sumrak

Jesse Sumrak is a writing zealot focused on creating killer content. He’s spent almost a decade writing about startup, marketing, and entrepreneurship topics, having built and sold his own post-apocalyptic fitness bootstrapped business. A writer by day and a peak bagger by night (and early early morning), you can usually find Jesse preparing for the apocalypse on a precipitous peak somewhere in the Rocky Mountains of Colorado.

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A never-ending list of business ideas and problems to solve

Feel free to take, borrow, mold, modify, spread, and get rich.

Paul Graves

Hey, gang. I decided to start posting my business ideas. I’ve collected these for years. They’re going to waste sitting in my head, or in a 90% blank Moleskine. I may use one sometime. I most likely will use none. I may just watch you get rich. Go make that “f*ck you money.”

The point is, there’re a million ways to make the world better. To solve large problems that are overlooked time and time again. Accepted as “just the way it is.”

There’s never been a better time to start a new business . Sometimes you simply need an idea that inspires you. The right idea can help you find a purpose. And the purpose is where it all starts — the WHY.

Because remember, passion is a bunch of BS. Passion is chasing shiny red balls and doing what’s immediately rewarding. (which means no growth) On the other hand, a purpose is significant. You earn a purpose by doing what is fun even when it sucks. Even when it does NOT feel good.

Anyhow, enjoy. I will continue to update this list going forward. If you seriously consider running with one of these, let me know. Maybe I’ll invest in you ;-)

The only idea not here is the one I’m currently working on.

Your friend, Paul

I GIVE YOU, ZE’ LIST:

• An app or device(!) that awakens you with ready-to-go meditations and focus exercises. They always want us to do it in the morning, but why separate it? We’re already in bed. Find a way to make it part of rising. Hit the off button and on turns the guided meditation and wake up sequences. Updates by cloud and changes your life. Makes it a habit, every morning. Can also have nighttime routines built into the device. A device would make this easier — too many apps these days. Please don’t make another. Make it a beautiful device you launch on Kickstarter or Indiegogo. Alright, moving on.
• A Pandora for fashion. You name your favorite brands, sizes, shoes, etc. Whatever you like. Our database has all the top brands’ style profiles, size profiles, etc. in the system. If you love how H&M size L fits, for example, we know you’d also like this brand in size M, or this company’s shirts feel and appearance. It’s so hard to shop because guys are LOST. Don’t just be like GQ or Trunk Club; that’s lame. Bring SCIENCE to it. Measure, catalog, match.
• Instagram for the crappy things in life . The stuff that makes us all human. A humongous dump. A pimple on your lip on the night of a hot date. We all have shit go wrong; it shouldn’t be so curated for happy happy happy. A place to post the shitty stuff.
• Buy books that changed your life and give away to real people, follow their story. You (the biz owner) will send the client a pic of who claimed their book. The client can optionally leave their info in the book in case the receiver wants to thank/contact. If a book changed your life, be certain someone else that’s thirsty for knowledge and change in life will receive it.
• Prepaid travel bookings site — must be a way to book trips AND plane tickets if enough time in advance under a group name. Don’t have to put in everyone’s name up front. Makes it impossible for many young adults to plan travel. Everyone is so non-committal, and what if you find a new girlfriend or friends to go with you? Allow ability to add names later. Probably not possible, but a thought.
• Online dating site with constant online mini video speed dates going on. Hop on, hop in, next. Could be addicting. If vote yes, both get to contact each other, if either votes no, it disappears forever. Get past the TEXT and into Video and real conversation. 30-second rounds. Monthly access could be pricey due to novelty. Maybe $199 per month for example.
• Start a designation and site for Digital/Electronic Organizer Professionals (Business to Consumer). Someone who can help people learn how to handle the MOUNTAIN of emails, records, accounts, passwords, and services. Someone trustworthy, experienced and highly professional could make a killing at this. Like a closet organizer or someone who helps with clutter, but for your digital life. Think of the poor old guy swimming in a 10,000 email inbox with 98 icons on his desktop.
• Create a secure digital archive for all conversations. Imagine a vault that synced at your request and held all conversations with your mother, or your best friend. The Facebook messages, emails, and even text messages. All contained in one vault for your mom. Our messaging and conversations are so fragmented now. We need a place that brings them all together, and saves them forever.
• A travel rapid deals site that takes advantage of people’s spontaneous impulses and lets them feel good about it. Set your city (mine is Columbus) and imagine getting sent rapid-fire deals when it’s the absolute BEST price and value. The algorithms on our site (let’s call it Abiri.com) scan 24/7 for all travel deals from your home city. We compare prices and offerings to historical data, and when a moment for true travel arbitrag e arises, we notify you. It will be a message like “A flight and hotel package to Dublin, Ireland is pricing the lowest it has in 6 years. Reserve now?” So, it’s like value investing in stocks, but in travel. Book your spontaneous travel, and feel good about it because you are getting historically significant values. This, of course, is a humongous idea, but it does solve a problem: we want to travel, and we want to go where our heart tells us to, but we don’t know when or why the trip costs what it does. Are we actually getting a good deal? Are we buying smart? This takes that analysis paralysis out of the equation. It’s a nifty tool always to have running in your life.
• There’s probably a service that lets you schedule personal texts, email and social media messages from one place. But, if not, look into that. (Like CoSchedule that’s used for blogs, but for personal use. To manage our crazy “social lives” we think we have)
• A private social hub or network/app for lovers, partners, or married people. A private wall/board for them to share, profess, write, and create. A private little world, meeting space, for them on the internet. Like a room in a home, a room for them online. It can capture your relationship using technology in one place, sync to social media, etc. You know what I’m sayin, yo?
• A dating app or singles site where the swiping is done on 15 second videos that everyone puts up. Your ‘profile picture’ is an automatic video you create. An introduction and quick hello. Must be taken with the phone also, real-time. The profile pic is an automatic playing video, like Vine was. This can let you know so much more about a person. All videos will be approved by moderators, always. To avoid the obvious dangers of scammers, pornography, etc. Easy to approve a 15 second video. If you like what you see, you can then click to see more photos, and a bio, etc.

Much, much more to come.

Written by Paul Graves

Entitled, white, conservative, straight male. Fitness fanatic. Piano man.

Text to speech

60 Problem Solving Business Ideas To Start In [2024]

Are you interested in problem solving business ideas? If you want to establish a business that solves daily difficulties, there are several areas you might focus on.

This post highlights some creative problem-solving business ideas you can consider.

In this list of ideas, you can find:

• Home-based businesses.
• Low-investment online business ideas that solve problems.
• Unique business opportunities you can start from home.

Here is the full list:

1. Start an appliance repair business

An appliance repair business helps clients install, repair, and maintain common household appliances like microwaves, dishwashers, refrigerators, cookers, etc. An appliance repair technician can specialize in certain lines of appliances or offer general services.

To become an appliance repair technician, apply for the prerequisite training course and focus on acquiring the necessary work experience. You may work under an appliance engineer and kickstart your business when you have relevant skills.

How much you can make: $4,000 — $100,000/month

Retro Radio Farm founder, Allen Chiang, earns $50k per year as a side business restoring old radios and offering Bluetooth MP3 upgrades, with the business growing 20% every year.

2. Start an equipment cleaning & repair business

The equipment repair market is witnessing an upsurge and will maintain the momentum over the next decade.

Given the rise in demand for electronic products and home appliances, there will be an increase in equipment cleaning and repair, services critical to the continued functionality of various equipment. It is only a matter of time before an appliance break needs a bit of upkeep or even some cleaning and greasing.

Thus, if you have basic mechanical or electrical engineering skills and experience, why not take your knack for keeping things running and turn it into a good equipment cleaning and repair business? To start, you may operate door-to-door from your neighborhood and open a physical location as the business grows.

How much you can make: $708,333/month

How long does it take to build: 180 days (?)

This case study follows the story of a couple who bought a profitable but limited manufacturing company for $535,000, revamped it, and took it in a new direction to grow their annual revenues to approximately $10,000,000 by developing ultrasonic equipment that addressed industrial cleaning using water-based detergents instead of environmentally toxic solvents.

3. Start an auto repair business

Many people just love to tinker with, fix and repair cars. This is an all-consuming hobby for some people. They like to take things apart and figure out how things work. The process of fixing and repairing cars is almost therapeutic for them.

An auto repair business is a rewarding way to make extra money or build an entire business.

You can do it in the comforts of your own home, working around your schedule and getting paid handsomely for it. The United States automotive service market is expected to reach $75B by 2026 .

How much you can make: $415,000/month

How long does it take to build: 40 days (?)

Finish Line Towing & Auto Repair is Wisconsin's largest roadside assistance provider, bringing in $5 million in annual sales through its dedication to customer service, effective dispatching, and clean service, with a goal of expanding to other markets in Wisconsin and Illinois.

4. Start an ac repair business

Research shows the HVAC market will grow at a CAGR of 6.1% and reach $82.5 billion in the next few years.

The growing construction business in major emerging economies and the ever-increasing end-user markets, such as data center markets, are some of the major factors driving the growth of the HVAC services market.

Like other electrical appliances, HVAC units break often and require regular maintenance. As a result, the demand for HVAC repair is high.

Therefore, starting an AC repair business can be profitable. To start, you need a skilled AC repair technical team. Target commercial and residential customers, and market your business online as most people search for AC repair services through the web.

How much you can make: $200,000 — $1,878,618/month

TruTech Tools, LTD is one of the largest online stores in the niche market of tools and test instruments for HVAC/R Technicians, with $16 million in sales in 2020 and 20% YoY growth thanks to a focus on providing an exceptional customer experience and staying true to their core values.

