How To Come Up With a Business Idea (2026)

Learn how to come up with a business idea with proven and unconventional methods, plus a quiz to match strategies to your entrepreneurial style.

Every entrepreneurial journey starts with coming up with a business idea—a spark that transforms into your dream enterprise. Sometimes it’s the only thing standing between you and the life you want. But what if you’re stuck? Don’t worry. While great business ideas often strike unexpectedly, you can learn how to generate ideas systematically. 

This guide will walk you through ways to come up with business ideas, complete with brainstorming exercises and real examples from successful entrepreneurs. You’ll discover how to evaluate whether your idea has profit potential (even if you’re starting with no money) and take a personality quiz for ideation tips that match your style.

Ready to start your business? Create your website today or learn more about Shopify’s tools for selling online and in person.

Key elements of a great business idea

Before diving into business names, registration paperwork, or the necessary business licenses, you need that perfect business idea. 

The difference between a fun concept and a viable business idea usually comes down to these five elements:

Clear value proposition

Start with the most important question: What problem does this solve?

If you can’t answer that in a sentence or two, head back to the drawing board. Your product or service needs to help someone in a specific way. Maybe it saves them time, cuts their costs, or makes their life better. Remember—people don’t just buy products, they buy solutions to their problems.

Target market identification

Here’s the truth: you can’t sell to everyone, and trying will only leave you frustrated. Instead, figure out who needs your solution the most. Are they busy parents juggling work and family? Small business owners working late into the night? Fitness enthusiasts chasing their next goal?

The better you understand your target audience’s daily life, challenges, and wishes, the easier it becomes to create something they’ll love.

Sustainable revenue model

Your idea might be brilliant, but can it make money? A sustainable revenue model means you’re building a real business, not just an expensive hobby. Think about how you’ll charge—maybe it’s subscriptions, one-time purchases, or different pricing tiers. Then ask yourself: Will people pay enough to cover your costs and leave you with a healthy profit? 

Competitive advantage

What makes your idea special? Whether it’s a unique feature, amazing customer service, or prices that make people do a double-take, your competitive advantage is why someone chooses you over everyone else.

Take time to check out your competition. What are they doing right? Where are they dropping the ball? Position your business to fill those gaps they’re leaving wide open.

Scalability potential

A business that works only when you’re putting in 24/7 isn’t a business—it’s just another job. This is true especially if you’re starting a business while keeping your day job. 

Think about how you can grow without burning out. Can you automate parts of it? Could you expand to new markets or add services later? The best ideas have room to grow with you.

10 ways to come up with a successful business idea

No business idea comes with a success guarantee. But if you test your ideas with the right steps, ask the tough questions, and stay open to adapting along the way, you’ve got a solid shot at building something great—whatever success looks like to you.

Here are 10 ways to generate new business ideas and turn inspiration into something real:

1. Find a problem to solve

Many low-investment and profitable business ideas start with a simple problem that needs fixing. 

That’s where the Jobs To Be Done (JTBD) framework comes in—it’s the idea that customers don’t just buy things—they hire them to do a job. 

A “job to be done” is the outcome someone hopes to achieve by using your product or service. The job is often functional, but it also has emotional and social layers that quietly shape every purchase.

Take smartphones, for example.

• Financial job: Show off a raise or save money by buying used.
• Functional job: Stream videos or take high-quality photos.
• Personal job: Land a new job, stay connected, or feel more confident.
• Social job: Signal taste, success, or belonging.

Every great product or service satisfies more than one of those jobs.

Source: Product School

To find the jobs your business can fulfill, start by spotting unmet needs: the recurring pain points customers complain about or work around. 

Then, translate those frustrations into “help me” statements like:

• Help me save time in the morning.
• Help me remember important tasks.

Each of those sentences hides an opportunity. 

“Help me save time in the morning” could lead to a store that sells pre-assembled breakfast kits or time-saving kitchen tools. 

“I need to take more clothes when I travel” might spark an idea for a carry-on brand with modular compression compartments.

Finally, turn what you learn into a JBTD statement: a one-liner that captures desire, context, and outcome.

Example: I want to buy eco-friendly cleaning supplies (desire) for my small apartment (context) so I can keep it spotless without harsh chemicals (outcome) or spending too much (pain point).

Take Range Beauty founder Alicia Scott. She couldn’t find makeup that worked with her reactive skin. “I just couldn’t get with the makeup brands that were not only ignoring my skin tone but my skin conditions too,” she says. So her solution was creating skin-friendly beauty products for a wide range of skin tones.

