Most people believe they have a great business idea, but many fail before they even start. The problem is not effort or motivation—it’s the idea itself. In this article, you’ll learn how to use my Demand Matrix to filter out weak ideas and focus on those with real potential.
Crucial Factors You Need To Know
Most people get stuck because they have not found the right business idea. It’s not just about coming up with something that sounds good, the idea needs to have real potential.
Searching online for business ideas will give you millions of results, but most aren’t practical. They fail to consider personal skills, interests, or what people are willing to pay for. A generic list doesn’t provide a path to a sustainable business.
A successful business needs to be both profitable and realistic. Without demand, even the best idea will struggle. A poor choice can lead to wasted time and energy with little to show.
Ask yourself these questions:
- Is this something people are already paying for?
- Is there a market for it?
- Do you actually care about it enough to stick with it when things get tough?
The best approach is to look at what is already working—people who succeed in business focus on solving real problems in a way that makes financial sense. Finding the right idea means identifying opportunities where skills, experience, and demand overlap.
This guide will walk you through a three-step process designed to uncover your strongest business ideas. The goal is to find something that aligns with your existing strengths, has clear market demand, and can be built into a profitable venture.
Step 1: Feel Free to Come up With Ideas That Suck
There are no bad ideas in the early stages. The key is identifying which ones will not work as quickly as possible.
Most people put too much pressure on themselves to come up with the perfect business idea right away. That mindset leads to overthinking, hesitation, and, ultimately, getting stuck. Instead of creating a flawless idea from the start, give yourself permission to develop ideas that might fail.
Why bad ideas are useful
Coming up with business ideas is a skill. Like any skill, it improves with practice. The first few ideas may not be great, but they often lead to better ones. The more ideas you generate, the easier it becomes to recognize patterns, identify opportunities, and refine concepts into something viable.
Successful entrepreneurs don’t wait for the perfect idea. They take action, test concepts, and adjust based on feedback. That’s the difference between someone who builds a profitable business and spends years waiting for inspiration.
The best way to move forward is to start writing down every idea that comes to mind. Don’t filter or judge them too soon. Some might be terrible, but there could be the foundation of something great hidden inside. The sooner you get bad ideas out of the way, the faster you can focus on the ones with real potential.
Once you have a list, the next step is to start filtering them.
Step 2: Ask Yourself These 4 Questions
Coming up with random business ideas is easy, but without a solid way to screen them, you’re just spinning your wheels. To cut through the BS, these four questions will help narrow down ideas and reveal real opportunities.
1. What do I already pay for?
If you’re paying for something, others probably are too. Cleaning, meal prep, fitness coaching, and online courses exist because people value convenience and expertise. Instead of reinventing the wheel, look at where money is already being spent.
Start by listing three to five things you pay for regularly. This simple exercise will highlight industries where demand already exists, making it easier to spot profitable business ideas.
2. What skills do I have?
Your practical and soft skills can be turned into a business. Some are obvious, like playing an instrument, public speaking, or coding. Others, like being highly organized, explaining things well, or making people laugh, are just as valuable.
Write down at least ten skills, no matter how small they seem. The key is recognizing what comes naturally and considering if someone would pay for it.
If you’re fluent in a second language, you could offer tutoring services to students or professionals looking to improve their communication skills. This could mean one-on-one lessons, group classes, or online courses. Language skills are always in demand, especially for business professionals, travelers, or students preparing for exams.
If you’re passionate about fitness and could build an effective workout routine, you could become a personal trainer or start an online fitness coaching business. Many people struggle to exercise and need expert guidance to reach their goals. Offering structured workout plans or accountability coaching could turn your fitness knowledge into a profitable business.
The more you explore your skills, the more opportunities will surface. Even skills that seem ordinary could be valuable when positioned the right way.
3. What do my friends say I’m great at?
Sometimes, other people see your talents more clearly than you do. Ask a few friends what they think you’re great at. Their answers might surprise you.
They might say, “You always put together great outfits,” or “Your cooking is amazing.” These casual compliments are clues to potential business ideas. If you’re struggling to come up with ideas, this step will give you at least three to five new ones.
If your friends constantly ask you for fashion advice, styling could be a great business idea. That could mean personal shopping services, an online styling consultation, or even creating content around fashion tips and trends. If they rave about your cooking, you might explore options like meal prep services, cooking classes, or writing a digital cookbook with your best recipes.
4. What do I do on a Saturday morning?
What you do in your free time, when no one is telling you what to do, can reveal your strongest interests.