5. Start a chimney repair business

Brick and stone chimneys require maintenance and upgrade to keep them structurally sound and functional. Some regular chimney repair tasks will include repairing and replacing rain pots, rebuilding chimney crowns, and installing new bases and flashing counters.

Thus, starting your own chimney repair business can be a very profitable, so long as you have basic masonry skills and experience. To start, you can offer the services to your neighbors just to showcase what your business offers. If you are not an experienced mason, you can hire skilled professionals and outsource the orders to them.

How much you can make: $21,000/month

Patriot Chimney, a Virginia-based chimney repair company founded by three friends, generated over $212,000 in its first year of operation, using a mix of digital and in-person marketing and customer retention strategies, and plans to expand its business and customer base with new initiatives including an online store and non-profit organization.

6. Start a language translation service

Language translation services bridge the linguistic barriers, helping businesses reach a wider audience outside of a single language. A language translation job is an opportunity to cover a wide range of topics and meet people from different cultures.

To become a language translator , master a second language and earn some experience so you become fluent in the second language.

How much you can make: $40,000 — $550,000/month

How long does it take to build: 70 days (?)

DEMAN Translations grew from 6 employees and 1.5 million euros in turnover in 2015 to 17 team members and 3.5 million euros in sales in 2020 after acquiring 12 other translation agencies, with a goal to reach 6 million euros this year and 10 million euros in 2022.

7. Create an online course

An online course business involves creating and selling digital classes teaching specialized skills or knowledge to subscribed students.

As an entrepreneurial course creator, you identify educational gaps around topics you have expertise in and develop engaging video lessons and supplementary materials.

With flexibility around self-paced or cohort-based structures, building a student base provides passive income potential.

For founders who enjoy information-sharing, launching an online course platform presents a lucrative way to monetize your instructional talents with small startup costs by serving eager lifelong learners seeking convenient access to emerging subjects.

How much you can make: $350 — $1,000,000/month

How much does it cost to start: $2,000 (?)

How long does it take to build: 88 days (?)

Learn how one couple created a successful personal finance blog, The Savvy Couple, that now makes over $20,000 per month and has sold thousands of digital workbooks and courses, by focusing on purposeful content and optimizing their ROI with efficient time management.

8. Start a child care business

Starting a childcare business is a great way to build a steady income. You will have the opportunity to be your boss and set your hours even from home. You will have the satisfaction of building one-on-one relationships with children and watching them grow over the years.

A childcare business is an excellent idea. It is both a personal and economical investment for its owners. This is especially true if you are considering starting your non-profit organization or becoming licensed to provide child care. Running a childcare business allows you to help children develop while also making money. As with any business endeavor, running a childcare business has its ups and downs, but it can be very rewarding.

How long does it take to build: 60 days (?)

9. Become a social media influencer

Social media has become integral to people's lives and daily routines. Given the importance of social media, brands are flocking to different social media platforms such as Instagram, YouTube, Facebook, and TikTok in the hope of connecting with their target audience.

A popular approach taken by these brands is engaging social media influencers. A social media influencer has established credibility in a specific industry and has access to a vast audience they can persuade to act based on recommendations.

Anyone can become a social influencer so long as they have the right strategy. Choose a popular niche based on your interests and start creating relevant content.

How much you can make: $2,500 — $166,666/month

How much does it cost to start: $601 (?)

How long does it take to build: 155 days (?)

How one mother built a profitable frugal motherhood, life, and travel blog from scratch, using Instagram, Pinterest, and paid sponsorships to grow from 0 to 18.5K followers and generate $1,500-$3,000 per month in less than two years.

10. Start an online fitness business

Thinking of starting an online fitness business?

Online fitness is growing rapidly in popularity because it’s convenient, affordable, and accessible to everyone. The best part is that you can stay in your home to start.

Starting an online fitness business can be a great way to make money and help people. When you start an online fitness business, you don’t have to worry about overhead costs like rent or maintaining a physical location - all you need is a computer and an internet connection to get started.

How much you can make: $2,000 — $500,000/month

This case study is about a former personal trainer who launched his online personal training platform, TeamFFLEX, starting with no money and a lot of drive, and grew it into a 6-figure business in less than a year, now doing $48,000 a month with potential for continued growth.

11. Start an event planning business

Event planners handle different tasks related to making the business a success. Some of the event planner’s responsibilities include:

• Conducting research
• Creating the event design
• Finding an ideal site
• Arranging for food, décor, and entertainment
• Planning logistics to and from the event
• Sending invitations
• Supervising at the site etc

To start this business on a budget, begin by honing your organizational and communication skills.

Next, create a detailed business plan outlining your services, target market, and pricing structure.

Utilize free or low-cost online tools for marketing, and consider starting small by offering services for smaller events before expanding your business as you gain experience and resources.

How much you can make: $35,000 — $500,000/month

How much does it cost to start: $1,000 (?)

How long does it take to build: 90 days (?)

Akshay Patel's event rental and decor business, Simply Decor, Tents, and Events, saw an average ticket price of $2,000, as their advertising budget decreased from $20k to $5k, leading to 40% of their clients coming through social media advertising, 30% from expos, and 30% online in google, yahoo, and other platforms.

12. Start a tutoring business

Starting a tutoring side hustle is a great way for teachers and students to earn extra monthly income.

If you are considering becoming a tutor, find an ideal tutoring niche, and craft a tutoring website.

Then, find your tutoring clients and market your side hustle online. You can choose to offer online tutoring as a part-time or full-time engagement.

How much you can make: $1,000 — $120,000/month

How much does it cost to start: $100 (?)

How long does it take to build: 15 days (?)

Time commitment per week: Min. 5 hours/week

A 22-year-old entrepreneur started an online SAT/ACT tutoring company from his bedroom which has seen a linear increase in student sign-ups each month, currently bringing in an average revenue of $15,000 a month and plans to triple in 2020.

13. Start an online language coaching business

The world has become more globalized. Businesses have become cross-border, and executives have to travel to meet new customers. One thing that is obvious is that there is a need for language translation services.

If you have proficiency in one or more foreign languages then you can consider working as a language coach.

Teaching a language online is intensive as you have to meet and communicate with the audience often, and check their progress. If you are looking for an opportunity to earn working online, consider starting online language lessons.

How much you can make: $240 — $75,000/month

How much does it cost to start: $500 (?)

How long does it take to build: 212 days (?)

Marlena Jorn started Marlena Jorn Tutors in teaching German to a group of people privately; she learned through experience what worked best to design her class structure and advertising/marketing materials, and from word of mouth has gained a very successful response so far.

14. Start a junk removal business

Households and businesses need help hauling away broken furniture, clearing out trash, and even emptying properties during a foreclosure. Therefore, the demand for junk removal services is high. Starting a junk removal business can be profitable if you own a box truck and are looking for self-employment opportunities.

To begin, perform market research in your area, and apply for the necessary regulatory permits or licenses. Build a website and market your services.

How much you can make: $4,000 — $230,000/month

How long does it take to build: 20 days (?)

23-year-old Sam Evans founded You Call We Haul Junk Removal which brings in around $20,000 in revenue per month with a profit of 65% per job, servicing any individuals who have unneeded junk, and aims to franchise the business in the long-term.

15. Build a home security system

Home security systems are an effective way to deter criminal activities and safeguard valuable possessions.

Homeowners opt for high-quality security systems to monitor their homes remotely, while also enjoying the added benefit of lower insurance premiums, up to 20%.

Starting a home security systems business can be a profitable venture, especially as more homeowners prioritize safeguarding their investments.

To start, you can partner with a home security systems manufacturer as a distributor or technical expert. Alternatively, you can create your own line of security systems from scratch.

To become a successful business owner in the home security industry, it’s important to have a basic understanding of technology and electrical systems.

This knowledge will enable you to install the systems correctly and earn recommendations from satisfied customers.

How much you can make: $70,000/month

Konnected founder Nate Clark shares how he developed an open-source solution to his own home security struggles, growing the business to generate an estimated $1 million in sales annually.

16. Become a cybersecurity blogger

Every day, businesses and private systems are targeted by cyber attacks.

Highlights of the Check Point Cyber Security Report show that cyberattacks against corporate networks increased by 50% in the past year.

Therefore, IT professionals and all computer users are interested in understanding the changing cybersecurity landscape.

If you're interested in earning a good income by teaching cybersecurity, starting a cybersecurity blog is a great idea.

However, the cybersecurity niche is vast, dynamic, and can be overcrowded.

To ensure success, you'll need to identify your target audience and understand their pain points.

Research your competition to find out what type of content they are covering, and focus on creating even better content to engage and educate your readers.

How much you can make: $25,000/month

How long does it take to build: 30 days (?)

All Things Secured is a personal security and privacy brand with over 100,000 YouTube subscribers, 160 written guides, and 110 videos that have reached 11 million people worldwide; the founder's goal is to make online security and privacy attainable to anyone regardless of their age or technical proficiency.

17. Start a digital agency

A digital agency’s task is to make a business reach its advertising, marketing, or technology-related goals. Anyone with enough knowledge and passion for digital marketing can start and run a profitable digital marketing agency. With the proper skill set, the right tools, and the right mindset, you can start a successful digital agency.

The global digital agency market reached a value of nearly $305B in 2020 . The future growth prospects of the digital agency market are projected to be high due to the rising population of people consuming and creating content through digital channels.

How much you can make: $6,500 — $3,699,632/month

Power Move Marketing is an innovative digital marketing company founded by Hailey Brooke McFadden, which has achieved an impressive monthly income of $22,075 and is projected to make almost $300,000 in its first year, by offering a one-stop-shop for e-commerce businesses looking for a marketing powerhouse with a female positive culture.

