How to Get Small Business Ideas and Evaluate Them

Small Business OS: Practical strategies for building a business that works.

The hype around unicorn startups and venture-backed companies is real, but let’s face it, that’s not what keeps the world going. Small businesses do. From local bakeries to boutique consultancies, these businesses show that there is a whole world of opportunity outside the high-stakes world of startups. And the best part is, starting one is actually within reach for most people.

Not everyone wants to pitch to VCs or chase the next tech trend. A lot of people just want to build something meaningful, sustainable, and rooted in their own skills and passions. That is why we started the Small Business OS series, to help people create practical, people-centered businesses without needing big funding or Silicon Valley connections.

So, whether you’re brainstorming your first small business idea or fine-tuning the concept that’s been on your mind for years, we’re here to help. Let’s explore the world of small business, starting with how to come up with that perfect business idea.

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Table of Contents

1. How to Come Up with Business Ideas

• The Ikigai Method: Aligning Passion and Profit

• Solving Everyday Problems: Where Frustration = Opportunity

• Following Emerging Trends: Spotting What’s Next

• Using Online Communities for Inspiration

• The 10-Problems Exercise: A Simple Yet Effective Brainstorming Method

• Reverse Brainstorming: Turning Bad Ideas into Good Ones

2. Brainstorming Techniques and Frameworks for Creativity

• Mind Mapping: Visualizing Your Ideas

• SWOT Analysis: Understanding Strengths, Weaknesses, Opportunities & Threats

• Customer Feedback: Learning Directly from Your Market

• SCAMPER Method: Innovating by Tweaking Existing Ideas

• Blue Ocean Strategy: Creating a Unique Market Space

• Jobs to Be Done (JTBD): Identifying What Customers Really Want

3. Using AI Tools for Idea Generation

• Why AI is a Powerful Business Ideation Tool

• How to Use AI to Generate Business Ideas

• Crafting Effective AI Prompts for Better Results

• Using AI to Validate and Expand Your Ideas

• AI for Branding: Naming, Positioning, and Slogans

4. Reddit and Online Communities: Hidden Goldmines for Business Ideas

• Why Reddit is an Essential Tool for Entrepreneurs

• Best Subreddits for Small Business and Startup Ideas

• How to Effectively Use Reddit for Market Research

• Engaging in Online Conversations to Find Gaps and Needs

5. Physical vs. Online Businesses: Choosing the Right Path

• Pros and Cons of Brick-and-Mortar Businesses

• Pros and Cons of Online Businesses

• Key Questions to Help You Decide

• Hybrid Business Models: Combining Physical and Digital Strategies

6. Ideas vs. Execution: Turning a Concept into a Real Business

• Why Execution Matters More than the Idea

• How to Validate Your Business Idea

• Creating an Actionable Business Plan

• Common Execution Mistakes and How to Avoid Them

• Preview of the Next Guide: Moving from Idea to Action

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How to Come Up with Business Ideas

Coming up with a small business idea can feel daunting (we get it, it’s not easy to know what will make money and what won’t!). Pro tip: The best ideas often come from the simplest places, your own experiences, curiosities, or even frustrations.

Here’s a look at all the different ways you can come up with a small business idea.

Look at Your Passions and Skills Using the Ikigai Method

Start with what you already know and love. Your passions and skills can lead you to your perfect business idea. Here’s where Ikigai, the Japanese concept of finding purpose, comes into play. It’s about aligning four things:

• what you love,

• what you’re good at,

• what the world needs

• and what you can get paid for.

Ikigai (pronounced “eye-ka-guy”) is a philosophy centered on harmonizing the spiritual and the practical aspects of life.

It represents the sweet spot where your passions and skills align with what the world needs and values enough to support.

Think about what comes naturally to you, the things people always turn to you for. Maybe you are great at planning events, fixing tech issues, or turning a simple recipe into something incredible. Now, pair that skill with something you are passionate about. If you love food, you could start a pop-up dining experience or create a recipe subscription service. If design is your thing, you might help small businesses upgrade their branding.

The best small business ideas happen when your natural strengths align with what excites you most. That is where your potential business starts to take shape.

Solve a Problem

Some of the best businesses come from asking one simple question: What’s driving me crazy right now? Frustration = inspiration when it comes to business ideas. Think about problems you’ve faced, or better yet, problems others are dealing with.

For example, do people in your neighborhood struggle to find reliable pet sitters? Boom! A pet care service might be just the thing. Solving a specific problem not only gives your business a purpose but also ensures there’s demand for what you’re offering.