- Do you spend hours researching skincare, tweaking home décor, or experimenting with recipes?
- Could you talk about fitness, gaming, or personal finance for hours?
These are signals of things you naturally enjoy. If you already love doing something, imagine how much better it would be to get paid for it.
If you spend your Saturday mornings deep-diving into personal finance strategies, you might consider turning that into a business helping others manage their money. That could mean financial coaching, budgeting workshops, or writing content on smart money habits.
If home décor is your thing, interior styling, DIY home improvement guides, or a social media brand sharing design inspiration could be viable business paths.
You’ll generate at least twenty business ideas based on your skills, interests, and real-world demand by answering these four questions. If you don’t hit twenty, revisit the questions and dig deeper.
You should also consider:
Once you have gone through the four main questions, a few additional factors can help refine your list. These elements can make the difference between an idea that remains theoretical and turns into a profitable business.
- Personality: Are you a people person or more introverted? Do you prefer hands-on work or something analytical?
- Lived experiences: Have you traveled, studied something unique, or been part of a specific culture or industry?
- What you already have access to: Equipment, professional networks, or even a niche community can give you a head start.
These factors will help refine your ideas and make them more realistic. The next step is to evaluate these ideas using the Demand Matrix to ensure they have profit potential.
Step 3: Use the Demand Matrix to Guarantee Your Success
Not every business idea is worth pursuing. Some ideas might sound great but have no market demand, while others might be profitable but require too much work for too little reward. The Demand Matrix helps sort ideas based on two key factors: how many people want the product and how much they are willing to pay.
The Demand Matrix divides business ideas into four categories:
- Top right: Golden Goose (high price, many customers)
- Top left: Mass Market (low price, many customers)
- Bottom right: High End (high price, few customers)
- Bottom left: Labor of Love (low price, few customers)
Let’s expand on each of these quadrants now:
Golden Goose (high price, many customers)
This is the best-case scenario. Many people need the product or service and are willing to pay a high price. These ideas have strong demand and high-profit potential.
- Apple’s iPhones are a classic example. Millions of people want them, and they pay premium prices.
- Certain online courses, like career coaching or investment training, attract a large audience and justify higher prices.
- High-end software like Adobe Creative Suite serves professionals who need the tools to do their jobs and are willing to pay for them.
If your idea falls into this category, it has the potential to become a highly profitable business.
Mass Market (low price, many customers)
These products or services appeal to a wide audience but must be affordable. Businesses in this category rely on high sales volume rather than large profit margins per sale.
- Books like I Will Teach You to Be Rich are priced low but sell in high numbers.
- Subscription services, like Netflix or Spotify, keep prices low but serve millions of people.
- Everyday products, such as coffee or phone accessories, sell for a small profit per unit but make money through repeat purchases.
If your idea lands in this category, the key is reaching a big enough audience to make the lower price sustainable.
High End (high price, few customers)
These businesses cater to a smaller, more exclusive group of customers but charge high prices. Rather than mass appeal, the focus is on quality, exclusivity, or luxury.
- Luxury brands like Rolex or Louis Vuitton sell expensive products to a niche audience.
- High-ticket coaching programs or consulting services work with a limited number of clients but charge premium fees.
- My “6-Figure Consulting Program” helps already successful business owners make more money.
This model can be successful if your product offers enough value to justify the price.
Labor of Love (low price, few customers)
This is the weakest category. The audience is small, and the price is too low to make real money. These ideas often start as passion projects but struggle to turn into profitable businesses.
- Teaching people niche hobbies, like yo-yo tricks or calligraphy, may have limited demand.
- Handmade crafts that take hours to create but sell for low prices often fall into this category.
- Charity-based ideas where people expect free or low-cost access are difficult to scale.
Many people get stuck in this category because they are passionate about their ideas. However, unless there is a way to increase demand or charge higher prices, these ideas are difficult to turn into sustainable businesses.
The Demand Matrix makes it easy to spot which ideas have real potential. If an idea falls into the Golden Goose or High-End category, it has a strong chance of success. If it lands in the Mass Market, it can work if the audience is large enough. But if an idea sits in Labor of Love, it’s better suited as a hobby unless there is a way to shift it into a more profitable category.
You should now be able to identify your strongest ideas, but first, make sure you won’t fall victim to any of these mistakes.
6 Brutal Mistakes That'll Kill Your Business Before It Starts
Many people fail before they even start, not because their idea was terrible, but because they made one of these avoidable errors.
