Skip to Main Content
HBS Online
  • Courses
    Open Courses Mega Menu
    • Business Essentials
      • Credential of Readiness (CORe)
      • Business Analytics
      • Economics for Managers
      • Financial Accounting
    • Leadership & Management
      • Leadership Principles
      • Management Essentials
      • Negotiation Mastery
      • Organizational Leadership
      • Strategy Execution
      • Power and Influence for Positive Impact
      • Leadership, Ethics, and Corporate Accountability
      • Leading Change and Organizational Renewal
      • Dynamic Teaming
      • Transforming Customer Experiences
    • Credential of Leadership, Impact, and Management in Business (CLIMB)
    • Credential of Digital Innovation and Strategy
    • Entrepreneurship & Innovation
      • Entrepreneurship Essentials
      • Disruptive Strategy
      • Negotiation Mastery
      • Design Thinking and Innovation
      • Launching Tech Ventures
      • Winning with Digital Platforms
      • Leading Change and Organizational Renewal
      • Entrepreneurial Marketing
      • Transforming Customer Experiences
    • Strategy
      • Strategy Execution
      • Business Strategy
      • Economics for Managers
      • Disruptive Strategy
      • Global Business
      • Sustainable Business Strategy
    • Marketing
      • Digital Marketing Strategy
      • Creating Brand Value
      • Entrepreneurial Marketing
    • Digital Transformation
      • Winning with Digital Platforms
      • AI Essentials for Business
    • Finance & Accounting
      • Financial Accounting
      • Leading with Finance
      • Alternative Investments
      • Sustainable Investing
      • Strategic Financial Analysis
    • Business in Society
      • Sustainable Business Strategy
      • Global Business
      • Sustainable Investing
      • Power and Influence for Positive Impact
      • Leadership, Ethics, and Corporate Accountability
      • Business and Climate Change
    • All Courses
  • For Organizations
    Open For Organizations Mega Menu
    • Corporate Learning
      Help your employees master essential business concepts, improve effectiveness, and expand leadership capabilities.
    • Academic Solutions
      Integrate HBS Online courses into your curriculum to support programs and create unique educational opportunities.
    • Need Help?
      • Frequently Asked Questions
      • Contact Us
    • Insights
      Open Insights Mega Menu
      • Business Insights Blog
        • Career Development
        • Communication
        • Decision-Making
        • Earning Your MBA
        • Entrepreneurship & Innovation
        • Finance
        • Leadership
        • Management
        • Negotiation
        • Strategy
      • All Topics
      • Learner on computer exploring HBS Online business lessons
        Sample Business Lessons and E-Books

        Gain new insights and knowledge from leading faculty and industry experts.

      • HBS Online Parlor Room podcast logo
        Podcast

        The Parlor Room: Where business concepts come to life. Listen now on your favorite podcast platform.

    • More Info
      Open More Info Mega Menu
      • Learning Experience
        Master real-world business skills with our immersive platform and engaged community.
      • Certificates, Credentials, & Credits
        Learn how completing courses can boost your resume and move your career forward.
      • Learning Tracks
        Take your career to the next level with this specialization.
      • Financing & Policies
        • Employer Reimbursement
        • Payment & Financial Aid
        • Policies
      • Connect
        • Student Stories
        • Community
      • Need Help?
        • Frequently Asked Questions
        • Request Information
        • Support Portal
      • Enroll Now
    Login
    My Courses
    Access your courses and engage with your peers
    My Account
    Manage your account, enrollment, and payments.
    HBS Home
    • About HBS
    • Academic Programs
    • Alumni
    • Faculty & Research
    • Baker Library
    • Giving
    • Harvard Business Review
    • Initiatives
    • News
    • Recruit
    • Map / Directions
    HBS Online
    • Courses
    • Business Essentials
    • Leadership & Management
    • Credential of Leadership, Impact, and Management in Business (CLIMB)
    • Credential of Digital Innovation and Strategy
    • Entrepreneurship & Innovation
    • Strategy
    • Marketing
    • Digital Transformation
    • Finance & Accounting
    • Business in Society
    • For Organizations
    • Insights
    • More Info
    • About
    • Support Portal
    • Media Coverage
    • Founding Donors
    • Leadership Team
    • Careers
    • My Courses
    • My Account
    • Enroll Now
    • …→
    • Harvard Business School→
    • HBS Online→
    • Business Insights→