Airbnb started because the founders could not find affordable lodging, and Spanx was created when Sara Blakely got fed up with uncomfortable pantyhose.

Follow Emerging Trends

Staying ahead of trends can open up incredible opportunities. Keep an eye on industries experiencing growth sustainable products, remote work tools, or niche fitness programs, for instance. Exploding Topics is a great place for that!

But here’s the trick: Don’t just chase trends blindly. Ask yourself how you can add your unique spin. Maybe you’re passionate about wellness and see the rise of plant-based diets. Could you create a delivery service for plant-based meal kits in your area? Trends are great, but your personal touch is what makes them unique and business-worthy.

(Sea Moss Gummies business anyone?)

Use Online Communities

The internet is a goldmine of inspiration. Online forums, social media groups, and community platforms like Reddit or Facebook are buzzing with people talking about their needs, frustrations, and dreams. Dive in and pay attention.

For example, a Reddit thread might reveal a common struggle among remote workers, like finding quiet co-working spaces in small towns. That could spark an idea for creating local, flexible workspaces. Personally, I love Reddit and we’ll discuss this extraordinary platform in detail later. But remember that online communities are like modern-day brainstorming hubs, filled with untapped potential.

Write Down 10 Problems

Here’s a fun and effective exercise: grab a notebook and list out 10 problems you’ve faced or observed recently. They can be small (like your coffee always getting cold before you finish it) or big (like the lack of mental health resources in your area).

The goal is to get your creative juices flowing. Once you’ve got your list, ask yourself how you could solve each problem. For instance, if you’re annoyed by messy cables around your workspace, maybe you could design a stylish cable organizer. This simple method helps you focus on tangible, real-world opportunities.

Reverse Brainstorming

This one’s a little unconventional, but it works wonders. Instead of thinking about how to make a great product, ask yourself: How could I make a terrible one? Yep, you read that right. Seriously, brainstorm ways to create the worst version of a product or service. Here’s why.

For example, imagine you’re designing a coffee shop. What would make it awful? Bad lighting, no seating, overpriced drinks? Now flip those negatives into positives: cozy lighting, plenty of seating, fair pricing. You’re not just fixing problems; you’re creating something valuable.

6 Brainstorming Techniques and Frameworks for Creativity

Alright, let’s talk about creativity - an essential element of life and business.

First off, don’t wait for a random spark of genius to hit you, instead, create the right environment for good ideas to surface. Most of the best ideas come from asking the right questions, looking at things from fresh angles, and giving yourself the time and space to think.

Whether you are starting from scratch or trying to refine an idea that has been stuck in your head, having the right tools, structure, and techniques can make all the difference. Creativity is less about talent and more about how you approach the problem.

Whether you're brainstorming your next business idea or refining one, these 6 proven techniques below can help you think more clearly, creatively, and strategically.

1. Mind Mapping

Picture this: you have one idea in the center of a page, and from that idea, other related thoughts branch out like the limbs of a tree. That’s a mind map.

Start with a central concept, say, "local food business." Then, draw branches for related ideas: meal kits, food trucks, catering, or farmers' markets. From there, keep branching out: meal kits could lead to “plant-based” or “ready-to-cook.” The goal is to visually expand your thinking, helping you see connections you might have missed otherwise.

Mind maps work because they mirror the way your brain processes information, making it easier to untangle complex thoughts and spark new ones. Grab a pen and paper (or use digital tools like Miro or Canva) and watch your ideas grow.

2. SWOT Analysis

A very popular technique. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It’s less flashy than some other techniques but just as powerful. Here’s how it works:

1. Strengths: What are you really good at? Maybe you’re great at baking or have excellent people skills.

2. Weaknesses: Be honest—what’s holding you back? Lack of capital, experience, or time?

3. Opportunities: What’s happening in your market or community that you can take advantage of? Are people craving more eco-friendly products or local services?

4. Threats: What external factors could be a challenge? Competitors? Economic trends?

By mapping this out, you’ll have a clearer picture of where you stand and what steps to take.

3. Customer Feedback

Sometimes, the best ideas don’t come from you. They often come from the people you want to serve. Customer feedback is vital when you’re brainstorming.

Start by talking to friends, family, or potential customers. Ask open-ended questions:

• “What frustrates you about [specific topic]?”

• “If you could change one thing about [product/service], what would it be?”

• “What’s a small thing that would make your life easier?”

For example, if someone mentions they hate how most planners don’t fit their chaotic schedules, you might think about designing a flexible, modular planner. Feedback doesn’t just spark ideas, it gives you insight into real problems worth solving.

