Creating a business based on impulse is very dangerous. It’s much better to learn how to analyze needs and solutions in order to find undiscovered business opportunities. If you don’t want to put too much risk into your new venture, base it on real customer needs.
Choose a product or service that you use.
. . . ideally in the area that you are passionate about.
Create a tree of at least half a dozen needs.
Include possible solutions for these needs.
Let’s explain what a tree of needs is. Every product or service is a solution for a need, and that solution generates more needs. This is because the solution is not perfect, or it opens a market for additional products. For example, iPhone opened the need for mobile apps, phone covers, and even iPhone repair services. What’s more, solutions for these need open other potential needs. For example, mobile apps created the need for programming services. And so on. Every need has or can have a solution, and every solution creates a new set of needs.