18. Start a phone case business

With the number of mobile phone users increasing, there are opportunities for accessory makers such as phone case manufacturers to make a profit. Building a business around making and selling phone cases is relatively easier to produce. You can print labels on-demand, starting with a lower risk, or buy them in bulk and sell them online.

The global mobile phone protective cover market is expected to reach 75.62 billion in the next few years.

Phone protective covers often make a statement and reflect a person’s social and cultural preferences. Phone case manufacturers take advantage of such considerations and keep their products relevant and up-to-date to attract a more extensive customer base.

Remember, as with any industry with a low entry barrier, there will be competition. Therefore, you must study customers’ tastes and preferences and offer customized phone cases.

How much you can make: $120,000 — $125,000/month

Felony Case, a Toronto-based company designing unique iPhone cases, started as a small shop on Etsy and has grown to become an internationally recognized fashion iPhone case brand sold in top tier retailers like Nordstrom, Holt Renfrew, Indigo, Urban Outfitters, Revolve, Free People, and made over half a million dollars in revenue last year.

19. Start a supplements company

A supplement business makes money by selling dietary supplements, vitamins, protein powders, and health foods to customers.

These products are often sold directly to customers or through distributors and retailers.

Your target customers will likely include fitness enthusiasts, health-conscious individuals, wellness influencers, and those who prioritize their nutrition daily.

Starting a supplement brand is becoming increasingly popular because it's relatively inexpensive, and you can run the business from your home.

How much you can make: $1,000 — $3,500,000/month

How long does it take to build: 220 days (?)

A military officer turned entrepreneur built sports nutrition brand Bare Performance Nutrition from $15,000 in year one to on track to generate $6m in revenue this year, leveraging social media platforms and creating interactive, relatable and valuable content to create a community and a brand voice.

20. Start a marketing agency

Marketing agencies can be a great option for businesses looking to advertise in different ways. For businesses, hiring a marketing company can help them achieve success as they don't have to spend money on employees or needed equipment. Marketing agencies are not inexpensive and there are many different variables that come into play when deciding which one is the best fit for your business.

You want to start a marketing agency, but don't know where to begin. You're not alone, there are thousands of entrepreneurs across the globe that have the same ambition. Luckily for you, compiled a list of how other agencies were able to grow their agency and scale effectively.

How much you can make: $1,300 — $8,500,000/month

How long does it take to build: 43 days (?)

A successful podcast production company that grew from one client making $15/hour to a team of 10 contractors producing over 30 shows per week with revenue of over $10k/mo, primarily through referrals and with a focus on providing high personal touch and being picky about working only with clients who are a good fit.

21. Start a life coaching business

Life coach helps people in various areas of their lives using a combination of emotional intelligence, professional knowledge, and experience.

Life coaching is a popular industry worth over $2.85 billion, and the number of life coaches has increased by 33% between 2015-2019 .

This is a very profitable business and can be started at virtually no cost. You’ll need a computer, a high-speed Internet connection, and a LinkedIn account to start. Then, you can begin coaching part-time in your spare time until you build up your clientele.

How much you can make: $100 — $120,000/month

How much does it cost to start: $750 (?)

GrowthMentor, a platform connecting vetted growth mentors for one-on-one calls, founded by Fotis Panagiotakopoulos, has had over 2,500 mentorship calls booked to date and has seen success in using word of mouth, content marketing, and leveraging other people's networks as the primary drivers of customer acquisition.

22. Start a furniture business

The furniture industry involves designing, manufacturing, and selling various types of furniture for household and commercial purposes. With the increase in flexible workspaces and the real estate industry’s growth, the furniture business’s demand is boosted.

The furniture business is easy to start and does not require high investments. However, it is first essential to know your niche, for example, office, domestic, home furniture, and luxury items.

The furniture business needs a lot of preparation and prior knowledge. Taking business classes, learning about your local market, and making a solid business plan is advisable. In general, if your products are unique and one of a kind, consumers will be willing to pay a higher, including the shipping cost.

How much you can make: $6,500 — $999,999/month

How long does it take to build: 120 days (?)

Sasha Weekes, owner of Timber Grove Studios, turned her fine arts and cabinetmaking education into a successful home-based woodworking business that grew from a side project to netting 20-50% profits month-to-month and up to $10,000 in sales during peak periods through Etsy, with her company's growth continuing to increase through other social media outlets.

23. Start a meal prep business

A meal preparation business is a service that delivers prepared meals to its clients in the comfort of their own homes. The meal preparation business is a fast-emerging niche that offers a real opportunity to earn good money. To succeed, the starter must be efficient in the meal preparation and ensure proper communication skills. Besides, the entrepreneur must keep time when it comes to delivery to avoid customer disappointment.

A global survey shows that demand for food delivery service is on the rise. This is as people get busier with their careers and other more important tasks, leaving limited time to prepare meals and bond with friends.

Therefore, starting a meal preparation business can be a great way to earn extra monies.

How much you can make: $50,000 — $600,000/month

How long does it take to build: 7 days (?)

Healthy Chew is a profitable weekly meal preparation service that grew from 200 to 10,000 weekly bowls in just over 3 years, with an overall sales figure of $1.8 million, achieved through effective branding and personalised customer service.

24. Start a skin care product line

The skincare business is a multi-billion dollar one, and it shows no sign of slowing down. New anti-aging products are entering the market at a nearly exponential rate, and the competition for consumers' money is growing more and more.

The industry was valued at 130 billion USD in 2021 and will expand at an annual growth rate of 4.6% up to 2030. This is surely a type of business that you should not miss. You'll need to build your creativity on your products and make sure that it is all safe and useful in improving the skin of your customers.

How much you can make: $300 — $1,000,000/month

How long does it take to build: 165 days (?)

Two moms start a side hustle selling all-natural body products, doubling sales since their launch in 2017 with over 75 craft shows, promoting a non-profit source for their shea butter and self-promotion through podcasts, lining up retail interest from exposure.

25. Start a freelance writing business

Freelance writing can be a good career choice if you are looking for a flexible online job.

Working as a freelancer gives you the flexibility to define your work schedule. You can work from home at any time. Freelance writers work across various niches, writing about various topics assigned by the client,

To earn good money as a freelance writer, you need the following personal qualities:

• Strong writing skills
• Ability to meet deadlines
• Stay on the cutting edge
• Be a self-starter
• Be up-to-date with the current writing tools & writing trends
• Proper communication skills

How much you can make: $700 — $320,000/month

How much does it cost to start: $300 (?)

How David Tile turned a freelance writing gig into an $80k/month business, discussing lessons learned through managing growing demands and maintaining a remote team operation.

26. Start a graphic design business

Graphic designers create logos, brochures, ads, and other marketing materials for companies and organizations. They also design websites and other digital content, including social media graphics.

Graphic designers may specialize in one type of design (such as print or web design), or they can be generalists who do everything from logo design to social media graphics.

Starting a graphic design business can be one of the most rewarding things you’ll ever do. It’s not easy, but if you’re passionate about design and want to make a living, starting your own graphic design business is a great way to go.

Consider a suitable pricing structure when starting a graphic design business. You may charge the customers per hour or fixed pricing based on the project’s nature.

How much you can make: $2,500 — $1,000,000/month

How long does it take to build: 87 days (?)

Learn how two friends bootstrapped a SaaS business to $55k monthly recurring revenue (MRR) by creating a simple graphic design tool for non-designers and focusing on content marketing for customer acquisition.

27. Become a freelance app developer

A freelance app developer is a programmer who creates mobile apps for Android and iOS devices. Freelance app development business targets creating various apps that give a user-friendly experience.

To become a freelance app developer, first, touch up on your skills. There are several courses available online. Once you obtain the certification, choose your niche and focus on your skill set.

Then the best way to showcase your work is to build a portfolio website where you will display your skills, projects, and testimonials. Another way to promote yourself is to create your brand and blog. This will, in turn, build a network, and you will be able to connect with people and attract more clients.

How much you can make: $10,000 — $91,000/month

How much does it cost to start: $350 (?)

A software agency started by a non-technical founder helps diverse clients with their minimum lovable product, boasting a revenue of over $700,000 this year with a 20% profit margin and a team of 8.

28. Start a natural beauty product business

Natural beauty products include aloe vera, honey, or cocoa butter. They contain no chemical or synthetic elements.

The global natural skin care products market size was valued at $6.7 billion in 2021 .

Thinking about launching a beauty product line? What’s holding you back? Check out our case studies below to see how others have done it!

How much you can make: $300 — $80,000/month

How long does it take to build: 227 days (?)

A mother-of-two started a $5k/month skincare business after experimenting with beeswax and honey to create luxurious all-natural products, growing her business to attain over $7,500 in sales per month via multiple sales streams, including $4,000 per month at markets.

29. Start a bridal accessories store

Bridal accessories are a great way to help you complete your wedding day look. Bridal accessories are something similar that surrounds weddings in our society. Bridal accessories are all the rage nowadays. These pretty things create the perfect set of accessories for the bridal.

The Bridal Wear market in the USA is estimated at $26B in 2020 .

A bridal accessories store can provide you with high income and the ability to hire. Bridal occasions are exceptional and endure several phases. You could start a bridal accessories business with access to millions of customers from the first introduction until they get married.

How much you can make: $50,000/month

East Meets Dress, an e-commerce store that offers Chinese wedding dresses and traditional outfits, grew to a six-figure annual recurring revenue ($25k/month) in just one year by targeting Asian-American brides in the U.S and high school students looking to wear cheongsams to prom to celebrate their heritage.

