Most of the most profitable business ideas being found today tend to originate in another country, where an entrepreneur travelled, spotted the idea and set out to bring the business to their own country, where they thought it could be innovative, original and profitable.
That said, it’s true that sometimes we’ve seen a very profitable business in another country and, when we’ve tried to import it to Spain, we’ve failed because we didn’t take into account certain factors that need analysing. The idea isn’t everything. Everyone comes up with business ideas all the time, but many people forget to draw up a business plan, study the consumer and carry out a thorough market study.
Imagine this example. It may sound far-fetched, but similar cases have happened.
You travel to a country in Africa where the economy is doing well and businesses are thriving, and you notice there’s a product that is a hit in Spain and has no competition there. You decide to take it to that country, set up your distribution chain, advertise it, and six months later it has flopped.
Quite logical, if the product is ham and the region where you’ve introduced it is Muslim, where people can’t eat pork.
So when you spot a good business idea in another country and decide to import it to yours, study these points:
What kind of consumer is it?
Do people in that country have tastes similar to those in yours? Do they have the same customs? Think about whether you could adapt the product to consumers in your country without any problems. Study the market, study your potential competitors, study similar products.
Legislation
Products that sell perfectly well in some countries would be banned in yours; if not the whole product, then perhaps some “seasonings” or ingredients. You need to analyse this point very carefully.
The product’s price
Perhaps you’ve seen a product in a country where labour is very cheap and where that very product is a luxury that even the poor want to own. Once you bring it to your country, its labour costs may go up and, on top of that, people may see it not as a luxury but as something very expensive and useless. If you don’t take this factor into account, you may end up losing time and money.
These are probably the three most important points to bear in mind, although I’m sure there are many more.
Even so, once you’ve spotted a product, it’s a good idea to test it in your own country. Buy it, give it to a relative or friend as a present and watch their reaction. Ask them what they think without telling them what you have in mind. That way you’ll get an honest opinion.
Remember: these days it’s hard to come up with a good business idea, but once you have one, the idea is the least important part, and we have to move on to a second phase: studying the idea, the investment required, consumer acceptance and so on. And don’t forget that if the product is very innovative and original, you’ll need to think about how to get the advantages of your product across and the best way to make consumers aware of your business idea.
Further reading
- Once you have a good business idea, how to take it forward
- How to start a business with no money
- How to find business ideas
- How to overcome the fear of starting a business
- Why new businesses fail
Featured image: McKay Savage, CC BY 2.0, via Flickr.
