Profitable Business Idea: How to Identify a Viable Business Idea in Uganda (2023)

Profitable Business Idea: How to Identify a Viable Business Idea in Uganda (1)

Many people in Uganda, especially the youth, are constantly searching the internet forprofitable business ideas. The post I wrote on low-cost home businesses in Uganda with 50 business ideas receives many visits every day. Most of the people who read this blog post are Ugandan youth. It is an indication that these young people are hungry for great ideas to start their businesses.

Some of these youth have expressed their appreciation for the information I provided by way of comments, which comments appear in the comments section of that blog post. Others have even personally come to me for support. I feel I should support, and indeed, I will provide our blog readers with some knowledge I have gained over the years through doing many different activities, business inclusive.

Some people who come to me also ask me questions like this: “I have 500,000 Ugandan Shillings. Which business can I start?” For sure, many times, I find myself stuck to providing an answer to that question. Do you know why? It’s because I cannot generate a profitable business idea for everyone. It’s so hard. I can only provide you with information and knowledge that you can use to come up with a prosperous business idea.

(Video) 6 profitable business ideas in uganda - 2022

I have, therefore, discovered that generating a profitable business idea is not as easy as it may sound. And if it’s one of the hindrances deterring you from starting a business, then this article is an excellent gift.

But first, let me reflect on some of the mistakes most people make that stop them from generating a viable business idea.

What Will Stop You from Generating a Profitable Business Idea?

#1 – Thinking Money First

Profitable Business Idea: How to Identify a Viable Business Idea in Uganda (2)

Profitable Business Idea

The first mistake is to consider money first before coming up with a business idea. This way, you are doing things in the opposite direction. Think of business ideas first, then money second. What I mean is that you should never start by looking for the money first, to start a business you don’t know yet, because what will happen is that you will begin asking others to tell you which business to start. That’s completely wrong and not a proven way of venturing into business.

The truth is that nobody knows the business you can start. Of course, a person can tell you to do business A or B. But has that person evaluated the profitability of that business vis-à-vis your potential to do it successfully? Even if he knows, has he established whether the amount of money you have is all that you will need to start it? All those are areas of reflection.

From experience, I have discovered that most people make this great mistake. For instance, many people retire from public service or formal employment with significant sums of money or terminal benefits or accumulated NSSF savings. They think that since they have funds (capital), they can run a particular business. In no time, their hard-earned money disappears, leaving them helpless.

My advice on this is that start by having an idea of the kind of business you want to do. My advice is to start with a vision of the kind of business you want to do. Don’t worry about the money as long as your business idea is viable. People with no money have started and built businesses worth billions. They wouldn’t if they began by thinking about money first.

#2 – Starting a Business Without a Plan

However viable your business idea may be, it may become unsuccessful if you work without a business plan. Most Ugandans start businesses without abusiness plan. As a result, they venture into business blindly through trial and error. That’s a huge mistake.

(Video) 10 profitable business ideas in uganda. #businessideas #uganda

Here is the correct order, please

  • Have your profitable business idea first.
  • Then develop a business plan for it. Important!
  • Look for the resources (money, skills, knowledge, etc.) to make your business idea a reality.

After coming up with a business plan, you will realise that you need more money than anticipated. That shouldn’t scare you because building a business is like building a house. It will become much easier if you consider implementing your business idea step by step. And that’s one of the benefits of working with a business plan.

Secondly, the plan allows you to focus your entire mind on making your business idea successful. It enhances your enthusiasm and ability to visualise for your business to succeed. Read further on how to build asuccessful business.

#3 – Starting Big and Not small

If you have never done business before, it’s good to start small and grow big. Most Ugandans try to jump too “big” too soon, expecting to make quick returns. That’s a big mistake.

What I have noticed is that great things always start small. When you start your business, it’s good to execute on a smaller scale consistently. When I look into my own life, I see that some of the most significant achievements I’ve made started as small projects, i.e. acquiring an education, building a house, starting a business, etc.

Starting small enables you to go through the learning experience without wasting your valuable resources. For instance, we conceived the idea of venturing into alaser engraving businessway back in 2008. We did our research and developed a business plan immediately. We worked on implementing our strategy slowly by acquiring the skills and resources we needed to run the engraving business.

How Do You Then Identify a Profitable Business Idea?

Let us now get to the essence of this article, having thrown more light on some of the mistakes you should avoid in starting a business.

(Video) business ideas in uganda - 10 profitable business ideas in uganda. #businessideas #uganda

Our concern today is how to get a profitable business idea or opportunity.