4. SCAMPER Technique

SCAMPER is an acronym for a set of creative prompts: Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, and Reverse. It’s a way to tweak existing ideas or create something entirely new.

Let’s say you’re brainstorming a new coffee shop:

• Substitute: What if instead of coffee, you focused on tea or mocktails?

• Combine: Could you mix a café with a coworking space?

• Adapt: What works in other industries that you could bring to coffee shops?

• Modify: How could you change the shop’s layout to make it more inviting?

• Put to another use: Could your space double as an event venue in the evenings?

• Eliminate: What unnecessary features could you cut to lower costs?

• Reverse: What if you flipped the idea completely and created a mobile café instead?

SCAMPER encourages you to see familiar things in unfamiliar ways, opening up possibilities you might not consider otherwise.

5. Blue Ocean Strategy

The Blue Ocean Strategy is about stepping away from crowded markets (the "red ocean") and creating your own niche (the "blue ocean").

For example, instead of starting another gym in a saturated market, you might create a fitness program tailored to a niche audience, like seniors or new moms. It’s not about competing with everyone else, it’s about creating something so unique that competition becomes irrelevant.

Ask yourself:

• What do people want that no one else is offering?

• Are there underserved groups in my community or market?

• Can I combine existing ideas in a way that feels completely fresh?

By focusing on your "blue ocean," you position yourself as a leader rather than just another option.

6. Jobs to Be Done (JTBD)

This framework flips the traditional approach to brainstorming by focusing on the "job" a customer is hiring your product or service to do. People don’t just buy things, they buy solutions to problems.

When someone buys a luxury watch, they’re not just buying a tool to tell time, they’re buying a symbol of status, a piece of craftsmanship, or a way to commemorate a milestone in their life.

Understanding this deeper motivation helps you position your product or service to truly resonate with your customers' aspirations and emotions. What bigger story are they trying to tell, and how can your business be part of it?

Ask questions like:

• What are people struggling with right now?

• How do they solve these problems today?

• What would make their lives easier, faster, or better?

JTBD helps you focus on outcomes rather than just features. It’s a customer-centric way to brainstorm ideas that truly resonate with your audience.

Brainstorming is about using the right tools to shape your creativity into something tangible and exciting. Whether you’re mapping your thoughts, analyzing strengths, or flipping bad ideas into good ones, these techniques can guide you toward your next great business idea.

Using AI Tools for Idea Generation

AI tools have revolutionized how we brainstorm, making it faster, smarter, and more efficient to generate business ideas. Platforms like ChatGPT, Jasper, and Writesonic are not just for content creation, they can be your brainstorming partners, helping you explore new niches, refine concepts, and even validate your initial ideas.

Why Use AI Tools for Business Idea Generation?

AI tools excel at analyzing vast amounts of data and delivering insights in seconds. They can:

• Generate fresh, niche ideas tailored to your industry or interests.

• Provide variations or improvements on your initial concept.

• Help identify market gaps or opportunities you might not have considered.

• Save you time by producing multiple ideas or directions in one sitting.

Whether you’re stuck at square one or refining a vague concept, AI can provide the spark you need to move forward.

How to Use AI Tools Effectively + Sample Prompts

To get the most out of AI, it’s all about asking the right questions. Here’s a step-by-step guide to help you craft tailored prompts and maximize value from tools like ChatGPT or Jasper.

1. Start Broad: Discover Niche Ideas

If you’re exploring general directions, begin with open-ended questions. AI thrives on broad prompts to kickstart brainstorming.

Example Prompts:

• “What are some unique small business ideas for [specific industry]?”

• “List niche business ideas for someone passionate about [your interest].”

• “Suggest creative business ideas in [your location].”

Let’s say you ask: “What are some niche business ideas for a pet lover?”
AI might respond with:

1. A luxury pet grooming service.

2. Subscription boxes for pet owners.

3. A mobile app for finding pet-friendly locations.

2. Refine Your Results: Get Tailored Suggestions

Once you have a general idea, use AI to dig deeper and personalize the concept. Refine the focus by adding constraints like target audience, budget, or resources.

Example Prompts:

• “Can you refine [idea] for a low-budget startup?”

• “How can [idea] cater to seniors or busy professionals?”

• “Suggest three ways to make [idea] eco-friendly.”

For instance, if your initial idea is a pet grooming service, you can ask:
“How can I make a pet grooming service affordable and eco-friendly?”
AI might suggest:

• Using biodegradable grooming products.

• Offering mobile services to reduce operational costs.

• Creating a membership model for regular customers.