    Business Insights

    Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

     
    Filter Results Arrow Down Arrow Up

    Topics

    Topics

    • Accounting
    • Analytics
    • Business Essentials
    • Business in Society
    • Career Development
    • Communication
    • Community
    • ConneXt
    • Decision-Making
    • Digital Transformation
    • Earning Your MBA
    • Entrepreneurship & Innovation
    • Finance
    • Leadership
    • Management
    • Marketing
    • Negotiation
    • News & Events
    • Productivity
    • Staff Spotlight
    • Strategy
    • Student Profiles
    • Technology
    • Work-Life Balance

    Courses

    Courses

    • AI Essentials for Business
    • Alternative Investments
    • Business Analytics
    • Business Strategy
    • Business and Climate Change
    • CLIMB
    • CORe
    • Creating Brand Value
    • Credential of Digital Innovation and Strategy
    • Design Thinking and Innovation
    • Digital Marketing Strategy
    • Disruptive Strategy
    • Dynamic Teaming
    • Economics for Managers
    • Entrepreneurial Marketing
    • Entrepreneurship Essentials
    • Financial Accounting
    • Global Business
    • Launching Tech Ventures
    • Leadership Principles
    • Leadership, Ethics, and Corporate Accountability
    • Leading Change and Organizational Renewal
    • Leading with Finance
    • Management Essentials
    • Negotiation Mastery
    • Organizational Leadership
    • Power and Influence for Positive Impact
    • Strategic Financial Analysis
    • Strategy Execution
    • Sustainable Business Strategy
    • Sustainable Investing
    • Transforming Customer Experiences
    • Winning with Digital Platforms
    Subscribe to the Blog
    *
    Please complete this required field.
    Email must be formatted correctly.
    Please complete all required fields.
    RSS feed

    Filters

    Topics

    Topics

    • Accounting
    • Analytics
    • Business Essentials
    • Business in Society
    • Career Development
    • Communication
    • Community
    • ConneXt
    • Decision-Making
    • Digital Transformation
    • Earning Your MBA
    • Entrepreneurship & Innovation
    • Finance
    • Leadership
    • Management
    • Marketing
    • Negotiation
    • News & Events
    • Productivity
    • Staff Spotlight
    • Strategy
    • Student Profiles
    • Technology
    • Work-Life Balance

    Courses

    Courses

    • AI Essentials for Business
    • Alternative Investments
    • Business Analytics
    • Business Strategy
    • Business and Climate Change
    • CLIMB
    • CORe
    • Creating Brand Value
    • Credential of Digital Innovation and Strategy
    • Design Thinking and Innovation
    • Digital Marketing Strategy
    • Disruptive Strategy
    • Dynamic Teaming
    • Economics for Managers
    • Entrepreneurial Marketing
    • Entrepreneurship Essentials
    • Financial Accounting
    • Global Business
    • Launching Tech Ventures
    • Leadership Principles
    • Leadership, Ethics, and Corporate Accountability
    • Leading Change and Organizational Renewal
    • Leading with Finance
    • Management Essentials
    • Negotiation Mastery
    • Organizational Leadership
    • Power and Influence for Positive Impact
    • Strategic Financial Analysis
    • Strategy Execution
    • Sustainable Business Strategy
    • Sustainable Investing
    • Transforming Customer Experiences
    • Winning with Digital Platforms
    Subscribe to the Blog
    *
    Please complete this required field.
    Email must be formatted correctly.
    Please complete all required fields.
    RSS feed

    How to Come Up with an Innovative Business Idea

    Aspiring female entrepreneur researching innovative business ideas on a laptop
    • 21 Jul 2020
    Catherine Cote Author Staff
    tag
    • Disruptive Strategy
    • Entrepreneurship & Innovation
    • Entrepreneurship Essentials
    • Strategy

    Entrepreneurship is the pursuit of opportunity beyond currently controlled resources. By definition, entrepreneurs seek to fill a need in a new way.

    For aspiring entrepreneurs, however, generating strong, novel business ideas can be challenging.

    If you’re interested in being an entrepreneur, brainstorming ways you can satisfy needs and solve problems is a good place to start.

    Remember the golden rule of brainstorming: There are no bad ideas. As your thoughts flow, jot them down so you can later prune the list to focus on your strongest concepts.

    Here are some thought-starters for coming up with innovative business ideas and examples of how entrepreneurs have used them to build successful companies.


    Free E-Book:
    So You Want to Be an Entrepreneur: How to Get Started

    Access your free e-book today.