Okay, let us get started.

#1 – Find a Solution to a Problem

You generate a profitable business idea by finding a solution to a problem. Note the two words I have underlined: problem and solution. If you look around you and see the things others complain about, pay attention to them. Don’t stop there, right? Dig deep and, if possible, research them to find out about the solutions you can have to those problems.

What does it mean? If you come up with an idea or someone presents a plan for you, the first thing you should ask yourself is: what problem does it solve?

Let me illustrate this by way of an example. And let me use an example every Ugandan living in Kampala may know well, and this is the Safe Boda business. In my observation, I think the people behind this business concept developed it after identifying some of the problems Ugandans face by using boda-boda (motorcycle) means of transport.

Reckless riding, not following traffic regulations and criminals hiding in this transport sector are some of the problems people face. Because of that, most passengers have lost their lives while others are languishing in hospitals with broken limbs.

The introduction of Safe Boda, Taxify and several others are some of the solutions to those problems. Because people saw Safe Boda as a solution to the challenges, they resorted to using this organised means of transport. And I think this is aprofitable business ideaand an excellent example of how to develop a viable business idea.

(Video) Top 10 Business Ideas to start in Uganda this 2022 with Minimum Capital, business ideas in Uganda

So to develop a profitable business idea, focus first on identifying the problems in your environment and list them down.

#2 – People’s Willingness to Pay to Solve their Problems

The second step is to research and find out whether people are willing to pay to solve that problem. You can find a solution to a problem, but if people aren’t willing to pay to solve the problem, then that business idea won’t be profitable for you.

How do you find out people’s willingness to pay to solve the problem?

It’s simple. Just find out if there is any competition. Is there a business offering products or services related to what you intend to provide?

Profitable Business Idea: How to Identify a Viable Business Idea in Uganda (5)

Overloading Boda Boda

Using theSafe Boda business, you can see so many Boda Boda cyclists, and most people in Uganda prefer this means of transport because it’s faster. So theSafe Boda businessis a profitable business idea because there is already a sign that people are already paying for it.

#3 – The Market Size

After establishing people’s willingness to pay for your product or service, you now look at the market size. A business idea whose market size is small isn’t a profitable business idea because your business survives on the size of your target market.

Conclusion

Generating a profitable business idea is a process. You don’t jump into a business before analysing it. But most people in Uganda, because they have money, jump into any business blindly and end up disappointed. The best practice is to weigh the profitability and viability of your business idea by going through the steps I have hinted at above. If you think this blog information has been helpful, let me hear what is on your mind through the comment section below.

(Video) Top 10 Cheapest & Easiest Business Ideas to start in Uganda this 2021, business ideas in Uganda

FAQs

How do you identify a good business idea? ›

3 Ways to Identify Business Opportunities
  1. Identify Your Pain Points. When searching for potential market needs, start with yourself. ...
  2. Conduct Market Research. Another way to prove whether a business idea is viable is by conducting market research. ...
  3. Question Processes.
5 Apr 2022

How do you know if a business idea is profitable? ›

The definition of profitability in accounting is when a company's total income is more than its total expenses. This number is called net profit, or income minus expenses, according to Iowa State University. Income is the total revenue a company generates.

How do you find profitable ideas? ›

Here are four places I look first when I want to come up with a new business idea quickly:
  1. Things you're already good at (hobbies/skills). Everybody has SOMETHING that they're good at. ...
  2. Things you've done for work. ...
  3. Things people ask you for. ...
  4. Things you want to learn.
22 May 2017

What are the best business ideas in Uganda? ›

Other services: The sale of goods is not the only thing you can do in Uganda, there are other services you could render instead of looking for what to sell. Such services include mobile phone repair, hair styling and dressing, barbing, furniture making, tractor leasing, are rental, and many more.