3. Use AI to Explore Market Trends

AI tools can help identify emerging trends or market gaps, giving you a competitive edge. Ask questions that focus on current opportunities.

Example Prompts:

• “What are the latest trends in [industry]?”

• “What products or services are in high demand in [your location]?”

• “What business opportunities are growing due to [specific event, like remote work or sustainability]?”

If you’re interested in food trends, for example, ask:
“What food-related businesses are trending in 2025?”
AI might suggest:

• Plant-based fast food restaurants.

• Locally sourced meal prep kits.

• Personalized nutrition plans powered by AI.

4. Validate and Expand Existing Ideas

AI can also help evaluate your ideas by suggesting next steps, potential challenges, or ways to expand. Use it as a sounding board to fine-tune your concept.

Example Prompts:

• “What are the risks and benefits of starting [idea]?”

• “How can I differentiate [idea] from competitors?”

• “What additional services can I offer alongside [idea]?”

For example, if you’re considering a local bakery, you can ask:
“How can I make my bakery stand out in a small town?”
AI might suggest:

• Hosting baking workshops or classes.

• Introducing seasonal, themed menu items.

• Offering delivery or online ordering for convenience.

5. Explore Naming and Branding Ideas

Once you have a solid concept, use AI for brainstorming names, slogans, or branding elements. It can generate creative, memorable options that resonate with your target audience.

Example Prompts:

• “Suggest 10 creative names for a [business type].”

• “What slogans would work for [business idea]?”

• “How can I position [idea] as a premium brand?”

For instance, if you’re opening a coffee shop, ask:
“What are some catchy names for a cozy coffee shop that focuses on sustainability?”
AI might respond with:

1. Brew & Bloom.

2. Green Grounds Café.

3. The Conscious Cup.

Tips for Crafting Effective Prompts

1. Be Specific: The more details you include in your question, the better the results. Instead of “Suggest business ideas,” try “Suggest business ideas in the wellness industry for under $10,000.”

2. Iterate: If the first response isn’t quite right, tweak your prompt or ask follow-up questions.

3. Ask for Examples: AI can provide real-world analogies or case studies to clarify its suggestions.

4. Experiment: Don’t hesitate to play around with phrasing or different angles to explore new possibilities.

Using AI tools for idea generation is like having a brainstorming partner available 24/7. They don’t replace your creativity or intuition—they amplify it. By asking thoughtful questions and refining their output, you can uncover unique, tailored business ideas that align with your goals and passions.

Reddit Groups You Can Join for Inspiration

As we have already mentioned, Reddit is a goldmine for anyone looking to kickstart or grow their small business. It’s like a giant, global community where people share advice, troubleshoot problems, and connect over common interests. Whether you’re exploring new business ideas, stuck on a particular challenge, or just looking for inspiration, Reddit has a group (or “subreddit”) for you.

What makes Reddit so valuable? It’s the authenticity. Unlike other platforms, Reddit thrives on genuine discussions and unfiltered advice. You’ll find people sharing their successes, failures, and everything in between, no sugar-coating, just practical insights. Plus, it’s a great way to stay updated on trends and learn from others in your field.

Here are some must-join subreddits to help you on your small business journey:

r/smallbusiness

If you’re starting, running, or growing a small business, this is your go-to subreddit. Members share tips, tools, and advice on everything from managing cash flow to navigating tax season. Whether you’re looking for step-by-step guides or just a supportive community, r/smallbusiness has got you covered.

r/startups

This subreddit leans a bit more toward tech startups, but don’t let that deter you. It’s packed with resources on scaling, funding, and overcoming common business hurdles. If you’re looking to take your small business to the next level or explore scalable solutions, this is the place to be.

r/entrepreneur

A space where entrepreneurs from all industries come together to share stories, ask questions, and collaborate. Whether you need feedback on an idea, motivation to keep going, or just someone who “gets it,” r/entrepreneur is an inspiring hub for all things business.

r/business

This subreddit is perfect for staying in the loop with general business news and trends. Members also discuss practical tips and potential pitfalls, making it a great resource for both learning and staying informed about the broader business landscape.

r/Marketing

Every business needs marketing, and this subreddit is a treasure trove for strategies, tools, and advice. From ad campaigns to content creation, you’ll find actionable tips and discussions on how to market your business effectively. It’s also a great spot to connect with marketing professionals who can offer insights tailored to your niche.

r/sideproject

If you’re working on a side hustle or testing out a new business idea, this subreddit is for you. Members share their projects, receive constructive feedback, and celebrate their wins. It’s a supportive space where you can refine your ideas and maybe even find collaborators.

