Q: I really want to start my own business, but I have
no idea what business would be best suited for me. I'm also
eager to get started, but I don't want to pick the wrong business
just because I'm impatient. How should I go about deciding
what business would be best for me? - Samuel J.
A: Before I answer your question, Samuel, I want you
to reach around and pat yourself on the back for not letting
your eagerness push you into making a wrong decision. All
too often we entrepreneurs tend to let our impatience drive
us to make decisions that we later regret. In business such
haste can be very costly, indeed.
I always compare starting a business to jumping into a pool
of freezing water. There are typically two types of entrepreneurs
who take the plunge.
The first are the "Toe Testers." These are those
cautious folks who just stick their big toe in the pool to
gauge the temperature of the water. It is for these careful
entrepreneurs that the phrase "testing the waters"
was coined. Toe Testers enter the business pool slowly, a
little bit at a time. The lesson to be learned from Toe Testers
is to start slowly and don't feel like you have to wade in
too fast. Ease into the business pool gradually to make sure
it's right for you. Remember, many entrepreneurs realize that
the business world is not right for them only after they are
in it up to their necks. And that's when the term "sink
or swim" takes on a whole new meaning.
The next type of entrepreneur is the "High Diver."
These are those fearless souls who climb the ladder and dive
into the business pool head first without worrying about the
depth of the water or the dangers that lurk beneath the surface.
It is for these entrepreneurs that the phrase "damn the
torpedoes, full speed ahead" was coined. Quite often
these entrepreneurial daredevils find themselves drowning
in unknown waters or end up with their heads buried in the
bottom of the pool.
Both types of entrepreneurs may find success, depending on
how well equipped they are to handle the water they are diving
into. Here are a few ideas to help better prepare you for
the plunge.
Let your experience be your guide. Start with what you
know. If you have spent twenty years working as an accountant
or you love to build wooden toy trains as a hobby, consider
how you can take that experience and turn it into a successful
business. You might also find a great business idea right
under your nose. Look around your workplace. Do you see
needs that are going unmet or can you think of a better
way of doing something? If so, you might have the seed for
a profitable business.
Do what you love and enjoy what you do. I can't emphasize
this enough. Many people start a business for the wrong
reason: to get rich. While it is true that many millionaires
in this country made their fortunes from their own business
ventures, that should not be your sole motivation for starting
a business. If you don't enjoy what you do, you will not
be successful, at least not from a mental point of view.
Sure, the monetary rewards can be tremendous, but the mental
anguish of working in a business you don't enjoy is a high
price to pay. I talk to entrepreneurs all the time who are
running successful businesses, but are so unhappy as a result
that they literally make themselves sick. If you don't enjoy
what you do the business will become a chore, not a joy.
Don't reinvent the wheel, just make it better. Many first
time entrepreneurs assume that they have to come up with
a new business idea to be successful. That simply is not
true. Most successful businesses are born not of innovation,
but of necessity. Instead of trying to come up with an idea
that changes the world, take a look at the world around
you and see where there might be a void that needs filling
or a business concept that needs improvement.
Many successful businesses have been built by taking a traditional
business and making it better. Domino's Pizza was certainly
not the first to offer home delivery of pizza, but they
were the first to guarantee it would be delivered piping
hot to your door in 30 minutes or less. Amazon.com was not
the first company to sell books, but they were one of the
first that would let you buy books from the comfort of your
own home while sitting in your underwear.
Focus on a niche. Many businesses have gone broke trying
to be all things to all people. The ability to offer a gazillion
products under one roof is all well and good for Wal-Mart,
but not for most new small businesses. Try to identify a
niche that you would enjoy working in and think about starting
a business therein. If you love to work outdoors, consider
starting a landscaping business. If you enjoy working with
numbers, think about becoming an accountant or CPA. When's
the last time you had your gardener do your taxes? You get
the idea. Focus on a niche and become an expert in your
field.
A franchise might be an option. Many new entrepreneurs
consider buying a franchise operation instead of starting
a business from scratch. Franchises are a good way to jumpstart
the process because they have already done much of the hard
work for you. They have proven the business model, established
guidelines for running the business, spent millions of dollars
on establishing the brand, etc. Buying a franchise is typically
a very expensive and involved process that is beyond the
scope of this article. The best thumbnail of advice I can
give you is to thoroughly investigate the franchisor and
the opportunity, use your own attorney to do the deal, and
read the fine print in the franchise agreement.
It's hard to swim in a crowded pool. If the business
pool is already filled with other companies doing the same
thing you want do, chances are you will fail in the face
of established competition. To succeed in such a crowded
pool you will have to do something to stand out from the
crowd (and I don't mean greeting customers while wearing
a bright red Speedo). If you can't quickly and easily differentiate
yourself from a large group of competitors, you're better
off choosing another business.
Above all, take your time. Whatever business you choose
to start, I encourage you to take the time required to make
an informed, intelligent decision. Think about starting
part time while you still have your current job (and income)
to fall back on. Talk to friends and associates who use
the product or service you will provide to see if they would
consider become paying customers.
Remember, in business you can end up swimming in success
or sinking in failure. The key to your success might just
lie in the sensitivity of your big toe.