How do I know if my idea is viable? ›

10 Ways to Determine The Viability of Your Business Idea
  1. Hone in on a Business Problem. ...
  2. Consult Those Who Will be Candid with You. ...
  3. Competition. ...
  4. Results of Others. ...
  5. Talking to Potential Customers. ...
  6. Access to Resources. ...
  7. Business Model. ...
  8. Access to Capital.
25 Aug 2018

How can you determine the viability of a business? ›

To evaluate market viability, you need to consider these three factors:
  1. Market size: Is the market large enough to accommodate new sellers? Is there room for growth?
  2. Target audience: Do potential customers have a discretionary income? ...
  3. Competition: Who are the most important retailers in this market?
21 Jan 2020

What are most profitable business ideas? ›

Top 10 Most Successful Small Business Ideas:
  • Tuition/ Coaching Classes: What was your favorite subject in school? ...
  • Event/ Wedding Planner: Weddings never go out of fashion. ...
  • Cooking Classes: ...
  • Driving School/ Cab Service: ...
  • Food Catering Business: ...
  • Fitness Centres: ...
  • Computer Training Center:
6 Jun 2022

What are the 5 most profitable businesses? ›

Most Profitable Business Ideas
  1. Business Consulting. If you're an expert in your industry and have been working at it for years, you should consider consulting. ...
  2. IT Support, Technology Consulting, and Repair. ...
  3. Cleaning Services. ...
  4. Accounting and Tax Preparation. ...
  5. Auto Repair. ...
  6. Real Estate.

What kind of business is profitable in Uganda? ›

Dairy Farming

Dairy farming is a lucrative business in Uganda due to the high demand for dairy products. Therefore start your dairy farming business with cows as well as goats and sell the milk.

Which business is best for beginners? ›

Best Small Business Ideas
  1. Handyman. Image Source. ...
  2. Woodworker. ...
  3. Online Dating Consultant. ...
  4. Sewing and Alteration Specialist. ...
  5. Freelance Developer. ...
  6. Personal Trainer. ...
  7. Freelance Graphic Designer. ...
  8. Life/ Career Coach.
21 Oct 2022

What are the 4 steps for idea validation? ›

How to validate an idea
  1. Define your goal. Just like any idea management-related activity, validation starts with defining your goals. ...
  2. Develop a hypothesis. After you've defined your goal for idea validation, it's time to develop a hypothesis based on that goal. ...
  3. Experiment and revise. ...
  4. Validate and develop.
21 Feb 2019

What are the 4 types of viable business? ›

Most often, the types of entrepreneurship are broken into four categories:
  • small business.
  • scalable startups.
  • large company or intrapreneurship.
  • social entrepreneurship.
7 Apr 2022

What are 5 key things to running a successful business? ›

  • Get Organized. To achieve business success you need to be organized. ...
  • Keep Detailed Records. All successful businesses keep detailed records. ...
  • Analyze Your Competition. Competition breeds the best results. ...
  • Understand the Risks and Rewards. ...
  • Be Creative. ...
  • Stay Focused. ...
  • Prepare to Make Sacrifices. ...
  • Provide Great Service.

What are 5 important factors when starting a business? ›

Well, there are some important factors to bear in mind when launching a business.
  • A great idea. “No business can develop in the absence of a great idea. ...
  • Funding and budget. ...
  • What is your business plan? ...
  • Legal documentation. ...
  • Passion. ...
  • Find the right equipment. ...
  • Know when you need help.

What are 6 steps to developing a business idea? ›

Here are six key steps that can lead to an effective plan for your business:
  1. Step 1: Establish your mission. In essence, your mission statement explains why your business exists. ...
  2. Step 2: Analyse your SWOT. ...
  3. Step 3: Develop a plan. ...
  4. Step 4: Create a budget. ...
  5. Step 5: Put it in writing. ...
  6. Step 6: Make it a living document.

What is a viable business and example? ›

A viable business

When we use the term to describe a company, it means that it is able to survive and succeed. In other words, the business continues making a profit year after year – it is profitable. It is a going concern. When a company has more money coming in than going out, it is making a profit.

What businesses are in high demand right now? ›

If you're ready to take on entrepreneurship but don't know where to start, here are 14 business ideas to consider.
  • Social Media Consulting. ...
  • Senior Care Services. ...
  • Smart Product Development. ...
  • Organic Beauty Products. ...
  • Healthy Fast Food. ...
  • Healthcare Consulting. ...
  • Crowdfunding Consulting. ...
  • Wheelchair Repair.

Which kind of business will grow in future? ›

However, among all these businesses, some of the best future businesses in India are as follows.
  • Cloud Kitchen.
  • Digital Marketing Agency.
  • Investment Business.
  • Courier Service.
  • Outsourcing Business.
  • Internet of Things (IoT) Business.
  • Biometric Sensor Locks.
  • Broadband Business.