This step turns a loose concept into a viable business idea you can defend and improve.

2. Tap into your interests

Some of the best business ideas grow from things you already love doing. Think about your hobbies, sports, crafts, or favorite subjects. When you start a business based around your passion, you’re more likely to stay motivated through all the ups and downs of entrepreneurship.

You’re also more likely to authentically connect with your target market and build a strong community around your shared passion.

For Michael Washington, his love of the outdoors led him to launch the Usal Project, a Los Angeles–based brand dedicated to fostering community through unique experiences. 

“I liked being the producer of bringing people together around a common interest,” he says.

3. Use your existing skills

What are you naturally good at? What entrepreneurial traits do you already have? Your current skills could be the perfect foundation for a business. For example:

• Got creative chops? Think about businesses that let you work with your hands or use your eye for design.
• Tech-savvy? Consider how you could help others solve their technical problems.
• Good with people? There might be a service-based business in your future.

Michael applied the skills he cultivated during his career in the music industry to launch his business.

“I wondered how I could take that community-building expertise to other areas of my life,” he says.

4. Give existing products a fresh spin

You don’t need to invent something new—just rethink what’s already out there.

Start with four simple angles:

• Delivery: Can you get it to people faster or in a way that feels easier? A bakery offering pre-order pickups or next-day delivery can stand out without changing the recipes.
• Location: Could it work better somewhere else? A neighborhood florist going online, or a local coffee roaster setting up a pop-up at weekend markets.
• Cost: Can you make it more accessible without cheapening it? Maybe smaller pack sizes, refills, or a subscription that smooths out big one-time costs.
• Experience: What would make buying or using it feel better? A clothing brand adding fit quizzes or free alterations, for example.

Bartesian founder Ryan Close took the concept of a capsule coffee machine and applied it to cocktails. “I understood it was difficult to make great-tasting cocktails at home if you’re not a bartender,” he says. Instead of starting from scratch, he applied a creative twist to existing technology.

5. Conduct market research

Already know roughly what industry you want to start your online business idea in? Great. Now dig into the market for inspiration. You could:

• Chat with people who match your target customer
• Read industry reports and trade publications
• Follow industry influencers to understand what their audiences want
• Dig into forums and groups like Reddit, Quora, or Facebook communities
• Use keyword research tools and trend-spotting sites like Google Trends or Exploding Topics that show what people are searching for online

“I started talking to dentists, dental hygienists, and spent a lot of time on YouTube and Reddit figuring out what a tablet really was, and how I could make these things,” says Lindsay McCormick, founder of eco-friendly personal hygiene brand Bite.

6. Look for underserved markets

Sometimes the best ideas come from spotting who’s being left out. Are you part of a niche online community whose needs are unmet? That could be your opportunity.

That’s exactly what Babba Rivera, founder of Ceremonia, did when she noticed the entire hair care industry was serving stylists and celebrities, not the everyday person. 

“What I felt was missing in the market was, truthfully, the care aspect of hair care, because the hair aisle for the longest time has been dominated by the styling first approach, and it’s been fronted by celebrities and celebrity hairstylists, and it’s been all about the red carpet looks,” she explains on a recent Shopify Masters episode. “And the reality is that most people are not walking on any red carpets. Like, we’re just trying to have a good hair day on a day-to-day basis, right?” 

Rivera realized the products were packed with harmful ingredients that “have no business in our hair,” and from there, created Ceremonia. 

7. Watch for emerging trends

Want to spot the next big consumer trends? Keeping your eyes peeled for trending products? Social platforms like Pinterest and TikTok have dedicated trend pages that can spark fresh business ideas.

Just remember, by the time everyone’s talking about a trend, it might be on its way out. Try thinking sideways instead. 

That’s what Miguel Leal did when developing products for his Mexican food brand, Somos. He and his cofounders drew inspiration from the skyrocketing popularity of Asian chili crisp. They realized that salsa macha, a classic Mexican condiment, had a comparable texture that might excite chili crisp fans.

“When we look at the similarities between two products, we see this trend of global cuisine, especially in condiments,” Miguel says. “We think salsa macha is not that different.”

8. Get innovative

While many successful businesses put a fresh spin on existing ideas, there’s plenty of room to create something totally new. If you have an eye for design and spot a problem no one’s solved yet, don’t wait for perfection—develop a product prototype and test it with potential customers. Sometimes the best way to validate an idea is to invite opinions early in your development phase.

