......You know you want to start a business, but what do you do next? Here's how to find the perfect idea for your business.
Many people believe starting a business is a mysterious process. They
know they want to start a business, but they don't know the first steps
to take. In this chapter, you're going to find out how to get an idea
for a business--how you figure out exactly what it is you want to do and
then how to take action on it.
But before we get started, let's clear up one point: People always
wonder if this is a good time to start their business idea. The fact is,
there's really never a bad time to launch a business. It's obvious why
it's smart to launch in strong economic times. People have money and are
looking for ways to spend it. But launching in tough or uncertain
economic times can be just as smart. If you do your homework, presumably
there's a need for the business you're starting. Because many people
are reluctant to launch in tough times, your new business has a better
chance of getting noticed. And, depending on your idea, in a down
economy there is often equipment (or even entire businesses!) for sale
at bargain prices.
Estimates vary, but generally more than 600,000 businesses are
started each year in the United States. Yet for every American who
actually starts a business, there are likely millions more who begin
each year saying "OK, this is the year I am going to start a business,"
and then don't.
Everyone has his or her own roadblock, something that prevents them
from taking that crucial first step. Most people are afraid to start;
they may fear the unknown or failure, or even success. Others find
starting something overwhelming in the mistaken belief they have to
start from scratch. They think they have to come up with something that
no one has ever done before--a new invention, a unique service. In other
words, they think they have to reinvent the wheel.
But unless you're a technological genius--another Bill Gates or Steve
Jobs--trying to reinvent the wheel is a big waste of time. For most
people starting a business,
the issue should not be coming up with something so unique that no one
has ever heard of it but instead answering the questions: "How can I
improve on this?" or "Can I do this better or differently from the other
guy doing it over there?" Or simply, "Is there market share not being
served that makes room for another business in this category?"
Get the Juices Flowing
How do you start the idea process? First, take out a sheet of paper and
across the top write "Things About Me." List five to seven things about
yourself--things you like to do or that you're really good at, personal
things (we'll get to your work life in a minute). Your list might
include: "I'm really good with people, I love kids, I love to read, I
love computers, I love numbers, I'm good at coming up with marketing
concepts, I'm a problem solver." Just write down whatever comes to your
mind; it doesn't need to make sense. Once you have your list, number the
items down one side of the paper.
On the other side of the paper, list things that you don't think
you're good at or you don't like to do. Maybe you're really good at
marketing concepts, but you don't like to meet people or you're really
not that fond of kids or you don't like to do public speaking or you
don't want to travel. Don't overthink it; just write down your thoughts.
When you're finished, ask yourself: "If there were three to five
products or services that would make my personal life better, what would
they be?" This is your personal life as a man, woman, father, husband,
mother, wife, parent, grandparent--whatever your situation may be.
Determine what products or services would make your life easier or
happier, make you more productive or efficient, or simply give you more
time.
Next, ask yourself the same question about your business life.
Examine what you like and dislike about your work life as well as what
traits people like and dislike about you. Finally, ask yourself why
you're seeking to start a business in the first place. Then, when you're
done, look for a pattern to emerge (i.e., whether there's a need for a
business doing one of the things you like or are good at).
They Delivered
Here's a business startup story that's a great example of seeing a need and filling it. Entrepreneur
magazine is located in Irvine, California, a planned community. Many
years ago, there weren't many fast-food restaurants in the business
area. Most were across town, where the neighborhoods were. Two young men
in Irvine found this lunch situation very frustrating. There weren't
many affordable choices. Sure, there were some food courts located in
strip centers, but the parking lots were really small and the wait was
horrendous.
One day, as they were lamenting their lunch problem, one of them
said, "Wouldn't it be great if we could get some good food delivered?"
The proverbial light bulb went on! Then they did what many people don't
do--they did something about their idea. Coincidentally, they purchased
one of Entrepreneur's business startup guides and started a restaurant delivery business.
To date, their business has served more than 15 million people! It's
neither a complicated business nor an original one. Their competition
has gotten stiffer, and yet they're doing phenomenally well. And it all
began because they listened to their own frustrations and decided to do
something about them. Little did they know that research cites the
shrinking lunch hour as one of the biggest complaints by American
workers. Some only get 30 minutes, making it nearly impossible to get
out, get lunch and get back on time. So while these young entrepreneurs
initially thought they were responding to a personal need in their local
area, they actually struck a universal chord.