30. Start a home decor business

Are you a talented interior designer? Do you know you can turn your hobby into a side income opportunity? Home décor as a side hustle is a great opportunity to build a brand as you earn extra income. You first need to work on your portfolio to launch a successful home décor side hustle.

The portfolio communicates to your potential customers your potential when it comes to home décor. You may use your home as an example or request a friend for an opportunity to do their home décor as a sample for your portfolio. Once you have a portfolio, market your business, and remember to include photos from your previous gigs to increase the chances of closing a sale.

How much you can make: $2,000 — $415,000/month

How long does it take to build: 48 days (?)

Less is More Organizing Services, founded by Sarah Giller Nelson, is a home organizing service that operates in two states, serving an average of 95 households per year with an 85% repeat customer rate, offering services by the hour with a 4-hour minimum, and using a guided decluttering process to help customers achieve their goals.

31. Start a dating coaching business

A dating coach offers training and guidance to improve the client's success in dating and relationships.

The dating coach evaluates the results of the client's actions and decides what changes to make to the client's dating approach to improve the outcome. Besides, dating coaches offer guidance and support, helping clients negotiate the often confusing first stages of their early romantic experiences.

Dating coaches have been around for years. A more recent trend is dating coaches who help people with conditions like autism overcome their situations and begin dating people they love. Do you love helping people achieve their dating goals? You can start a dating coach service today!

To start, identify a niche and create a website, to help you reach more people. You can target teenagers, divorced people, or older adults and help them through their dating life.

How much you can make: $1,500 — $30,000/month

How much does it cost to start: $20 (?)

How long does it take to build: 45 days (?)

Time commitment per week: Min. 3 hours/week

Meet Ta'Veca Collins, founder of Romance On The Go, a concierge service that promotes romance and intimacy; since becoming a preferred vendor for The W Hotel Fort Lauderdale, their gross income has increased to around $3,200.00 monthly, and they are currently expanding their team to meet the demands of new partnered hotels.

32. Start a 3D Printing Business

3D printing is a process that assembles objects layer by layer and starting a business in this industry can be a very creative venture.

You will need investment in the right equipment and materials, and the acquisition of 3D modeling and design skills. You will also need to regularly calibrate and maintain your 3D printers to deliver consistent results.

Plan how you'll handle shipping and logistics, and leverage technology to find new applications of 3D printing in all industries.

How much you can make: $42,000 — $330,000/month

How long does it take to build: 360 days (?)

Founder Roy Kirchner shares how he started an eCommerce business specializing in 3D printing with an initial investment of $65,000, which now averages monthly gross sales of $330,000 and has partnered with international manufacturers and local businesses while offering technical support and education.

33. Start a travel-planning app business

In the past, arranging trips on your own was a challenge only a few people could take on. Travel agents were on the rise at the time and handled everything from hotel reservations to ticket booking and traveler's itineraries.

Today, travel agents are at the risk of becoming obsolete as more travelers embrace the online travel trend. According to research, the online travel booking service will experience a compound annual growth rate of 9.0% in the coming years.

Therefore, starting an online travel-planning app business can be a profitable venture. Some potential opportunities include:

• Travel itinerary planning apps
• Travel booking apps
• Location-tracking apps
• Language translation apps

The travel-planning apps should provide users with instant availability of information, a one-stop platform, & simplify transactions,

How much you can make: $22,000 — $233,333/month

How much does it cost to start: $5,000 (?)

Visa List is a successful micro start-up that provides one-stop visa information for travellers, earning $5000/month on average with 350K monthly active users and has helped over 2 million users with their visa requirements, all starting from a personal frustration with visa processes.

34. Become a solar consultant

Solar consultants help explain renewable energy systems and resources available to potential customers.

Solar consultants often travel to different sites to evaluate power needs and provide cost estimates to homeowners and businesses willing to install solar energy systems.

To become a solar consultant, you need basic education and experience with solar systems. Since the solar industry is evolving very fast, you must be able to study new systems and understand the latest developments in this industry.

How much you can make: $2,000,000/month

Solar Energy Partners, a solar-focused company founded by Alex K Williams, has achieved more than 400% growth since inception, and is expanding into new markets while offering best customer service and training programs.

35. Dog Transportation Business

Dog transportation businesses are yet another thriving and profitable business that an entrepreneur who is looking towards starting a pet-related business should consider starting.

These types of businesses transport dogs from one place to another, usually within a country or from one country to another. If you're interested in this kind of business, then you should consider getting into the pet transportation business.

According to internal statistics, the average dog transporter clears between $8,000 and $10,000 per month .

36. Start a metal scraping business

Metal scrapping refers to the recovery and processing of recyclable metal materials. Metal scrappers collect end-of-life products and structures and refine or sell them to metal product manufacturing and fabrication companies, where the scraps are reintroduced as raw materials.

To start a metal scrapping business, find out the possible sources of scrap metal and ensure you understand the legal and tax issues concerning operating the business. Spot a location where you will get a deal for your scrap metal business, and start collecting the scrap metals.

37. Become a drywall installer

Drywall installers work in specialty construction. They measure, cut, and fasten the drywall panels on the interior walls of residential and commercial properties. To become a drywall installer, you must complete a three-to-four-year apprenticeship program and possess a certificate. Their professional skills include moving heavy loads and performing physical tasks.

You can work under a certified and registered contractor, or start your own drywall installation business, so long as you have enough years of experience working as a junior drywall installer.

How much you can make: $40,000/month

How much does it cost to start: $7,000 (?)

How long does it take to build: 365 days (?)

A second-generation family-owned plumbing and leak detection business shares their success in obtaining repeat business through word of mouth referrals, staying true to their core principles, and using cutting-edge technology to provide top-notch service to clients.

38. Create an order fulfillment software

The order fulfillment software integrates with the sales channels, making shipping and fulfillment stress-free, so businesses focus on scalable growth. To build your order fulfillment software, research what’s available in the market today, identify gaps, engage target customers on features they need most, and create unique software.

How much you can make: $25,000,000/month

ShipMonk, a technology-driven fulfillment center, went from $130K in revenue in 2014 to nearly $30M in 2018 and was named America's Fastest Growing Fulfillment Center, with projected revenue of $60M for 2019.

39. Start an interior landscaping business

Interior landscaping is the practice of designing, installing, and maintaining greenery and biophilic elements inside buildings.

Commercial and residential property owners are embracing interior landscaping at a higher rate than ever before. Interior landscaping offers an opportunity to replicate the beauty and environmental benefits previously associated with the outdoors.

If you enjoy home improvement and interior décor, consider starting an interior landscaping business.

40. Start a healthy food processing business

With the growing preference for healthy and functional food, starting a healthy food processing plant can be rewarding.

The advancements in the food processing industry, innovation in processing technology, and continuous growth in demand for processed food are some excellent reasons to consider opening a healthy food processing business.

To start a healthy food processing plant, find out a market gap, and research the demand. Understand customers changing tastes and focus on offering the best throughout.

How much you can make: $52,944/month

Bluebird Provisions Bone Broth is North America's fastest-growing bone broth brand, doing 49,000 per month and growing 50% YoY, with 5000% growth in customer base since starting, thanks to an SEO-focused strategy, email marketing, referrals, and Amazon.

41. Start a waste recycling business

If you have a passion for saving the planet and going green, starting a waste recycling business may be the right route for you to take. Waste recycling is the process of collecting and processing materials that would otherwise be trashed and processing them into new products.

Starting a waste recycling business is not only profitable, but it can also benefit the community and the environment. To start a waste recycling business, research the industry and determine the costs involved. Then, register the business and equip your waste recycling facility.

How much you can make: $230,000/month

This case study showcases the story of a locally owned and operated residential waste removal business based in Colorado Springs started with a pick-up truck and a $35k loan, which now has 51 dumpsters, two roll-off dumpster delivery trucks, two residential garbage trucks, and is projecting $700-800k in sales for 2020.

42. Start a typing speed testing business

Typing speed is an excellent skill that can increase marketability and job opportunities. Some of the jobs requiring a high typing speed include:

• Data entry clerks
• Copy editing
• Medical transcriptionist
• Court reporter
• Administrative assistants
• Freelance writing

Employers within these industries use a typing speed program to evaluate the potential candidates, so they can reach a hiring decision. Therefore, if you have program development skills, you may consider creating a typing speed-testing tool.

Your target customers could be people preparing for typing jobs and employers who want to ascertain whether potential candidates have the required typing skills.

43. Start a shipping business

The shipping business is an exciting and dynamic way to earn a living, and it’s a perfect opportunity for those looking for a change of pace from the typical 9-5 office job. This business entails transporting goods and cargo from one place to another. It can involve everything from small packages and envelopes to large freight containers and pallets.

To run a successful shipping business, you should keep a few key things in mind. Firstly, it’s essential to establish a good working relationship with your clients. You need to be reliable, punctual and have excellent communication skills. This will ensure that your clients come back to you time and time again.

Another tip for shipping business success is investing in high-quality equipment and vehicles. This could include a variety of trucks, trailers, and cargo containers. The right equipment is essential to ensure that your cargo arrives safely and on time.

Lastly, it’s essential to be well-versed in the ins and outs of the industry. This could include understanding the different regulations and laws that apply to shipping and staying up-to-date with new developments in the field. Being informed and knowledgeable about the industry will give you an edge over competitors.

Overall, the shipping business is an excellent opportunity for those who want to be their boss and take control of their career. With hard work, dedication, and a little know-how, you can make your shipping business a booming success.

