How Do I Find a Good Business Idea?

Why looking for 'innovation' is the wrong starting point

Many aspiring founders get stuck trying to think of something that has never been done before. This is the hardest way to start a business because you have to both build the solution and educate the market on why they need it. A much more reliable route is to find a service that is already in demand and do it better, faster, or for a more specific segment of the market.

Successful businesses are often just better versions of things that already exist. If you see a company with poor reviews, slow response times, or outdated technology, you have found a potential business idea. You don't need to reinvent the wheel; you just need to provide a wheel that actually turns for the people who need it right now.

The Evans 'Opportunity Engine' (/opportunity-engine) approach focuses on this: identifying existing demand and aligning it with your ability to deliver a superior or more focused outcome.

Identifying 'frictions' and 'workarounds'

A 'friction' is anything that makes a process slower or more difficult than it should be. A 'workaround' is a temporary fix someone has created because the proper solution doesn't exist or is too expensive. Both are goldmines for business ideas. If you see a colleague using a complex, home-made spreadsheet to manage a task, that is a sign that the existing software is failing them.

Look for tasks that people describe as a 'nightmare' or a 'necessary evil'. When you hear someone say 'I wish there was a better way to...', pay close attention. The goal is to find a problem that is important enough that the customer is already trying to solve it, even if their current solution is inefficient.

Don't look for problems that *could* be solved; look for problems that *must* be solved. The difference is the customer's willingness to pay.

The 'High-Value Problem' framework

Not all problems are worth solving. A good business idea addresses a problem that is either high-frequency (it happens every day) or high-consequence (it happens rarely but costs a lot when it does). For example, helping a construction firm manage their CIS compliance is high-consequence because the penalties for failure are significant. Providing a specialised cleaning service for medical labs is high-frequency because it must be done daily to a high standard.

When evaluating an idea, ask: what happens if the customer does nothing? If the answer is 'not much', the idea is weak. If the answer is 'they lose money', 'they risk a fine', or 'their staff will quit', the idea has potential. You want to be the aspirin for a headache, not the vitamins for general health.

Using your professional expertise as a filter

Your best ideas will come from what you know. If you are a project manager, look at why projects in your sector always go over budget. If you are in sales, look at why the lead-handover process is always broken. Your expertise allows you to see the nuances that a generalist would miss.

This approach also gives you immediate credibility. It is much easier to sell a solution to a problem you have personally experienced and solved for others in the past. Your background is your proof of concept. Use it to narrow down your search to ideas where you can speak the language of the customer from day one.

The 'Three-Question Test' for any new idea

Before spending time or money on an idea, ask yourself: 1) Who exactly is the buyer? 2) Why do they need this *right now*? 3) How do they currently solve this, and what is the cost of that solution? If you cannot answer these with specific details, the idea is still too vague.

A vague idea like 'a better way to manage teams' is hard to sell. A specific idea like 'a tool for site managers to track subcontractor attendance via WhatsApp' is much easier to validate. Specificity is the key to finding a good idea that actually converts into a business.

Common traps to avoid when searching for ideas

Avoid ideas that rely on 'going viral' or requiring millions of users before they become profitable. Avoid ideas in highly regulated sectors unless you already have the necessary qualifications or a clear path to compliance (such as FCA for financial services or CQC for care). Most importantly, avoid ideas where you are the only person who thinks it's a problem.

Validate the demand before you build the solution. A good idea is only good if someone is willing to pay for it. If you can't find five people who say 'I would pay for that today', keep looking. The world is full of interesting ideas that are not viable businesses.