Having a good idea for a business to open, and finding a profitable business idea, are things that cannot be invented and are not due to chance.
Indeed, to find the right business idea, you will certainly have to ask yourself about your passions, your tastes, your aspirations, but also on little more materialistic and concrete elements.
A concept differentiated from the competition
You will first need to identify a differentiated concept, or a niche in which the competition is weak.
This is what will allow you to impose yourself on the market against your competitors, and therefore to have a larger customer base, synonymous with success in your business.
You will indeed have to be original in order to stand out from the competition, if not on the products sold in themselves, at least in the concept of your store or the additional services offered. Otherwise, you will have to establish yourself in a sector where competition is not too strong but without this being a sign of consumers’ disinterest in the product. It’s all a question of balance.
Attractive margins or purchasing volumes
Next, in trying to come up with a profitable business idea, you will need to consider possible margins and / or sales volume.
Indeed, if we are aiming for good profitability, we must either have attractive margins, or large purchasing volumes (that is to say large or recurring orders), or, better still, combine the two .
A location in line with the image and the target
Also pay close attention to the location of your business. The (geographical) position must be in perfect agreement with the positioning (marketing).
This means that the place where your store will be located must necessarily be in line with the image of the brand and the target. For example, we do not sell a product intended for rural retirees by setting up a store in the Marais in Paris. Likewise, setting up a concept store that sells Japanese bicycles and cardboard furniture is unlikely to work in a small town of 12,000 inhabitants.
A controlled working capital
Another point to keep in mind: controlling the Working Capital Requirement (WCR).
This obscure acronym corresponds to the cash mobilized by stocks and cash lags linked to payment terms.
Here you will have to control the stocks, and negotiate with your suppliers to obtain advantageous payment terms.
Strong growth potential
Finally, in order to determine which business to open, it is essential to examine what the growth possibilities are.
We will of course favor a business that can easily support the opening of many other points of sale, or even that would be available as a franchise.