One of the scarier moments in an entrepreneur's life occurs
when he or she chooses what business to go into. It can feel like
Let's Make a Deal: "If I choose Door #1, it could
be a fabulous fortune or a pile of dung, and until the curtain is
pulled, there's no telling which."
Fortunately, choosing a business doesn't have to be that
random. Here's a three-step plan for avoiding the dung piles
and finding a good business that's right for you.
Because when choosing a business, one size definitely doesn't
fit all.
Step One: Answer These Questions
1.Would you pay $10,000 to
$100,000-plus to have the business specifics laid out for you,
cookie-cutter style? If so, consider purchasing a
franchise. Check out Entrepreneur magazine's Franchise 500 listing for more
information on the top 500 franchises as ranked by
Entrepreneur. Just be sure that before signing on the dotted
line, you've thoroughly investigated the opportunity, talked
with at least a half dozen franchisees who were not handpicked by
the franchisor, and understand that you'll be subject to the
rules and regulations of the franchise for the life of the
business.
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2.Is there a type of customer
you'd find it easy to sell to? People who: (Check all that
apply).
- are in a particular occupation or industry
(specify).
- with a particular hobby or recreational interest
(specify).
- are in a certain income bracket (specify).
- are of a specific age, gender or background (specify).
For example, a self-employed psychologist who works best with
middle-aged men might decide to market exclusively to them. That
can help him stand out from the zillions of other shrinks hunting
for clients.
3.Look at your current work.
What do your customers or colleagues complain most
about? Could you start a business that solves that
problem? A machinist for a large aviation firm heard constant
gripes from co-workers about the unavailability of parts. He quit
his job to start a homebased parts courier service and had just one
customer: his former employer.
4.Do you have a hobby or
personal interest that could be turned into a homebased
business? For example, I know a lot about breeding
roses. I could run a business in which I teach people a great new
hobby--breeding roses. My target audience would be senior citizens.
They have money and time for hobbies. And it's something you
can do forever--many of the world's leading rose breeders are
over 80. I'd conduct free seminars at senior centers to show
people the joys of rose breeding. Then individuals could hire me to
show them how to do it, just as people hire golf instructors or
piano teachers.
5.Do you believe in a product
or service that you might like to sell? Consider the
products or services you love to use. My sister, Sandy, loves
makeup and runs Let's Make Up, a successful business in which
she offers free makeovers. The makeovers usually result in a
$100-plus sale of make-up because the customers like the result and
want to buy all the secret potions Sandy used to create that
perfect look.
Caveat: All things being equal, service businesses are
safer than product businesses. There's no costly inventory, no
theft problem, no spoilage. Plus, service businesses are usually
easier to run from home.
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