    DOWNLOAD NOW

    How to Come Up with a Business Idea

    Is There an Easier Way?

    One place to start brainstorming potential business ideas is by asking yourself, “What task can I make easier?”

    A common denominator for successful businesses is their ability to fulfill customer needs. In this case, the need is to create a product or service that makes people’s lives easier.

    Related: How to Identify an Underserved Need in the Market

    The most innovative businesses have flourished from simple ideas. For example, HelloFresh has taught people how to cook and provided tools to prepare meals more efficiently. It started with a need to make meal planning and grocery shopping easier. By preparing meal kits that directly fulfill busy people’s needs, this idea has seen major growth.

    Check out our video on how to come up with innovative business ideas below below, and subscribe to our YouTube channel for more explainer content!

    View Video

    This method of creating a product to fill a need can be viewed through the lens of Harvard Business School Professor Clayton Christensen’s jobs to be done theory, which he presents in the online course Disruptive Strategy.

    “A ‘job to be done’ is a problem or opportunity that somebody is trying to solve,” Christensen says. “We call it a ‘job’ because it needs to be done, and we hire people or products to get jobs done.”

    Look for these kinds of opportunities in your own life. Every “job” presents an opportunity to create an easier way to get it done.

    By centering your business plan on a particular need, you can increase your chances of building a profitable business.

    Related: Jobs to Be Done: 4 Real-World Examples

    Can I Make This More Accessible?

    There are many useful products and services that aren’t readily available to the entire market, creating an opportunity to produce a similar, more accessible product offering.

    The founding of Airbnb by Brian Chesky and Joe Gebbia is an example that HBS Professor William Sahlman uses in the online course Entrepreneurship Essentials.

    “Chesky and Gebbia observed how hard it was to find housing during big local events,” Sahlman explains. “They decided to list online three air beds in their apartment for people coming to San Francisco for a design conference.”

    From there, they added a third member to their founding team, Nathan Blecharczyk, who built the platform for connecting people with spare rooms to travelers needing a place to stay. They called it AirBed and Breakfast, which later became Airbnb.

    Chesky and Gebbia noticed hotel rooms weren’t easy to book during large events, recognized a business opportunity, and devised a solution to fulfill a need for accessible, short-term lodging.

    There are countless industries and companies whose offerings are inaccessible to certain market segments or during specific periods. Consider how you might fill those needs.

    Related: 10 Characteristics of Successful Entrepreneurs

    What Can I Improve About This?

    For every successful product offering, there's a multitude of ways to make it better. Think of companies you admire and imagine how you could improve their products. As you do so, consider the following four factors.

    Graphic showing four factors to consider to improve a product: delivery process, location, cost, and customer experience

    1. Delivery Process

    Your business idea doesn’t have to be entirely new—it just has to fill a need. If you can identify a more convenient way of delivering an existing service, it could be an opportunity for your business.

    Uber is used as an example in Entrepreneurship Essentials. Taxis have existed for decades, but Uber delivered its services in a new, innovative way by linking drivers in their own cars to customers via an app.

    This example also shows there are no limits to what type of business you can create. Your business’ ability to fulfill a need will matter more than whether it’s a brick-and-mortar or online business.

    Related: 3 Effective Methods for Assessing Customer Needs

    2. Location

    One of the simplest improvements to a product or service is bringing it to a new location.

    Returning to the Uber example in Entrepreneurship Essentials, ride-sharing company Didi was founded in China—a location Uber hadn’t yet reached. Didi used a similar platform and model as Uber but filled a location gap Uber had left open.

    What products, services, or concepts have you experienced in other places that you’d like to bring to your community?

    Entrepreneurship Essentials | Succeed in the startup world | Learn More

    3. Cost

    One improvement that can make a significant impact is cost. Determining how to make a high-quality equivalent to a leading product and offer it for a fraction of the price has great potential.

    Home security brand Wyze was founded using this logic. After four ex-Amazon employees discovered they could produce high-quality security cameras and sell them for one-tenth the cost of leading competitors, they sold one million security cameras in their first year as a company.

    It takes testing to ensure product quality isn’t sacrificed for a lower price, but finding a way to reduce the cost of an in-demand item could jumpstart your entrepreneurial journey.

    4. Customer Experience

    Taking an existing offering and improving the customer experience for all or a segment of the market can be a valuable way to fill a need.