What is a good business to start in 2022? ›

Best small business ideas to start in 2022
  • Start a dropshipping business.
  • Design and sell print-on-demand t-shirts.
  • Launch your own book.
  • Create digital products or online courses.
  • Sell print-on-demand posters, greeting cards, and prints.
  • Start a charitable business.
  • Sell a service.
  • Create an online fashion boutique.
3 Jun 2022

What businesses are growing fast? ›

The 10 Fastest Growing Industries in the US
  • Oil Drilling & Gas Extraction in the US. 87.0%
  • Cruise & Travel Agency Franchises. 76.4%
  • Wedding Planners. 75.5%
  • International Airlines in the US. 64.0%
  • Travel Insurance. 62.1%
  • Tour Operators in the US. 57.1%
  • Hotels & Motels in the US. 56.6%
  • Sightseeing Transportation in the US. 48.3%

What are the top 10 most successful businesses? ›

Top 10 most successful businesses to start
  • Social media management. ...
  • Cleaning service. ...
  • Business consulting. ...
  • Copywriting. ...
  • Graphic design. ...
  • Real estate brokers. ...
  • Online courses. ...
  • Pet services. For those who love our furry friends, starting a pet service business may sound like a dream job.
4 Mar 2022

Which business made the most profit? ›

In fiscal year 2020, Apple posted the highest net revenue of any company in the world, with profits of 57.4 billion U.S. dollars.
...
Leading companies in the world in 2020, by net income (in billion U.S. dollars)
CharacteristicNet income in billion U.S. dollars
--
12 more rows
5 Aug 2022

What are 10 small businesses? ›

Top 10 Startup and Small Business Ideas to Try in 2022
  • Cleaning service. Consider starting a cleaning business if you don't mind doing the dirty work others cannot do for themselves. ...
  • Freelance Writing Business. ...
  • Amazon Kindle Publishing. ...
  • Daycare. ...
  • Pet Grooming. ...
  • Aerial Photography. ...
  • Build and Sell Themes Online. ...
  • Blogging.
17 Nov 2022

What are some unique business ideas? ›

17 unique small business ideas for first-time entrepreneurs
  • Be the head chef of your own food truck. ...
  • Become a virtual interior designer and sell home decor products. ...
  • Start a dog-walking and pet-sitting business. ...
  • Become a virtual teacher and sell memberships to an online course.
17 Oct 2022

What business can I start with 10million in Uganda? ›

Back to the business ideas you can start with small capital in Uganda, here you go, and hopefully you find one that suits you.
  • Chicken farming. ...
  • Motorcycle bodaboda business. ...
  • Small shop in your area. ...
  • Selling second hand clothes.
8 Dec 2020

Which is the simplest business? ›

A sole proprietorship is the simplest form of business. A sole proprietor allows an individual to operate as a business and report their profits as personal income. Sole proprietorships provide an advantage in terms of simplicity, but expose the assets of an individual, including private ones, to liability.

What is a successful small business? ›

Successful small businesses are customer-focused, which means they understand the needs of their current customer bases. Satisfied customers can drive profits through repeat business and referrals.

How do I get ideas for a product? ›

17 places to find product ideas
  1. Start with what you have.
  2. Pay attention to trends in your local community.
  3. Consult online consumer trend publications.
  4. Get inspired by industry leaders.
  5. Use product trend discovery sites.
  6. Take a look at social curation sites.
  7. Peruse B2B wholesale marketplaces.
  8. Browse online consumer marketplaces.
26 Jan 2022

What is the most profitable item? ›

Which products are profitable to sell online?
  • Jewelry.
  • Beauty Products.
  • Bamboo Toothbrushes.
  • Sunglasses.
  • Watches.
  • Women's Apparel.
  • Fitness Equipment.
  • Yoga Leggings.
27 Oct 2022

What are the unique business ideas? ›

Here are ten ideas worth giving a go in 2022.
  • Cleaning service. Consider starting a cleaning business if you don't mind doing the dirty work others cannot do for themselves. ...
  • Freelance Writing Business. ...
  • Amazon Kindle Publishing. ...
  • Daycare. ...
  • Pet Grooming. ...
  • Aerial Photography. ...
  • Build and Sell Themes Online. ...
  • Blogging.
17 Nov 2022

What are people buying 2022? ›

Luckily, we have done the research for you. This article will list the 35 top trending products for 2022, categorized by niche.
...
Top Trending Gadget Items
  • Phone Straps. Average selling price: $10. ...
  • Power Banks. Average selling price: $20-$40. ...
  • Phone Holders. ...
  • Mouse Pads. ...
  • Car Chargers.

What is the most bought item? ›

The most sold item in the world is clothing and fashion items. This ranges from women and men's outfits to children's clothing, shoes, accessories, and more.

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