How much you can make: $65,000 — $2,400,000/month

How a logistics company grew its revenue over 300% in 2 years, starting with just 2 vans and 25k+ square feet of warehouse space, and focused on relationships, efficiency, and building trust with its customers.

44. Become a freelance web developer

Are you passionate about technology and looking for a way to earn extra income while working on your terms? How about becoming a freelance web developer? Firstly, web development is a highly sought-after skill in every industry. Secondly, the pay rate is higher than freelance writers, and freelance graphic designers earn. As a freelance web developer, you put yourself in a high-value proposition. However, it would be best to learn languages like HTML, CSS, and Javascript to get started. Find a niche and start building anything and everything. Create a personal brand and build up your portfolio.

How much you can make: $6,000 — $148,000/month

How much does it cost to start: $2,500 (?)

Cantilever Web Design and Development, with clients including IBM and small businesses, reached a revenue of over $750k last year with a gross margin of 50% by prioritizing Digital Hospitality, fostering high-quality relationships, and constantly improving their process and philosophy.

45. Start a recruiting business

A recruiting business is a service and advice-based business that helps companies and organizations find the right candidates for their jobs. These businesses usually serve as a medium between the two entities to create a win-win situation. The job seeker can get the job of their dreams, while the business entity can get a fit candidate for the job.

Recruiting is one of the fastest-growing industries in the United States. Over the past ten years, businesses are struggling to find quality employees and candidates are searching for more opportunities. If you know this, then you have everything you need to make money fast with recruiting.

Starting a recruiting business from scratch is easier than you think. You can have your own staffing agency in just a few weeks and start making a great income while working less.

How much you can make: $100 — $35,000/month

How long does it take to build: 105 days (?)

Techintern.io connects startups and tech companies with the best software developer students at colleges across North America and has achieved #1 Product of the Day and #2 Product of the Week on Product Hunt, making $15,000 per month.

46. Chief Information Security Officer (CISO)

According to a PWC report, more than 80% of companies now have a chief information security officer (CISO) on the management staff. This trend indicates that organizations are becoming aware of cyber threats, and they are taking steps to prevent attacks. CISOs are senior-level executives who ensure that an organization's cyber security plan is aligned with its vision, operations, and technology. They work closely with staff members to identify risks and devise ways to mitigate them without causing disruptions. They also manage security policies within the organization.

The average salary for a Chief Information Security Officer in the United States is $234,025 .

47. Start a business plan writing business

A business plan writing business is a service that helps entrepreneurs and small business owners create well-structured and comprehensive business plans.

These plans serve as roadmaps for their businesses, outlining goals, strategies, and financial projections. Starting a business plan writing business involves skills in research, analysis, and writing.

You’ll work closely with clients to understand their vision and then translate it into a professional document that can be used to attract investors, secure loans, or guide their business growth.

This low-cost business idea requires minimal initial investment, mainly for marketing materials and a basic online presence, making it an accessible option for aspiring entrepreneurs.

How much you can make: $62,500/month

How much does it cost to start: $35 (?)

How long does it take to build: 150 days (?)

Content-Whale, a content curation agency, has achieved a Rs. 4 crore ($514k/year) turnover 4-5 years after being started with just Rs. 2500 ($35), and has a pool of more than 500 writers, aiming to become a market leader in the global content market.

48. Start a dating app

A mobile dating app is one of the most popular mobile-only businesses for creating an ecosystem and generating revenue. But, with the help of a robust development team, you can surpass all your competitors and create a sleeker end product than anyone else in this market.

Dating apps have made their way into an industry that was gaining enough traction. The online Dating Market size was valued at $7.35B in 2020 and is projected to reach $10.87B by 2028.

How much you can make: $11,250,000/month

How long does it take to build: 579 days (?)

49. Start an internet infrastructure business

Internet infrastructure is a collective term referring to all hardware and software systems that constitute essential components in internet operation. Common internet infrastructure includes routers, switches, hubs, bridges, gateways, load balancers, and servers.

The internet has become a critical component of every business we transact today. Its adoption is expected to continue multiplying. The new connections will require additional internet infrastructure, a trend that will create business opportunities.

Telecommunications companies have provided the infrastructure to allow data flow around the planet. Private entrepreneurs are also chipping in to help meet the demand for internet connectivity and deliver an excellent user experience.

Experts predict the network infrastructure segment will reach $191.8 billion . The largest subsegment will be the Service Provider Network Infrastructure. Therefore, starting an internet infrastructure company could be your next great business opportunity.

How much you can make: $150,000/month

How long does it take to build: 500 days (?)

KelTech IoT founder Mark Kellett shares insights on building a next-generation energy and infrastructure company bridging the energy and telecoms gap by creating more efficient and sustainable solutions as network demands increase in the age of IoT, with projected revenues expected to be greater than $100M after 5 years.

50. Start a Long Haul Trucking Business

Long haul trucking is one of the sectors contributing significantly to economic growth. Besides, with the modern marketplaces, consumers depend on long-haul truckers to bridge the gap between them and favorite suppliers across the globe.

Thus, if you have a passion for starting a business that focuses on trucking, a long-haul trucking business would fulfill your dream.

Before investing in a long-haul truck, study the market and identify the business opportunities that will be most pleasing to you. Then, buy or lease a suitable long-haul truck and focus on doing what it takes to keep your business profitable while satisfying your customers.

51. Start a travel company

Travel companies sell transportation, lodging, plan trips, and admission to entertainment activities to individuals and groups.

If you love traveling, you can start a company that organizes trips for different people. Choose a niche and ensure travel packages that suit them best.

How much you can make: $10,000 — $1,500,000/month

Under30Experiences is a travel company for people aged 21-35 that runs small group trips around the world, with over 800 five-star reviews on Facebook, Google, and Yelp combined, and nearly hitting $5M in revenue before the COVID-19 pandemic.

52. Start a recycling farm waste business

Farm waste is produced as a result of various agricultural operations. The farm waste can include manure, harvest waste, fertilizer from fields, pesticides, etc.

Recycled farm waste can be turned into energy, fertilizer, molecules, and other materials that benefit economic and environmental sustainability.

53. Start a drug testing business

Drug testing examines illegal or prescription drugs in urine, saliva, hair, or sweat. The purpose of drug tests is to look for drug abuse or misuse.

The drug testing profession is highly in demand at ports of entry and exit and the sporting sector. A drug testing business can be a lucrative business opportunity. You will need a fully equipped laboratory and an elaborate business marketing plan to reach the relevant customers.

54. Start a personal styling business

A personal stylist advises individuals on aesthetic choices such as new fashion trends, clothing styles, colors, and make-up. To become a personal stylist, you must have a detailed style portfolio, a qualification in fashion, make-up, or a related discipline. Prior experience in the fashion industry will be an added advantage.

How much you can make: $150 — $5,934/month

How much does it cost to start: $1,200 (?)

How long does it take to build: 21 days (?)

On Brand founder Brian McEuen curates personalized selections of clothing for men online, sending emails to individual users without duplicate products, with 75 current users and an annualized revenue run rate of $1800.

55. Start a tourist guide business

There's no denying the profitability of a tourism business. If you know the state and cities well, starting a tour guide business can be a very lucrative idea. All you need is a license, and you can soon start working as a tour guide.

Listed are the steps on how to start a tour guide business.

• Register your tour guide name business
• Obtain necessary licenses
• Open a bank account for business transactions
• Organize your business operations
• Start to promote and get clients

How much you can make: $200 — $54,000/month

How much does it cost to start: $1,500 (?)

No Code Map App is a no code builder that allows businesses to create custom interactive maps with dynamic filters automatically based on their dataset, generating >$400 in the first full month of monetization.

56. Start a mobile phone repair kiosk

A cellphone repair kiosk is a low-startup cost business; hence easy to start. However, the profit margins may be low as you start the business, but they increase over time as you become well-known and successful.

To start a mobile phone repair kiosk, find streets with high foot traffic, and open a store. Advertise your business widely to get more foot traffic to your shop.

57. Start a roof repair business

Roof repair and replacement services remain in demand among homeowners and commercial property owners. The need for roof repair services is often because of storms and old roofs that become leaky, requiring immediate replacement.

If you want a home improvement business opportunity, consider starting a roof repair business. To start the roof repair business, you need to be a registered professional roofer, equipped with the right roofing tools, and have the skills to re-design and re-roof properties.

Register your business and acquire the necessary licenses to start marketing the roof repair services.

58. Start an aviation maintenance and repair business

Mid-sized airlines are outsourcing repairs and routine maintenance services to specialty shops, a trend set to increase rapidly. Thus, starting an airline repair and maintenance service can be rewarding if you are an aviation engineer or are interested in the business. Services of an airline repair company include inspection, general maintenance, and repair to ensure the aircraft is operational and safe.

To start an airplane repair and maintenance business, you may target private or commercial airlines looking to outsource the repair and maintenance service. If you do not have the necessary skills, you may employ skilled and experienced aeronautical engineers, look for customers, and focus on growing your business.

59. Start a drone repair business

The drone industry is expected to grow by a CAGR of 28.58% over the next few years, reaching $47.38 billion. As drone usage is poised to go mainstream in many sectors, starting a drone repair business can be rewarding.

However, the drone repair business is capital intensive, so you will need huge capital to run a successful business. To start a successful drone repair business, research the market and decide the best niche to focus on.

60. Start a drain repair service

Over time, drain pipes at commercial and residences will become clogged and require regular servicing to keep the dirty water flowing. When it comes to the efficiency of drainpipes, residential and commercial property owners want to hire a reliable plumber.