That is one way to get ideas--listening to your own (or your
co-workers', family's or neighbors') frustrations. The opportunities are
all there; you just need to search them out. If your brain is always
set in idea mode, then many ideas may come from just looking around or
reading. For instance, if you had read an article about the shrinking
lunch hour, and if you were thinking entrepreneurially, you would say
"Wow, maybe there's an opportunity there for me to do something. I
should start researching it."
Inspiring Moments
Inspiration can be anywhere. Here's another classic startup story: Ever
get charged a fee for returning a video late? Bet you didn't do anything
about it. Well, when Reed Hastings got a whopping $40 late charge,
instead of getting mad, he got inspired. Hastings wondered "How come
movie rentals don't work like a health club, where, whether you use it a
lot or a little, you get charged the same?" From this thought,
Netflix.com, an online DVD rental service, was born. From its start in
1999, Netflix has grown into a big business with revenues topping $1.3
billion.
Getting an idea can be as simple as keeping your eyes peeled for the
latest hot businesses; they crop up all the time. Many local
entrepreneurs made tons of money bringing the Starbucks coffeehouse
concept to their hometowns and then expanding from there. Take
Minneapolis-based Caribou Coffee. The founders had what they describe as
an "aha moment" in 1990, and two years later launched what is now the
nation's second-largest company-owned gourmet coffeehouse chain. Other
coffee entrepreneurs have chosen to stay local.
And don't overlook the tried and true. Hot businesses often go
through cycles. Take gardening. For the last few years gardening
products and supplies have been all the rage, but you wouldn't consider
gardening a 21st century business.
In other words, you can take any idea and customize it to the times
and your community. Add your own creativity to any concept. In fact,
customizing a concept isn't a choice; it's a necessity if you want your
business to be successful. You can't just take an idea, plop it down and
say "OK, this is it." Outside of a McDonald's, Subway or other major
franchise concept, there are very few businesses that work with a
one-size-fits-all approach.
One of the best ways to determine whether your idea will succeed in
your community is to talk to people you know. If it's a business idea,
talk to co-workers and colleagues. Run personal ideas by your family or
neighbors. Don't be afraid of people stealing your idea. It's just not
likely. Just discuss the general concept; you don't need to spill all
the details.
Just Do It!
Hopefully by now, the process of determining what business is right for
you has at least been somewhat demystified. Understand that business
startup isn't rocket science. No, it isn't easy to begin a business, but
it's not as complicated or as scary as many people think, either. It's a
step-by-step, common-sense procedure. So take it a step at a time.
First step: Figure out what you want to do. Once you have the idea, talk
to people to find out what they think. Ask "Would you buy and/or use
this, and how much would you pay?"
Understand that many people around you won't encourage you (some will
even discourage you) to pursue your entrepreneurial journey. Some will
tell you they have your best interests at heart; they just want you to
see the reality of the situation. Some will envy your courage; others
will resent you for having the guts to actually do something. You can't
allow these naysayers to dissuade you, to stop your journey before it
even begins.
In fact, once you get an idea for a business, what's the most
important trait you need as an entrepreneur? Perseverance. When you set
out to launch your business, you'll be told "no" more times than you've
ever been told before. You can't take it personally; you've got to get
beyond the "no" and move on to the next person--because eventually,
you're going to get to a "yes."
One of the most common warnings you'll hear is about the risk.
Everyone will tell you it's risky to start your own business. Sure,
starting a business is risky, but what in life isn't? Plus, there's a
difference between foolish risks and calculated ones. If you carefully
consider what you're doing, get help when you need it, and never stop
asking questions, you can mitigate your risk.
You can't allow the specter of risk to stop you from going forward.
Ask yourself "What am I really risking?" And assess the risk. What are
you giving up? What will you lose if things don't work out? Don't risk
what you can't afford. Don't risk your home, your family or your health.
Ask yourself "If this doesn't work, will I be worse off than I am now?"
If all you have to lose is some time, energy and money, then the risk
is likely worth it.
Determining what you want to do is only the first step. You've still
got a lot of homework to do, a lot of research in front of you. Buying
this book is a smart first step. Most important: Do something. Don't sit
back year after year and say "This is the year I'm going to start my
business." Make this the year you really do it!
WORK ON THESE TIPS NOW!!!!
JUST GET PREPARED!!!