“I would highly recommend crowdfunding to anybody that’s starting a product,” says David Levy, founder of tabletop grill company Bola Grills. “You’re able to see if people are willing to pay for your idea before you actually spend all this time and money to actually make the idea or make your product.”

9. Fire up your creativity with brainstorming

Sometimes you need to give your brain a little push. Whether you’re working solo or with a group, try these proven brainstorming techniques:

• Classic brainstorming: Let the ideas flow freely. Call out thoughts and build on each other’s suggestions.
• Brainwriting: Like brainstorming, but quieter. Jot ideas on Post-its or use online tools like Miro, then discuss as a group.
• Storyboarding: Visualize ideas by sketching out different scenarios.
• Mind mapping: Start with your main idea in the center and branch out with related thoughts. 

Keep going—each branch can spark new connections.

10. Go straight to the source

Sometimes the best way to figure out what people want is simple: Ask them.

Create a short, simple survey for friends, family, or potential customers. Ask about their biggest challenges or what they wish they could improve. Better yet, grab coffee with someone who fits your ideal customer profile. Their answers might surprise you and spark ideas you’d never considered.

Nick Wiseman, cofounder of Little Sesame, feels that getting your idea in front of people early is a critical step. In a recent Shopify Masters interview, he explains, “I say that absolutely the first thing when you’re starting to embark on one of these projects is, how do you just get the product out in the world and get some real genuine feedback? You don’t have to start by launching your fully built out ecommerce experience, but do people actually want the product you’re selling?

“I think getting feedback from the community is one of the most important things to do. You really start to get an understanding of product market fit—are you solving a problem and is it a product that people want?”

7 ideation boosters for aspiring entrepreneurs

Turns out creativity isn’t luck or lightning, it’s a habit. In your brain, two systems tug at each other: one wanders (daydreams, recalls, frames “what if”), the other sharpens ideas into shape.

You can train that line between wandering and focus. University of Pennsylvania’s recent research shows that habits like walking, drifting, letting your mind hum in the background all rewire your brain to notice the invisible.

The seven ideation boosters below lean into that tension. They’re non-traditional ways to jolt your brain out of autopilot and make space for ideas that surprise you.

1. Break your routine

Getting stuck in the same daily pattern? Mix things up. Take a different route to work, eat lunch in the park instead of at your desk, or try something new on a Saturday night. While routines keep us productive, running on autopilot means you might miss the inspiration happening all around you.

2. Make space for your mind

It’s hard for fresh ideas to pop up when your mind is full of noise. You need space: to breathe, drift, wander. 

So steal real self-care time: Sway in a hammock. Paint. Garden. Play your favorite song and just blur with it.

A 2024 study found that the sweet spot between mind wandering and mindfulness (drifting but aware), was a strong predictor of creative thought.

3. Let your pen wander

Think of doodling as freestyle brainstorming. Just let your pen move across the page, filling it with whatever scribbles, words, or pictures come to mind. Don’t worry about your artistic skills, this is about letting your creativity flow, not creating a masterpiece.

4. Become a professional people-watcher

Look up from your phone and tune into what’s happening around you. Grab a coffee at a new café or park yourself on a bench downtown. Watch how people interact with their environment. You might spot problems begging for solutions.

5. Expand your circle

Fresh perspectives lead to fresh ideas. Join entrepreneur meetups where you can bounce thoughts around with other creative minds. Who knows? You might even meet your future business partner over coffee.

6. Feed your mind

Dive into books, podcasts or documentaries, or listen to music you’ve never heard before. Get inspired by other creators’ work. And don’t just stick to business content; sometimes the best ideas come from completely different fields. Even fiction can spark real-world business solutions.

7. Keep a thought catcher

Ever had a brilliant idea pop into your head during a dream, a shower, or while riding your bike?

Start keeping track of these sparks. They don’t need to be fully formed, just jot them down somewhere to explore later. If you’re not naturally a writer, try a journal with prompts or exercises to guide you, or dictate voice notes into your phone.

How to validate your business idea

Got a promising idea? Great! Now make sure it has real potential in the market. Here are several ways to test your business idea before going all in:

Test your rough drafts

Don’t wait for perfection. Sometimes the best way to validate an idea is to invite opinions early in your development phase. Create a prototype or beta version that lets potential customers interact with your concept. Their feedback will help you refine the final product, and you won’t waste money on large-scale manufacturing until you know you’re onto something good. 