To become a drain pipe specialist, you need at least a high school diploma or GED. To gain a higher skill level, you may take a degree course before joining a company for an internship to gain the necessary plumbing experience.

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How to Start an Online Business in 2023

Starting an online business isn't easy. There are so many important decisions to make.  What should you sell ? Who should you sell to? How will you get customers?

If that's not enough, every other week there seems to be a new business trend online. There's chatbots, cryptocurrencies, Facebook ads, Instagram influencers, and many more. What should you pay attention to? What actually matters?

If you want to know how to start an online business in 2023, we've got you covered. In this quick and simple article, we'll take you through how to start a small business online, step-by-step. Consider this as a starting an online business for dummies guide, as we cover everything in plain English and list simple, actionable instructions to help you start. 

How to Start a Business Online (From Scratch)

#1: don't start building yet.

When looking to start a business , it can be tempting to jump into action.

So, if you're feeling the urge to build a website, choose a business name, or create a logo , hold off for now.

If you want to start a successful online business, first, you need a strategy. And steps two, three and four of this article will show you how to create your online business strategy.

#2: Choose a Business Model

When learning how to build an online business from scratch, it helps to know about some tried-and-tested online business models.

Here are six types of online businesses to consider:

• Affiliate Marketing : Promote other business's products and services online, and receive a commission for each sale you make with this passive income idea .
• Freelancing : Provide a service to other individuals and businesses using a skill that you have, such as advertising, writing, designing, or programming.
• Coaching and Consulting : Become a coach or a consultant and sell your expertise, advice, and guidance.
• Information Products : Package and sell your expertise in ebooks, worksheets, templates, and online courses .
• Software as a Service (SaaS) : Create a piece of software or application, and charge users a recurring subscription fee.
• Ecommerce : Use a service like Shopify to set up a website and sell physical products online.

Want more online business ideas to help inspire you? Check out our guide, '25 Small Business Ideas to Make Money'.

#3: Identify Your Target Market

Next, you need to get clear on your target market. In other words, who are you going to serve?

This step is absolutely vital.

As the marketer Philip Kotler once said , 'There is only one winning strategy. It is to carefully define the target market and direct a superior offering to that target market.'

Here's the trick: Make sure you are part of your target audience.

Think about it. If you've been camping your entire life, you'll understand the problems, desires, and language of other campers. As a result, it'd be much easier to sell camping products online. 

Plus, your marketing will be more successful because you'll have a better understanding of how to communicate with other campers.

On the other hand, if you've never been camping in your life, you'd probably struggle – a lot – to sell camping products online.

So, when choosing a target audience, ask yourself:

• What are my hobbies and interests?
• Is there anything that I know a lot about?
• What do I spend most of my time thinking, talking, and reading about?

#4: Find a Problem to Solve

When learning how to start an online business, it's important to note one key thing: all businesses solve a problem.

Plumbers fix leaking pipes. Hollywood movies fulfill people's boredom, curiosity, interest, and the need to escape and relax. Clothing brands help people express themselves and feel attractive.

Here's the golden rule: The bigger the problem you can solve – and the better you solve it – the more money people are willing to pay.

For example, take healthcare services. They solve a big problem, which is why almost everyone is willing to spend a lot of money on it. 

On the other hand, not many people will pay you to stop their table from wobbling. It's not a big problem, and they don't need help solving it.

Bottom line: If you want to identify how to start an online business, you need to find a good problem to solve.

Here are three examples:

• Target market : Fashion-conscious teenage boys
• Problem : The fashion-conscious want to stand out from the crowd without spending too much money.
• Solution : Create a clothing line that's flamboyant and budget-friendly.

• Target market : Marketing managers at multinational software companies.
• Problem : Businesses need to drive traffic to their websites.
• Solution : Write articles that rank on the first page of Google to drive traffic.
• Target market : Working Moms with young children.
• Problem : Many moms want to work out regularly, but they don't have much time.
• Solution : Create a time-saving fitness program and schedule.

How can you find a problem to solve?

• Join Facebook groups and online forums and ask people what they need help with.
• Use Google Keyword Planner to find out what people are searching for.
• Find successful online businesses and identify the problem they solve, then look for ways to do it better.

#5: Analyze The Competition

Anyone learning how to open an online business shouldn’t sleep on competitor analysis .

Analyzing your competitors helps you stay on the cutting edge of what’s working in your niche, identify successful tactics and new trends, and anticipate shifts in the market. It also helps define your messaging, positioning, and overall business strategy.

So how do you conduct a competitive analysis? Here are some tips: Subscribe to your competitors’ blog

• Buy a product they sell
• Abandon a product in their shopping cart
• Sign up for their newsletter
• Follow them on social media

While taking these measures, make sure to document your findings with notes on each approach. You want to be able to find relevant insight when you need it.

By analyzing their customer experience and looking at how they engage people via content, you can identify tactics that your competitors are using to drive sales. 

Pro Tip: Consider doing a SWOT analysis to accompany the findings from your research. It’s a blueprint that leans into your competitors’ strengths and weaknesses to define areas of improvement. To learn more about this tactic, check out our guide, “ Everything You Need to Know About SWOT Analysis .”

#6: Cover Your Legal Bases 

Any business you start must be properly aligned with the laws and regulations in your region. So make sure to read up on online business legal requirements when starting a new internet business. 

Just some of the legal aspects you’ll need to consider include:

Business structure

Register as an LLC or sole proprietor for online business? You can research and decide on your own, but it pays to get input from a tax specialist.

Licenses and permits

Depending on what type of business you start, you may need a license to operate it. This varies depending on where you live, so contact your local state department to find out more.

Tax obligations

Most online business owners are required to pay income tax. Additionally, you might have sales tax obligations if you sell products to consumers in certain countries. So before starting your business, consider speaking to an attorney to learn about the applicable taxes and the list of online business documents you’ll need to file them.

Copyright, patent, and trademarks

You’ll want to cover these legal elements to avoid trouble down the road. For example, registering your trademark will prevent others from using your brand name, saving you the hassle and cost of rebranding. 

#7: Select Your Sourcing Strategy 

If you’re interested in starting an online ecommerce business, you’ll need to find reliable and trustworthy sources of inventory.

There are several ways to do this:

• Search for product manufacturers on websites like Alibaba or directories like Kompass , Sourcify , and ThomasNet. 
• Discover dropshipping suppliers on platforms like DSers .

The last option is highly accessible and gives you a chance to start your business without making a huge upfront investment. 

With dropshipping, your product supplier ships and fulfills an order only after a customer has made a purchase; they handle the storage and logistics part of the business while you handle marketing and customer support.

Check out this list of the best dropshipping suppliers to find valuable partners you can count on for order fulfillment. 

#8: Set Up Your Payment Methods

You’re almost there! Now is the time to decide how your business will accept payments and how you as business owner will receive payouts.

There are several online payment options available to you. The most popular ones include accepting credit cards, PayPal, Apple Pay, and Google Pay.

If you’re planning to use Shopify to start an ecommerce business, you can activate the provider’s integrated payment solution called Shopify Payments . It sets you up to accept all major payment methods and comes with 0% extra transaction fees.

For a service-based web business like freelance writing, be sure to check out Transferwise, Payoneer, Stripe, and 2Checkout.

Regardless of the payment method, you should be able to set your payout schedule. You can choose to receive your money daily, weekly or monthly — depending on your preferences when it comes to cash.

#9: Build Your Sales Platform

Once you've identified your business idea and covered your legal bases it's time to build your platform.

Well, if you plan to start an ecommerce business, build a website with Shopify and then find products to sell with DSers.

If you plan to start freelancing, coaching, or consulting, Shopify has the option of plugging in many popular tools like Digital Downloads to sell digital products online , ReCharge to sell subscriptions online, and SendOwl to sell videos online. 

Keep things simple.

At this point, your business is still in the realm of theory. So try not to invest too much money, time, or energy into building a perfect website.

Instead, test your business idea and make sure it works before you invest.

Eric Ries , the author of The Lean Startup, said, 'We must learn what customers really want, not what they say they want or what we think they should want.'

#10: Choose a Marketing Method

When you’re ready to start promoting your online business, you need to choose a marketing method.

There are many different online marketing methods out there. However, when it comes to learning how to start an online business, some are better than others.

Here are four online marketing methods that you can use to land sales relatively quickly:

• Social Media Marketing : Use social media to create and share content, engage with your target audience, and drive traffic to your website to land sales.
• Direct Outreach : Reach out to individuals at companies to pitch your services .
• Paid Advertising : Advertise on platforms like Facebook , Instagram , Google , and YouTube to increase brand awareness and drive sales.
• Influencer marketing : Team up with influencers to promote your products directly to their existing followings.

Summary: How to Start an Online Business?

Wondering how to start an online business in 2023? Here are 10 steps to starting an online business:

• Create a good business strategy before you start building things.
• Choose an online business model that suits your skills, interests, and preferences.
• Identify your target market – and make sure that you are part of it.
• Identify a problem that your target audience has, and find a way to help solve it.
• Study your competitors to identify opportunities for improvements.
• Fulfill the legal requirements, including getting a business license.
• Choose a sourcing strategy that streamline your order fulfillment.
• Set up your payment gateway and payouts to collect and receive payments. 
• Build a basic sales platform to test your business idea.
• Choose a marketing method and start promoting your business.

Finally, it can take a while to learn how to start an online business successfully.  So don’t worry if your first online business doesn’t take off immediately. Many of the most successful entrepreneurs failed multiple times before achieving success.

As the co-founder of Apple, Steve Jobs, once said , “I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.”

