Start Your Engines Choose the right business for you, and you'll be on your way to success.
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Brainstorming and selecting the type of business you will startis key to becoming successfully self-employed. It involvesdiscovering the business that fits you best and finding out whetherthere are enough customers willing to pay good money for yourofferings.
"When clients are trying to decide what kind of business tostart, I have them list what they consider to be their strongesttalents, skills, and educational experiences," explains JeanWall, a business counselor with the University of Alaska SmallBusiness Development Center located in Anchorage. "Ifthey've produced a list of four or five different types ofbusinesses they feel they're interested in, I have them do aself-evaluation to determine how well their current abilities,talents and education meet the needs of the businesses they'veidentified. Personal interest in the ultimate business isimportant, too. The business idea that makes the greatest matchoverall with these criteria is an excellent startingpoint."
As a fledgling entrepreneur, it is critical that you conduct athorough self-assessment in order to find this match. To do so, askyourself a series of personal questions, and jot down yourresponses. For example, what kinds of things do you most enjoydoing? What do you like to do on your day off? What is ityou've always said you were going to do someday? What are thethings you do that others compliment you on? If you could designyour perfect day, what would you do? To what degree do you enjoyinteracting with others? What types of things do you notlike to do? Take the time to note both your strengths andweaknesses, your preferences and aversions.
Next, brainstorm and come up with a list of potential businessideas that mesh with your abilities, interests and lifestyle.Almost all businesses fall into one of two categories: sellingproducts or selling services. Nearly any innovative product canbecome the basis for a successful venture if it can be producedcost-effectively and there is a distinct market for it. Unlikeproduct-based businesses, many service businesses can be startedmore readily, as they frequently involve no inventory and, thus,have lower start-up costs. Think about which category appeals toyou most, then take your decision-making from there. Remember touse the results from your personal assessment as a checklist toevaluate your options.
If you find that you're having trouble coming up with viablebusiness ideas, keep in mind they can come from a variety ofsources. Often, they extend from past or present career positions,hobbies, personal interests and leisure-time activities. Sometimes,they result from identifying future trends or businesses that aresucceeding elsewhere, or from finding some sort of problem andcoming up with a solution. Occasionally, they seem to just appearfrom out of the blue. Ideally, they allow for the fulfillment oflong-standing goals and dreams.
"I've been into motorcycles since I was 5 years old,and I raced motocross for ten years. It was my lifelong dream towork on motorcycles full time," says John Young, 24, owner ofXlent Custom Cycles in New Lenox, Illinois. Young's businessprovides custom-built motorcycles and after-market Harley Davidsonparts and accessories.
"I realized that Harleys were something I really got intoas I got older, and I knew there was a great market for them outthere," Young states. "Having been around the bikes, Iknew quite a bit about them and about the local market demand. Thebiggest risk I faced came from the fact that there were competitorsin my area. But I knew I could overcome that risk, because thecompetition's rapport with customers was not good. They treatpeople badly, and I knew I could use that to my advantage. I'mas busy as I can get right now."
Customers are the most crucial ingredient in your recipe forentrepreneurial success. Before settling on your ultimate businessidea, therefore, it is imperative that you determine if you'llbe able to find enough people in your community who'll need,and be willing to pay for, your offerings. Remember: The mostsuccessful businesses flourish not only because they providefantastic products or services, but also because they fill aspecific need in their communities.
Once narrowed to a desired venture, your goal is to learneverything you possibly can about your intended marketplace beforeopening day arrives. Conduct your own feasibility study to figureout who is most likely to pay for your product or service once itbecomes available, and how your offerings will differ from those ofany businesses currently serving their needs. After identifying thepool of potential customers, you can conduct a mall-interceptsurvey, a direct-mail survey, or a telephone survey. Ask people inthe local market whether the product or service is needed, whatthey're looking for in such a product or service, and how muchthey'd be willing to pay for it. Purchase and evaluate yourcompetitors' offerings, and visit your local chamber ofcommerce to see how many competitors already exist in your area. Ifpossible, talk to a few entrepreneurs who are doing what you'dlike to do to get a better picture of the traits, abilities andcustomer appeal required to succeed.