You can also check out this Reddit search map to find an endless amount of subreddits.

How to Get the Most Out of Reddit

To get the most out of Reddit, it’s important to actively engage with the communities you join. Don’t just scroll and observe, jump into conversations, ask thoughtful questions, and share your own experiences. Reddit thrives on interaction, and the more you contribute, the more you’ll gain in return. When seeking advice or insights, use the search bar first. Chances are, someone else has already asked a similar question, and you can save time by exploring past threads filled with valuable information.

Respect is key to building connections within these communities. Offer encouragement, share your expertise when you can, and avoid coming across as overly promotional or dismissive. Mutual support is the foundation of Reddit’s culture. Lastly, consistency is your secret weapon. By checking in regularly and staying engaged, you’ll not only stay updated on trends and advice but also build relationships that could benefit your business journey in the long run. Reddit works best when you treat it as a conversation, not a one-time visit.

Physical vs. Online Business: What Should You Choose?

Lastly, let’s quickly touch on physical vs online businesses. Each option comes with its own set of advantages and challenges, and the right choice depends on your goals, lifestyle desires, skills, and market. Let’s break it down to help you decide.

Physical Businesses

A physical business operates out of a brick-and-mortar location, such as a retail shop, restaurant, or fitness studio. It’s a classic model, but is it right for you?

Pros:

• Tangible Presence: Customers can see, touch, and experience your products or services firsthand, building trust and loyalty.

• Local Impact: Physical businesses often create a strong sense of community and are perfect for serving localized markets.

• Instant Feedback: Face-to-face interactions allow you to gauge customer satisfaction in real time.

Cons:

• Higher Startup Costs: Rent, utilities, inventory, and staffing can add up quickly.

• Geographical Limitations: You’re limited to customers who are within driving distance of your location.

• Fixed Hours: Operating a physical space often means being tied to specific hours, which can limit flexibility.

Online Businesses

Online businesses operate primarily on the internet, such as e-commerce stores, digital services, or content-based ventures. They’ve grown exponentially in recent years, but they’re not without challenges.

Pros:

• Lower Overheads: With no rent or utility bills for a storefront, online businesses are often more affordable to start.

• Global Reach: The internet allows you to reach customers far beyond your local area, opening up a world of possibilities.

• Flexibility: Online businesses often provide more freedom in terms of working hours and location.

Cons:

• Intense Competition: Standing out in the crowded online marketplace can be tough, requiring strong marketing and branding efforts.

• Lack of Physical Interaction: Building trust with customers can be more challenging without face-to-face interactions.

• Tech Dependence: From website management to digital marketing, an online business requires a solid grasp of technology.

How to Choose the Right Option

Deciding between a physical and online business comes down to understanding your product, audience, and personal strengths. Ask yourself:

1. Who is my target market?
   If you’re serving a local community, a physical location might make sense. If your audience is broader, online could be the way to go.

2. What’s my budget?
   If funds are tight, starting online might be more feasible.

3. What’s my skill set?
   If you’re comfortable with technology and digital marketing, an online business will feel more natural. If you thrive on in-person connections, a physical space might suit you better.

4. What’s my product or service?
   Some offerings, like restaurants or fitness studios, work better in person. Others, like e-commerce or virtual consulting, thrive online.

The beauty of modern business is that you don’t always have to choose. Many successful entrepreneurs combine both models, opening a physical shop while maintaining an online presence to reach wider audiences. The key is to align your business model with your vision, resources, and market.

Whatever you decide, remember: both physical and online businesses have the potential for success if executed thoughtfully. It’s all about finding the fit that works for you.

Ideas vs. Execution

Ideas are just the starting line. The real magic happens in the execution (and it’s also the hardest part).

Think about it: how many people have said, “I had that idea first!” when a new product or service takes off? The truth is, ideas are abundant. What sets successful businesses apart is the ability to bring those ideas to life, turning sketches on a napkin into something tangible, impactful, and sustainable.

Execution is where the real work begins. It’s about rolling up your sleeves and diving into the nitty-gritty, market research, financial planning, marketing strategies, and day-to-day operations. This is where vision meets reality, and where many aspiring entrepreneurs stumble. It’s not because the idea wasn’t good enough, but because execution is the harder, less glamorous part of the journey.

That’s why we’re dedicating the next article to execution. We’ll break down how to validate your idea, create an actionable plan, and navigate the inevitable challenges of turning your dream into a functioning business. Because no matter how brilliant your idea is, its success depends on what you do next.