Bonus: Additional Resources to Help You Build and Start Your Online Business  

• How to Build Your Own Brand From Scratch in 7 Steps
• 9 Best Shopify Tools for New Entrepreneurs
• How to Get Free Media Coverage for Your Business
• Decoding Product Life Cycle Stages (And Optimizing For Them)
• 15 Ways to Increase Social Media Engagement Quickly
• What You Need to Know About Pricing Before You Launch
• Ecommerce Shipping Solutions: Guide to Ecommerce Delivery
• Product Page Tune-Up: 9 Timeless Ways to Increase Conversions
• 10 Tips on How to Handle Customer Complaints
• 9 Ways to Earn Customer Trust When You Have Zero Sales

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What Does a Data Analyst Do? Your 2024 Career Guide

A data analyst gathers, cleans, and studies data sets to help solve problems. Here's how you can start on a path to become one.

A data analyst collects, cleans, and interprets data sets in order to answer a question or solve a problem. They work in many industries, including business, finance, criminal justice, science, medicine, and government.

What kind of customers should a business target in its next ad campaign? What age group is most vulnerable to a particular disease? What patterns in behavior are connected to financial fraud?

These are the types of questions you might be pressed to answer as a data analyst. Read on to find out more about what a data analyst is, what skills you'll need, and how you can start on a path to becoming one.

Start advancing your data analysis skills today

Explore a career path as a data analyst with the Google Data Analytics Professional Certificate . Learn key analytical skills like data cleaning, analysis, and visualization, as well as tools like spreadsheets, SQL, R programming, and Tableau.

What is data analysis?

Data analysis is the process of gleaning insights from data to inform better business decisions. The process of analyzing data typically moves through five iterative phases:

Identify the data you want to analyze

Collect the data

Clean the data in preparation for analysis

Analyze the data

Interpret the results of the analysis

Data analysis can take different forms, depending on the question you’re trying to answer. You can read more about the types of data analysis here. Briefly, descriptive analysis tells us what happened, diagnostic analysis tells us why it happened, predictive analytics forms projections about the future, and prescriptive analysis creates actionable advice on what actions to take.

Watch the video below for an introduction to data analytics and preview the Google course:

Data analyst tasks and responsibilities

A data analyst is a person whose job is to gather and interpret data in order to solve a specific problem. The role includes plenty of time spent with data but entails communicating findings too. 

Here’s what many data analysts do on a day-to-day basis:

Gather data: Analysts often collect data themselves. This could include conducting surveys, tracking visitor characteristics on a company website, or buying datasets from data collection specialists.

Clean data: Raw data might contain duplicates, errors, or outliers. Cleaning the data means maintaining the quality of data in a spreadsheet or through a programming language so that your interpretations won’t be wrong or skewed. 

Model data: This entails creating and designing the structures of a database. You might choose what types of data to store and collect, establish how data categories are related to each other, and work through how the data actually appears.

Interpret data: Interpreting data will involve finding patterns or trends in data that could answer the question at hand.

Present: Communicating the results of your findings will be a key part of your job. You do this by putting together visualizations like charts and graphs, writing reports, and presenting information to interested parties.

What tools do data analysts use?

During the process of data analysis, analysts often use a wide variety of tools to make their work more accurate and efficient. Some of the most common tools in the data analytics industry include:

Microsoft Excel

Google Sheets

R or Python

Microsoft Power BI

Jupyter Notebooks

Data analyst salary and job outlook

The average base salary for a data analyst in the US is $69,517 in December 2021, according to Glassdoor. This can vary depending on your seniority, where in the US you’re located, and other factors.

Data analysts are in high demand. The World Economic Forum listed it as number two in growing jobs in the US [ 1 ]. The Bureau of Labor Statistics also reports related occupations as having extremely high growth rates.

From 2020 to 2030, operations research analyst positions are expected to grow by 25 percent, market research analysts by 22 percent, and mathematicians and statisticians by 33 percent. That’s a lot higher than the total employment growth rate of 7.7 percent.

Data analyst vs. data scientist: What’s the difference?

Data analysts and data scientists both work with data, but what they do with it differs. Data analysts typically work with existing data to solve defined business problems. Data scientists build new algorithms and models to make predictions about the future. Learn more about the difference between data scientists and data analysts .

Types of data analysts

As advancing technology has rapidly expanded the types and amount of information we can collect, knowing how to gather, sort, and analyze data has become a crucial part of almost any industry. You’ll find data analysts in the criminal justice, fashion, food, technology, business, environment, and public sectors—among many others.

People who perform data analysis might have other titles, such as:

Medical and health care analyst

Market research analyst

Business analyst

Business intelligence analyst

Operations research analyst

Intelligence analyst

Interested in business intelligence? Gain skills in data modeling and data visualization:

How to become a data analyst

There’s more than one path toward a career as a data analyst. Whether you’re just graduating from school or looking to switch careers, the first step is often assessing what transferable skills you have and building the new skills you’ll need in this new role.

Data analyst technical skills

Database tools:  Microsoft Excel and SQL should be mainstays in any data analyst’s toolbox. While Excel is ubiquitous across industries, SQL can handle larger sets of data and is widely regarded as a necessity for data analysis. 

Programming languages: Learning a statistical programming language like Python or R will let you handle large sets of data and perform complex equations. Though Python and R are among the most common, it’s a good idea to look at several job descriptions of a position you’re interested in to determine which language will be most useful to your industry. 

Data visualization: Presenting your findings in a clear and compelling way is crucial to being a successful data analyst. Knowing how best to present information through charts and graphs will make sure colleagues, employers, and stakeholders will understand your work. Tableau, Jupyter Notebook, and Excel are among the many tools used to create visuals.

Statistics and math: Knowing the concepts behind what data tools are actually doing will help you tremendously in your work. Having a solid grasp of statistics and math will help you determine which tools are best to use to solve a particular problem, help you catch errors in your data, and have a better understanding of the results.

If that seems like a lot, don’t worry—there are plenty of courses that will walk you through the basics of the technical skills you need as a data analyst. This IBM Data Analyst Professional Certificate course on Coursera can be a good place to start.

Data analyst workplace skills

Problem solving: A data analyst needs to have a good understanding of the question being asked and the problem that needs to be solved. They also should be able to find patterns or trends that might reveal a story. Having critical thinking skills will allow you to focus on the right types of data, recognize the most revealing methods of analysis, and catch gaps in your work.

Communication: Being able to get your ideas across to other people will be crucial to your work as a data analyst. Strong written and speaking skills to communicate with colleagues and other stakeholders are good assets to have as a data analyst.

Industry knowledge: Knowing about the industry you work in—health care, business, finance, or otherwise—will give you an advantage in your work and in job applications. If you’re trying to break into a specific industry, take some time to pay attention to the news in your industry or read a book on the subject. This can familiarize you with the industry’s main issues and trends.

Learn more: 7 In-Demand Data Analyst Skills to Get Hired

Resources to start your data analyst career

We've curated a collection of resources to help you decide whether becoming a data analyst is right for you—including figuring out what skills you'll need to learn and courses you can take to pursue this career.

Paths to becoming a data analyst

Acquiring these skills is the first step to becoming a data analyst. Here are a few routes you can take to get them that are flexible enough to fit in around your life.

Professional certificate: Entry-level professional certificate programs usually require no previous experience in the field. They can teach you basic skills like SQL or statistics while giving you the chance to create projects for your portfolio and provide real-time feedback on your work. Several professional certificate programs on Coursera do just that.

Bachelor's degree: The Bureau of Labor Statistics recommends a bachelor’s degree for jobs that involve data analysis. If you’re considering getting a degree to become a data analyst, focusing your coursework in statistics, math, or computer science can give you a head start with potential employers. Many online bachelor’s degrees have flexible scheduling so you can fit a degree in around your priorities.

Self-study: If you want a path that doesn’t include formal training, it’s possible to learn the skills necessary for data analysis on your own. Get started with this data analytics reading list for beginners . Once you’re ready to start building a portfolio , here are some ideas for data analytics projects .

For more on how to become a data analyst (with or without a degree), check out our step-by-step guide .

Data analyst career advancement

Being a data analyst can also open doors to other careers. Many who start as data analysts go on to work as data scientists . Like analysts, data scientists use statistics, math, and computer science to analyze data. A scientist, however, might use advanced techniques to build models and other tools to provide insights into future trends.

Start advancing your data analyst skills today

If you’re ready to start exploring a career as a data analyst, build job-ready skills in less than six months with the  Google Data Analytics Professional Certificate  on Coursera. Learn how to clean, organize, analyze, visualize, and present data from data professionals at Google.

If you're ready to build on your existing data science skills to qualify for in-demand job titles like junior data scientist and data science analyst, consider the  Google Advanced Data Analytics Professional Certificate .

Frequently asked questions (FAQ)

Is a data analyst a good job ‎.

Data analysts tend to be in demand and well paid. If you enjoy solving problems, working with numbers, and thinking analytically, a career as a data analyst could be a good fit for you. ‎

What should I study to become a data analyst? ‎

Most entry-level data analyst positions require at least a bachelor’s degree. Fields of study might include data analysis, mathematics, finance, economics, or computer science. Earning a master’s degree in data analysis, data science, or business analytics might open new, higher-paying job opportunities.