    One example of an organization that’s done this well is Wanderful, a platform that, similar to Airbnb, connects travelers to locals who can offer lodging and travel advice—with the provision that all users are women.

    Beth Santos, founder and CEO of Wanderful, noticed that female solo travelers made up 11 percent of the travel industry, which failed to take into consideration the safety, gender norm, and cultural concerns of women traveling alone.

    She improved this experience by creating a network of women that can be tapped into for lodging, travel advice, or just a friendly face in a new location. Wanderful has since expanded its mission to give female and non-binary travelers voices in the travel industry through conferences, communities, and recognition programs.

    If there’s an opportunity to improve the experience of a specific group of people, act on it and see where the opportunity leads.

    Related: 6 Questions to Ask Before Starting a Business

    Is It Time to Pivot?

    When starting a business, you may need to pivot from your original idea as new needs arise in the market.

    For instance, Jebbit, a tech startup that originally offered a platform to pay students for the advertisements they watched, saw a rising need for privacy and consent in the consumer data space. It pivoted to create a platform for secure, declared customer data.

    Another instance in which it makes sense to pivot is during technological evolution.

    In Disruptive Strategy, Christensen explains that technological advancements can be either sustaining or disruptive innovations, depending on how they impact your company.

    Take Netflix: The service was created to allow people to watch movies without going to the video store and accomplished this by mailing DVDs to customers’ homes with prepaid return envelopes.

    When streaming came on the scene in 2007, Netflix implemented the new technology into its business model and has continued to adapt as it’s evolved. Because Netflix was able to adopt new technology to continue serving its customers, streaming was a sustaining innovation.

    In the case of video store Blockbuster, streaming was a disruptive innovation that it tried but couldn’t affordably adopt. It ultimately led the business to shut down.

    When technological advancements arise, think of how your current business model could shift to use innovation as a sustaining force.

    More Examples of Innovative Business Ideas

    As you think of ideas for businesses, take inspiration from the world around you. Analyze the foundational needs other businesses have fulfilled for society and how they’ve adapted to what customers want.

    Remember: As a future business owner, it’s critical to understand your company’s core mission. Focusing on that can help align your startup ideas and provide a greater chance for success.

    To gain even more insight and inspiration, consider the following examples, which show how diverse your business model and mission can be.

    Notarize

    Notarize, the first online platform for legally signing and notarizing documents is just one example of an online startup that discovered an overlooked need. For many, it’s a hassle to find a notary public to sign a document in person. This prompted Pat Kinsel, founder and CEO of Notarize, to make this difficult, but necessary, task more convenient.

    "It really struck me that notarized documents are often some of the most important things people sign, and yet, we have this system that’s 100 years old," Kinsel said in an interview with Inc.

    Kinsel designed the Notarize app to connect people to licensed notary publics via video chat so they can see their documents signed in real time.

    This need for notarized documents seemed to be a common, but overlooked, need for many professionals. By thinking outside the box, Notarize seized a business opportunity and brought it to its fullest potential.

    Starbucks

    The development of Starbucks under former chairman and CEO Howard Schultz is another example that highlights how to efficiently choose locations for your brick-and-mortar.

    “Schultz admired the sidewalk coffee shops he’d visited in Italy and decided he would introduce the same basic idea in the United States,” Sahlman says in Entrepreneurship Essentials. “That venture became Starbucks.”

    Now, it’s rare to walk a few blocks without seeing a Starbucks on a corner. Strategic locations within high traffic routes created a customer base that’s made Starbucks an essential part of their lives.

    Amazon

    Perhaps one of the most well-known companies in the world, Amazon is a prime example of fulfilling people’s need for convenience.

    This e-commerce business made it the norm to buy items online—including books, music, movies, housewares, and electronics—and have them quickly and conveniently delivered.

    Which HBS Online Entrepreneurship and Innovation Course is Right for You? | Download Your Free Flowchart

    Think Like an Entrepreneur

    Coming up with an innovative business idea isn’t difficult if you’re observant. By asking yourself key brainstorming questions, you can generate a list of business ideas that fill market needs, improve existing products, and make daily life easier and more enjoyable.

    Do you want to turn an idea into a viable venture? Explore our four-week Entrepreneurship Essentials course, six-week Disruptive Strategy course, and other online entrepreneurship and innovation courses to discover how you can harness the power of innovation. Download our free course flowchart to determine which best aligns with your goals.

    This post was updated on September 19, 2022. It was originally published on July 21, 2020.