Thinking your idea needs to be completely original
A lot of people believe they need a brand-new, never-before-seen idea to be successful. That is not true. Some of the biggest companies in the world were not the first to do what they did. Facebook was not the first social network. Apple did not invent the smartphone. Netflix was not the first company to rent movies.
What made these businesses succeed was execution. They took existing ideas and improved them. The real key is not coming up with something new but finding a way to stand out through better marketing, improved customer service, or a unique angle.
Getting stuck in "research mode" forever
Reading business books, watching YouTube videos, and analyzing every possible outcome feels productive. However, if research does not lead to action, it’s just procrastination. Many people convince themselves they are “not ready yet” and delay taking the first step.
Spending months planning instead of testing an idea means missing real opportunities. The best way to know if an idea will work is to test it in the real world, not in a notebook. Set a deadline. If research is necessary, give it a time limit, then move forward. Businesses are built by doing, not just learning.
Trying to serve everyone
A business that tries to be “perfect for everyone” usually appeals to no one. The best companies target a specific audience and focus on solving their problems better than anyone else.
Instead of offering general fitness coaching, someone who helps busy professionals build efficient workout routines will attract more clients. A bakery specializing in gluten and dairy free desserts will stand out more than one selling a little of everything. A marketing agency working exclusively with real estate agents will be seen as an expert, while a generalist agency will struggle to get noticed.
The more specific the audience, the easier it is to market, sell, and grow the business. If an idea tries to reach everyone, it risks being too broad to stand out.
Building something nobody asked for
Many businesses fail because they create a product first and try to force demand instead of checking if people need it. Startups have burned millions, developing apps nobody wanted. Restaurants have opened in locations without enough foot traffic to survive. Entrepreneurs have spent months on online courses that nobody was willing to buy.
The best businesses solve real problems. Before investing time or money, talk to potential customers. Ask what they struggle with and see if they would pay for a solution. If the answer is no, the idea needs adjusting.
Letting perfectionism paralyze you
A common mistake is waiting for everything to be “perfect” before launching. The first version of any business will always need improvement.
- The first Apple computer was built in a garage.
- Amazon started by selling only books.
- Airbnb’s founders launched their idea by renting out air mattresses in their apartment.
The earliest versions of most successful products were simple and flawed.
Progress is more important than perfection. Instead of waiting, launch with what is ready and improve based on honest feedback. The faster something is tested in the market, the quicker it can be adjusted and optimized.
Ignoring the numbers
Passion is important, but numbers decide whether a business survives. Without tracking expenses, revenue, and profit margins, businesses risk failure before getting off the ground.
For example, a restaurant that does not calculate food costs might sell dishes at a loss without realizing it. A freelancer charging too little might struggle to cover taxes, software, and marketing expenses. An online store offering free shipping might lose money on every sale if the pricing is not right.
Knowing the numbers means knowing how much is needed to break even, make a profit, and grow. If an idea cannot financially support itself, it’s not a business but a hobby.
Mistakes happen, but these six are avoidable with the right mindset and approach. Now that the most significant pitfalls are clear, the next step is picking the winning business idea from the list.
How to Choose Your Winning Idea
At this point, you have a solid list of potential business ideas, but now comes the hard part: choosing the best one.
Start by eliminating anything in the Labor of Love category unless money is not a concern. These ideas might be enjoyable but challenging to turn into profitable businesses. If the goal is to build something sustainable, focus on ideas that fit into the Golden Goose, Mass Market, or High-End categories.
Narrow down your list further with these questions
Once you have removed weak ideas, ask yourself these questions to refine your choices.
- Do you actually care about this idea? Running a business takes time and effort. If you don’t have at least some interest in what you’re building, staying motivated will be tough when challenges come up.
- Do people already pay for something like this? If similar businesses exist, that’s a good sign. It means there is demand. If nobody is offering something similar, it could mean there is no market for it.
- Do you have an advantage in this area? Maybe you have experience, a strong network, or access to resources that make getting started easier. Choosing something where you already have an edge increases the chances of success.
You want to try to get your list down to just two ideas.
Test before you commit
Once you have narrowed the list to one or two ideas, test them with real people. At this stage, don’t ask friends or family since they will likely tell you what you want to hear (of course, you can run ideas by them earlier). Instead, find five potential customers and ask if they would pay for your solution. Their response will be more valuable than months of research.
Your first business idea does not have to be your last. Most successful entrepreneurs pivot or adjust their approach along the way.
The most crucial step is to get started. Choose the most promising idea and take action today. That could mean reaching out to potential customers, registering a domain name, or outlining your first offer. Whatever it is, get started, gain experience, and adjust accordingly.
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