Check out the competition

Take a good look at who’s already doing something similar. 

Analyze your competitors: What are they doing well? Where are they falling short? Study their products, prices, marketing approaches, and how they get their stuff to customers. This research helps you spot gaps you can fill with your business, understand what customers expect in your industry, and build a stronger business plan.

Conduct SWOT analysis

SWOT analysis (strengths, weaknesses, opportunities, and threats) is a simple but powerful way to evaluate your idea from all angles. This framework helps you think through both internal factors (what you’re good at and what needs work) and external ones (market opportunities and potential risks) that could affect your success.

Once you’ve mapped your SWOT, take it a step further with the SMART goals framework—a practical way to turn insights into action:

• Specific: Define exactly what you want to achieve. Instead of “grow sales,” try “increase online sales by 15% this quarter.”
• Measurable: Attach a number so you can track progress like site traffic, conversion rate, repeat orders—whatever matters most.
• Achievable: Keep it ambitious but realistic. If you’re just starting out, doubling sales in a month probably isn’t it.
• Relevant: Make sure each goal ties directly back to your strengths or opportunities from the SWOT.
• Time-bound: Give yourself a deadline to stay accountable and build momentum.

Together, SWOT and SMART help you see the full picture: the why behind your business idea and the how that’ll move it forward.

Keep an eye on trends

Even if you didn’t find your idea through trend-spotting, understanding what’s hot in your industry is essential. Say you’re planning to launch a cosmetics brand—knowing current color trends could help shape your product line.

Check out Google Trends, industry publications, and social platforms like TikTok and Instagram to stay in the loop. Just remember that trends can shift quickly, so look for longer-term patterns rather than fleeting fads.

💡 Tip: Don’t know how to use Google Trends for research? Check out our guide on finding and validating products for your business.

Get real feedback from real people

Don’t keep your idea to yourself. Share it with friends or, better yet, people who match your ideal customer profile. Try informal polls or surveys on social media to gauge interest.

For Michelle K. Hanabusa, founder of community-based clothing brand, Uprisers, surveys are a part of the brand’s business strategy. “We do these community surveys at the end of each year and we get hundreds of folks just really sharing with us. The things that they enjoyed that we did this year, or areas of improvement, or maybe there are issues or topics that they want us to cover,” Hanabusa explains in a Shopify Masters interview. 

Gathering this information is only half the battle. The real work, Hanabusa explains, is in honoring that feedback and letting it guide the brand’s direction. “We really take that feedback to heart and try to evolve with our community internally as a team. We always say [that] at the end of the day, even though we are a clothing brand, we’re also like servants to our community.” 

Look for gaps in your plan

While competitor analysis helps you spot market gaps, a gap analysis turns the spotlight on your own idea. It helps you see the distance between where your concept is now and where it needs to be to succeed. 

Usually, businesses do this after they’re up and running, but you can use these same techniques to strengthen your idea before launch. Think of it as a reality check that helps you spot potential ideas early.

💡 Tip: Before you dive into setup, give your business an identity that sticks. Use Shopify’s AI-powered Business Name Generator to explore names that match your concept, and instantly check domain availability.

From idea to action: Your next steps

A good idea means nothing until you give it legs. Here’s how to turn early inspiration into a brand new business idea:

1. Budget the basics

Start lean. List your must-haves (domain registration, packaging, first batch of stock) and your nice-to-haves (branding help, pro photos, upgraded gear). 

Estimate monthly costs and revenue goals side by side. You can start with a simple Google Sheet or Shopify’s business plan template.

2. Set a timeline you’ll actually follow

Give each milestone a date: product sourcing, launch prep, marketing rollout. Avoid “someday.” 

Try a 90-day window for your first version; it’s short enough to create urgency, long enough to make real progress.

3. Know when to think about funding

If your business model relies on inventory or tech tools that need upfront capital, that’s your cue to explore funding. Explore small business grants, preorders, crowdfunding, or early Shopify Capital options once you have traction and proof of demand.

When The Public Pet founder Jordan Lee needed capital to scale but couldn’t get traditional financing, he chose Shopify Capital, resulting in a 40% to 50% revenue jump and stronger appeal in his local community.

📚 Read the full Public Pet case study.

Ideation strategies for every personality type [QUIZ]

Everyone generates ideas differently. Maybe you thrive in group brainstorms, or perhaps you get your best ideas from art, nature, or books. Understanding your personality type can help you find the perfect way to spark those winning small business ideas.

