Hot . . . Or Not?
Is that "hot" start-up concept all it's cracked up to be? How to test your idea and start the business that's right for you
URL:
http://www.entrepreneur.com/magazine/entrepreneursstartupsmagazine/2000/december/34210.html
If you've ever felt that you have the ideas but not the
skills, backing or know-how to make things happen, you know what
the search for the perfect start-up is like. You think you've
found a promising idea. You can just see that business running
along successfully, with plenty of orders rolling in.
But then you try to get started. And it's like putting on a
sweater and getting your head caught in the arm hole. You're
thrashing about, going nowhere. You can't get in—or
out.
And that's my point. I've seen too many entrepreneurs
get hogtied like this. They find an idea that sounds really
interesting, but somewhere along the way, it gets stuck. That
stinks, because these people usually have terrific skills and
accomplishments to draw from. They're super workers, with solid
dreams. If they'd tweak their plans, they could build a
business that fits them like a pair of comfortable shoes.
So let's break that curse right now. Stop getting stuck on
business concepts that don't match you—because
there's a better way. It's time to discover your "hot
zone." The business you were born to start. The concept that
has your name written all over it. The start-up that will make you
sizzle.
Hot zones are business areas that dovetail with your natural
strengths. Maybe your hot zone is "selling products for young
mothers." Maybe it's "brokering information on the
Internet." Whatever it is, your "hot zone" is the
place where your skills, contacts and personality make a sweet
collision, with a real marketplace need.
And once you know your hot zone, it becomes very easy to launch
a great business. That "What's my next step?" feeling
disappears. No more trouble finding customers—or selling
them. Stay in your hot zone, and you'll get peak results from
all your entrepreneurial efforts. And those frustrating business
concepts? The ones that never work out? You'll leave those
ideas out in the cold.
You can find your hot zone by taking our convenient,
heat-seeking "hot zone" quiz. Discover if your latest
idea is hot, or not. Or take the biz you've already started up
to full burn. No ideas? No problem. Do the quiz—and feel the
heat.
You'll rank each idea you test from 10 (scorching) to 1
(leaves me cold), in eight categories. The hotter your overall
score, the faster that business will likely succeed for you. Just
scribble out your answers, or swap them with friends. We can have
fun with this. Now let's cook.
Whew! That's eight burning questions, all about you, your
motivation, your experience and your life. More than enough to
discover if any business holds the spark.
But whether you're steamy hot or Arctic cold during your
first time through, the real key to this exercise is using this
test on every business idea you hatch. Do that, and a funny thing
will happen. You'll see your highest scores all clustering
around a "zone" (or zones) of businesses and industries.
Maybe it's around the Net. Or great coffee. Or people who love
to snowboard. Or a restaurant in a rusty old thimble mill. Whatever
it is, you've found your hot zone—the business that will
cook for you.
So rake those coals, because you can always make a hot idea
hotter. Hit the trade shows, cultivate new contacts, and collect
the new experiences you need. That will push those tepid fours up
to steaming sevens and move chilly prospects into hotter
contention.
Keep it hot with a promise that you'll never go back. And
those hype ideas? The ones that promise everything but never seem
to catch fire? Give them all the cold shoulder. Stay warm in your
hot zone. And when opportunity knocks, you'll already be
opening the door.
1. Does this business get you
excited?
Someone once said that shopping for a business is like watching
a peep show. OK. But will you stay excited after that first peek? I
don't mean about the money or the success. I'm talking
about staying motivated to do the grunt work—like getting
customers and moving product. "It's so cool to think about
it" isn't enough to make a business happen. On a scale
from 1 to 10, rank your motivation:
10
points: "I would give my left lung to make my first
sale in this business."
5 points: "I'm willing
to work hard."
1 point: "We can finish
this business plan later. Isn't Friends on?"
2. Is this business
"you"?
Describe the perfect CEO for the business you've chosen.
("She's daring." "He can mix with all kinds of
people.") Now describe you.
10
points: "I must be looking in a mirror!"
5 points: "There's a
resemblance. But that person can do some things that I
can't."
1 point: "Who is this
stranger? And how did he get here?"
A word to the wise. If you need to re-tool your entire
personality to make a business fly, then it's not the business
for you. No matter what some guru might tell you, you already have
what it takes to succeed—when you pick a business that's
in your hot zone.
3. Have you done this
before?
You have "past lives." They're the skills,
contacts and experiences you've sucked up and stored away
during 20-odd years of doing, working and fooling around. OK, so
you've never run a software firm. But you have written code (in
college), handled finances (for your dad's store) and connected
with all the suppliers (that job at cyberland). This seance says
"You have the experience."
So do the déjà vu. List the key duties in your new
business (such as dealing with vendors and getting product on the
shelves). And for each one you've done (somewhere)
before—give yourself 3
points.
4. Can you walk the
walk?
There was once a waiter who wrote a screenplay for Jack
Nicholson. Trouble was, the only thing Jack wanted to buy from him
was coffee.
This question is about "being a player," or selecting
a business that's at the right level for you. Customers need to
trust your ability to deliver. Do people "see" you in the
business you want to start? That's terrific! Because before
they buy your product, they must buy you.
10
points: No problem. I'm the perfect image for this
business!
7 points: There's a gap
here. But I can close it.
1 point: Picture a short, bald
Abraham Lincoln. And I'm not even that close.
5. Got customers?
Vague plans, like "we'll advertise," just
won't do. But the good news is, you don't have to! In your
hot zone, you already know your customers. They're the moms at
your Gymboree class, the shops in your town. Or other moms and
shops just like them. They're the customers you've lived,
worked or played with. That's why you know what they need.
Right now, start naming every real, living, breathing customer
that you can actually reach with your product or service—give
yourself 2 points for each.
6. What's your "natural
advantage"?
"I'll use my DJ contacts to start a catering
firm." "My cousin runs a bait shop—I can sell my
lures there." "I can do Web sites for my alumni
group." There's something about you (your friends, your
job, where you live), that gives your hot zone business a foot in
the door. That's your "natural advantage." "My
natural advantage in this business is _____." Fill in that
blank, and give yourself 10
points.
7. Can you do it now?
The clock is ticking. And a million distractions (collectively,
we call them "life") want to trip your plans down the
black hole of never-never land. Believe the fortune cookie. It says
"New business is like used car. Longer it takes to
start—less likely it starts at all." If you can make at
least one sale in the next six months, give yourself 10 points. But subtract 1 point for each extra month
you'll need.
8. Will it support you?
They asked that of the man on the flying trapeze. But it's
just as true for entrepreneurs, because they walk a tightrope
called making your own pay. And until that business takes off,
you're working without a net. So it's not in the hot zone
unless it makes the money you need. If it will—before time,
patience or your marriage runs out—give yourself 10 points.
Score It!
75 and Up: I call this the
"Marilyn Monroe" zone, because some like it hot, and a
business can't get hotter than this!
55-74: You're like a cat
on a hot tin roof. I'd say this business is a go!
35-54: Definitely warm; you
have something.
25-34: Trouble; I'm
starting to feel a chill in the air.
Below 25: Iceberg, dead
ahead! And the water's freezing! To avoid one hell of an
impact, I'd think about changing directions fast.
Nick D'Alto is director of IEG, a nonprofit that helps
people create new businesses and careers. E-mail him at ND2020@aol.com.
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