What is a business idea?

Basically, a business idea is a company's reason for existing. The starting point is that the new product or service benefits potential customers to such an extent that they are ready to buy the product or service based on the business idea. For an idea to be turned into a profitable business, it needs to have a sufficiently large potential customer base. That is to say, it needs to have a big enough market.

In a nutshell, a business idea answers the following questions:

• What are the benefits for the customer and what need does the idea fulfil?
• Where are the markets? Who is the customer?
• How can the business idea be turned into a money-maker?