Read more: What Degree Do I Need to Become a Data Analyst? ‎

Does data analysis require coding? ‎

You might not be required to code as part of your day-to-day requirements as a data analyst. However, knowing how to write some basic Python or R , as well as how to write queries in SQL (Structured Query Language) can help you clean, analyze, and visualize data. ‎

How do I get a job as a data analyst with no experience? ‎

Sometimes even junior data analyst job listings ask for previous experience. Luckily, it’s possible to gain experience working with data even if you’ve never had a job as an analyst. Degree programs, certification courses, and online classes often include hands-on data projects. If you’re learning on your own, you can find free data sets on the internet that you can work with to start getting experience (and building your portfolio). ‎

How long does it take to become a data analyst? ‎

The amount of time it takes to develop the skills you need to get a job as a data analyst will depend on what you already know, your strategy for learning new skills, and the type of role you’re applying for. But it might not take as long as you think. It’s possible to learn the skills you need for an entry-level role as a data analyst in approximately 64 hours of learning, according to Coursera’s 2021 Global Skills Report . It’s possible to earn your Google Data Analytics or IBM Data Analyst Professional Certificate in less than six months. ‎

Article sources

World Economic Forum. " The Future of Jobs Report 2020 , http://www3.weforum.org/docs/WEF_Future_of_Jobs_2020.pdf." Accessed April 1, 2024.

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Coursera staff.

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Coursera’s editorial team is comprised of highly experienced professional editors, writers, and fact...

This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.

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What Is Solution Selling? A Complete Guide

Solution selling is one of the most effective approaches to selling regardless of business size.

Erin Hueffner

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Salespeople who push a particular product or service before they understand the customer give the whole industry a bad reputation. Our  State of Sales  research shows that 87% of business buyers expect sales reps to act as trusted advisors. That’s why solution selling is such an important technique for you to master. You show your prospects you fully understand the challenges of their business and that you’re here to help solve them.

Let’s look at how this proven sales approach can help you hit — and surpass — sales targets.

What you’ll learn:

What is solution selling, how does solution selling differ from product selling, why is solution selling important, when should you use solution selling, what are the steps of solution selling, pros and cons of solution selling, level up your game with ai conversation insights.

Sell smarter using Einstein Conversation Insights — with customer signals and next-step guidance to help you close.

Solution selling is a sales technique that focuses on your customers’ needs and pain points and provides recommendations to solve them.

In the years since this method was introduced to the world of sales, solution selling has become a customer-centric alternative to the previously standard approach of “box pushing.” Where box pushing focuses on selling product features and specs in, more or less, the same way to all prospects, solution selling brought a whole new level of customization and consultation that focuses on each customer’s specific needs.

Solution selling focuses on the customer and the problems they’re experiencing. Like box pushing, product selling focuses on the product and selling as many of them as possible — regardless of whether or not the customer needs the product. This shift in perspective means that solution selling is a more consultative and relationship-focused process than product selling.

For example, product selling promotes a specific product or service by emphasizing its features and benefits and working through a script that pushes the product. Customers may or may not have a clear problem or need that the product solves; the focus is solely on selling. There’s also very little follow-up or consultation involved in the process.

Solution selling, on the other hand, uses active listening to uncover what a customer’s problems are, then offers recommendations that address those problems. It’s very consultative, and can lead to a long-term relationship and repeat business.

At its heart, solution selling is all about the ROI that your prospect can get out of your recommendations, not pushing features on them in hopes of making a sale. This builds trust-based relationships and meets the prospect’s need to work with someone who puts their best interest at heart.

Rather than focusing on your product’s features and benefits, solution selling is centered around your prospects’ needs:

• What are their goals and pain points?
• What problems and challenges are they facing?
• What is the outcome that can solve their needs?

Solution selling means being both  empathetic and practical . The seller should go beyond the surface-level handshake and really understand the buyer’s industry, challenges, and goals. When you walk in your customer’s shoes and understand their pain points from the inside out, you are much more qualified to tailor the right solution to them.

There’s a cliche that sales is all about building rapport based on small talk. Solution selling goes deeper. Rapport is based on knowing your customer. Maybe they’re about to have a merger, or they’re experiencing challenges with the supply chain. The solution seller’s role is to provide insight that helps customers see a vision of a better future.

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Solution selling can be an effective way to approach any sales scenario. However, it’s most effective when you’re working with prospects who need a solution to a unique or “niche” problem. This often occurs in industries that feature the following characteristics:

• High-value sales and long sales cycles focused on software systems, industrial or manufacturing equipment, or IT consulting
• An inventory marked by evolving technology such as telecommunications and healthcare
• Significant regulatory compliance requirements, such as those in the pharmaceutical and finance industries

It’s called “solution” selling and not “product” selling for a reason: you’re selling a solution, a recommendation, or an outcome. To talk about an outcome, you need to understand the challenges and needs of where your prospect is now.

Here’s a series of steps you can follow when perfecting your own solution sales techniques:

1. Understand your customer

Effective sales conversations only happen when you understand your customer. So, start there!

First, explore your company’s  buyer personas  to familiarize yourself with the type of organization, person, and pain points you’ll be dealing with most often. This information is theoretical, and you’ll need to make adjustments when you interact with a real client, but it’s a smart place to start.

Next, read up on the industry and research particular customers you plan to meet. Your customer relationship management product may help you do this using  artificial intelligence (AI).

Finally, use your discovery call with a potential client to ask leading questions and learn more about them. Start with the following and see where the conversation takes you:

• What is your biggest priority this year?
• What obstacles stand in your way?
• What solutions have you already tried?
• What do you stand to lose if you can’t fix this problem?
• What do you stand to gain if you can?

By allowing your understanding of the customer to develop 1:1, you’ll capture a clear and detailed picture of the customer’s circumstances and needs. You’ll then be able to assess how your solution will fit into the bigger picture.

2. Understand your products

Solution selling may not be about selling product features, but it’s still important to understand them. After all, your product’s features are the reason you’re able to solve your customer problems. Once you have an overview of your customer’s basic needs, you’ll have the context you need to be able to map your products’ features to those challenges to identify potential solutions.

Here are a few things you can do to quickly build up your understanding of your product’s features:

• Attend a live or pre-recorded demo of your product. A live or recorded product demo gives you a good sense of how customers are introduced to your product. It will also walk you through the most straightforward use cases of the product for you to learn.
• Listen to recorded sales calls or customer calls. Many organizations use call recording software to capture real-life customer feedback. Incorporate “listening tours” with customers into your routine so you can stay up-to-date with how they perceive your product.
• Take notes. Build a habit of taking notes and summarizing what you learn from prospects in a notebook or digital app. Reflect on these notes weekly and curate your own body of knowledge about your product’s features.

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3. show clients exactly what they’re missing.

After completing the first two steps, you’ll be well on your way to a solution selling process that’s tailored to your customer’s needs, and not just a generic list of features on a sales sheet. Why? Because you’ll have a deep understanding of the problems they’re experiencing, and you’ll understand the priority of those problems. You can then map each problem to a solution or feature available in your product, and paint a picture of how this problem can be solved holistically.

For example, let’s say you’re selling a cloud-based business technology solution to a  small manufacturing business.  Their sales reps keep losing deals because of supply chain forecasting issues. The real problem? They don’t have real-time inventory information to react and adjust proactively.

Here’s what your product offers that can serve as a solution: Real-time inventory information for every stakeholder and a single source of truth will ensure they’re always on same page. With this, they can efficiently identify and get ahead of any challenges related to the supply chain. As you share these details, be sure to show them how they can succeed with your partnership, don’t tell them how your product works.

4. Close the deal and maintain the relationship for the future

The relationship-focused approach of solution selling continues throughout the  sales funnel  all the way up to closing the deal and beyond. In fact, our State of Sales Report highlights that the ongoing relationship with a customer is a growing area of focus for sales teams:  80% of sales reps  say maintaining customer relationships after the close is increasingly important, and 92% say they are at least partially evaluated on post-sale metrics like customer value and customer retention

Every sales strategy has benefits and drawbacks, and solution selling is no exception. If you’re thinking about this approach, here are some pros and cons to consider.

Pros of solution selling

• Focuses on the customer’s long-term success.  Solution selling focuses on the customer’s long-term vision for their business and emphasizes eliminating challenges that are limiting their growth. This approach builds up a partnership based on trust and mutual benefit, rather than a temporary, transactional relationship. By working with you, your customer gains access to more efficiency in their business, and you capture a potentially recurring source of revenue — it’s the definition of win-win.
• Customized to each customer.  Solution selling grows out of a 1:1 relationship with a customer, resulting in a well-designed, well-implemented recommendation that’s unique and customized to each customer. This should lead to a happier customer who is more likely to return for your input and recommendations again and again.

Cons of solution selling

• Time commitment. Solution selling works for almost every sales scenario. But because you must prioritize long-term value and ROI over short-term gains, you will need to invest significant time and energy in building recommendations and a long-term relationship with a prospect.
• High-touch. Solution selling requires the salesperson to be intimately familiar with the customer and engage in in-depth conversations about their business needs, ultimately requiring more per-customer research and time in conversation than other kinds of selling.
• Longer sales cycles. Partly because of the increased frequency of meetings and partly because of the customization of the solution itself, solution selling can require a longer sales cycle or cadence than other kinds of selling.

Build trusted relationships with solution selling

In the years since solution selling debuted, the sales mindset has been moving from “Always be closing” to “Always be helpful.” As sales becomes less about the volume play and more about the quality play, the focus has to shift to customers’ needs and delivering real value. Solution selling does exactly that.

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Erin Hueffner is a writer from Madison, Wisconsin. Her career spans two decades in tech, journalism, and content marketing. At Salesforce, Erin’s work focuses on sales fundamentals and best practice content for Salesblazers. Erin has a bachelor’s degree in English from the University of ... Read More Wisconsin-Madison.

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A tech company out of San Diego is working to solve the vexing problem that is child care, by creating a platform where employers, working parents and child care providers can connect and transact.

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