    About the Author

    Catherine Cote is a marketing coordinator at Harvard Business School Online. Prior to joining HBS Online, she worked at an early-stage SaaS startup where she found her passion for writing content, and at a digital consulting agency, where she specialized in SEO. Catherine holds a B.A. from Holy Cross, where she studied psychology, education, and Mandarin Chinese. When not at work, you can find her hiking, performing or watching theatre, or hunting for the best burger in Boston.
     
    All FAQs

    Top FAQs

    How are HBS Online courses delivered?

    +–

    We offer self-paced programs (with weekly deadlines) on the HBS Online course platform.

    Our platform features short, highly produced videos of HBS faculty and guest business experts, interactive graphs and exercises, cold calls to keep you engaged, and opportunities to contribute to a vibrant online community.

    Are HBS Online programs available in languages other than English?

    +–

    We expect to offer our courses in additional languages in the future but, at this time, HBS Online can only be provided in English.

    All course content is delivered in written English. Closed captioning in English is available for all videos. There are no live interactions during the course that requires the learner to speak English. Coursework must be completed in English.

    Do I need to come to campus to participate in HBS Online programs?

    +–

    No, all of our programs are 100 percent online, and available to participants regardless of their location.

    How do I enroll in a course?

    +–

    Certificate Programs

    HBS Online welcomes committed learners wherever they are—in the world and their careers—irrespective of their professional experience or academic background. To extend the reach of HBS Online, we no longer require an application for our certificate programs. (Applications are still required for our credential programs: CORe and CLIMB.) You can now immediately enroll and start taking the next step in your career.

    All programs require the completion of a brief online enrollment form before payment. If you are new to HBS Online, you will be required to set up an account before enrolling in the program of your choice.

    Our easy online enrollment form is free, and no special documentation is required. All participants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program.

    Updates to your enrollment status will be shown on your account page. HBS Online does not use race, gender, ethnicity, or any protected class as criteria for enrollment for any HBS Online program.

    Credential Programs

    HBS Online's CORe and CLIMB programs require the completion of a brief application. The applications vary slightly, but all ask for some personal background information. You can apply for and enroll in programs here. If you are new to HBS Online, you will be required to set up an account before starting an application for the program of your choice.

    Our easy online application is free, and no special documentation is required. All participants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program.

    Updates to your application and enrollment status will be shown on your account page. We confirm enrollment eligibility within one week of your application for CORe and three weeks for CLIMB. HBS Online does not use race, gender, ethnicity, or any protected class as criteria for admissions for any HBS Online program.

    Does Harvard Business School Online offer an online MBA?

    +–

    No, Harvard Business School Online offers business certificate programs.

    What are my payment options?

    +–

    We accept payments via credit card, wire transfer, Western Union, and (when available) bank loan. Some candidates may qualify for scholarships or financial aid, which will be credited against the Program Fee once eligibility is determined. Please refer to the Payment & Financial Aid page for further information.

    We also allow you to split your payment across 2 separate credit card transactions or send a payment link email to another person on your behalf. If splitting your payment into 2 transactions, a minimum payment of $350 is required for the first transaction.

    In all cases, net Program Fees must be paid in full (in US Dollars) to complete registration.

    What are the policies for refunds and deferrals?

    +–

    After enrolling in a program, you may request a withdrawal with refund (minus a $100 nonrefundable enrollment fee) up until 24 hours after the start of your program. Please review the Program Policies page for more details on refunds and deferrals. If your employer has contracted with HBS Online for participation in a program, or if you elect to enroll in the undergraduate credit option of the Credential of Readiness (CORe) program, note that policies for these options may differ.

     

    Sign up for News & Announcements


    • • Please complete this required field.
    • • Email must be formatted correctly.
    • • Please complete all required fields.

    Subject Areas

    • Business Essentials
    • Leadership & Management
    • Entrepreneurship & Innovation
    • Strategy
    • Marketing
    • Finance & Accounting
    • Business & Society
    • Digital Transformation

    Quick Links

    • FAQs
    • Contact Us
    • Request Info
    • Enroll Now
    • Support Portal

    About

    • About Us
    • Media Coverage
    • Founding Donors
    • Leadership Team
    • Careers @ HBS Online

    Legal

    • Legal
    • Policies
    Harvard Business School
    Copyright © President & Fellows of Harvard College
    • Site Map
    • Trademark Notice
    • Digital Accessibility