👉 Take our quiz: What kind of entrepreneur are you? Then come back here and find your Founder Sign below for tailored tips!

Business idea generation for Trailblazers

You’re an idea machine, Trailblazer. Your challenge isn’t finding business ideas—it’s picking just one and making sure your excitement isn’t clouding your judgment. Group ideation sessions are perfect for you, as other perspectives help balance your strong gut instincts.

Ideation techniques picked just for your personality type are:

• Tap into your community early. You tend to fall hard for your ideas, which can make it tough to hear feedback later.
• Try creative visual techniques like mood boarding, mind mapping, or storyboarding that let your creativity shine.

Business idea generation for Outsiders

Ideation can be tricky for you, Outsider, because you thrive on routine. Your carefully crafted bubble is great for productivity but can limit your inspiration. Breaking out of your comfort zone, even a little, can spark fresh ideas.

Get unstuck and open your mind to new ideas by trying these techniques, handpicked for you:

• Start with structured brainstorming—specific prompts and questions rather than open-ended sessions that might feel overwhelming.
• Take small steps outside your routine, like trying a new lunch spot or taking a different route to work.

Business idea generation for Mountaineers

If you’re a Mountaineer, you’ve already zeroed in on your big idea and you’re charging full steam ahead. No idea yet? You might feel a bit adrift—that’s because you’re at your best when you have a clear goal to chase.

Discover your true calling through these ideation techniques picked just for you:

• Gather your trusted circle—people with different backgrounds who aren’t afraid to challenge your thinking. Have casual idea sessions or organize more structured brainstorms.
• Push your boundaries. Travel, meet new people, try new experiences; fresh perspectives often lead to breakthrough ideas. 

Business idea generation for Firestarters

Ideas? You’ve got them in spades, Firestarter. In fact, you’re probably juggling several right now. You thrive on the energy of new possibilities, so don’t feel pressured to pick just one path.

Try these methods for gathering ideas, picked for your personality type:

• Connect with other idea-people who spark friendly competition, but also seek out those who think differently. A good debate can strengthen your concepts.
• Don’t force yourself to choose just one idea. Test out your most promising ones and see which ones naturally rise to the top.

Business idea generation for Cartographers

Your eye for detail helps you craft rock-solid ideas, Cartographer. But sometimes you need to loosen up a bit. Too much structure during ideation might mean missing out on those wild, creative concepts that could turn into something amazing.

Try these ideation strategies picked just for Cartographers like you:

• Try solo mind mapping—it combines creativity with the structure you love.
• Once you’ve got your idea, dive into the data. Use market research and free entrepreneur resources to fill any knowledge gaps and support your keen instincts.

No matter your personality, you can shape your own business around what comes naturally to you.

How to come up with a business idea FAQ

How can I protect my business idea so others don’t steal it?

While you can have people sign non-disclosure agreements (NDAs) and file for patents or trademarks for specific innovations, here’s the truth: Execution matters more than the idea itself. Many successful businesses weren’t first to market—they just did it better. Your best protection is moving quickly to establish your presence and build a strong brand.

How do you develop a good business idea?

Once you’ve got your business idea, it’s time to see if it has legs. Start by validating your concept through market research to gauge demand. Run online surveys with potential customers, study industry reports, and analyze market trends. Have real conversations with your target audience. Only after you’ve confirmed there’s real interest should you start turning your idea into a business.

What is the best business to start with $1,000?

You’ll want a low-overhead, high-margin model that you can run lean. Popular picks include:

• Freelance services (design, writing, social media)
• Niche ecommerce (one product or dropshipping)
• Cleaning, pet care, or micro-services
• Online courses or coaching

Here are 24 low-investment business ideas for you. 

Is $5,000 enough to start a business?

For many entrepreneurs, yes—especially if you start online. 

Shopify’s 2025 breakdown shows you can launch a small ecommerce store for a few thousand dollars when you manage operations leanly.

Here’s what typical startup costs look like in 2025:

• Ecommerce platform and hosting: From $5 per month with Shopify.
• Domain: $10 to $20 per year.
• Packaging: 10¢ to $2 for unbranded boxes, $2 to $25 for branded.
• Marketing: Approximately 7.7% of annual revenue.
• Staffing (if needed): $32.25 per hour, plus $14.59 in benefits.

If you’re resourceful, $5,000 covers your setup, first inventory run, and a few months of operations.