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
If you've ever felt that you have the ideas but not theskills, backing or know-how to make things happen, you know whatthe search for the perfect start-up is like. You think you'vefound a promising idea. You can just see that business runningalong successfully, with plenty of orders rolling in.
But then you try to get started. And it's like putting on asweater and getting your head caught in the arm hole. You'rethrashing about, going nowhere. You can't get in-orout.
And that's my point. I've seen too many entrepreneursget hogtied like this. They find an idea that sounds reallyinteresting, but somewhere along the way, it gets stuck. Thatstinks, because these people usually have terrific skills andaccomplishments to draw from. They're super workers, with soliddreams. If they'd tweak their plans, they could build abusiness that fits them like a pair of comfortable shoes.
So let's break that curse right now. Stop getting stuck onbusiness concepts that don't match you-becausethere's a better way. It's time to discover your "hotzone." The business you were born to start. The concept thathas your name written all over it. The start-up that will make yousizzle.
Hot zones are business areas that dovetail with your naturalstrengths. Maybe your hot zone is "selling products for youngmothers." Maybe it's "brokering information on theInternet." Whatever it is, your "hot zone" is theplace where your skills, contacts and personality make a sweetcollision, with a real marketplace need.
And once you know your hot zone, it becomes very easy to launcha great business. That "What's my next step?" feelingdisappears. No more trouble finding customers-or sellingthem. Stay in your hot zone, and you'll get peak results fromall your entrepreneurial efforts. And those frustrating businessconcepts? The ones that never work out? You'll leave thoseideas out in the cold.
You can find your hot zone by taking our convenient,heat-seeking "hot zone" quiz. Discover if your latestidea is hot, or not. Or take the biz you've already started upto full burn. No ideas? No problem. Do the quiz-and feel theheat.
You'll rank each idea you test from 10 (scorching) to 1(leaves me cold), in eight categories. The hotter your overallscore, the faster that business will likely succeed for you. Justscribble out your answers, or swap them with friends. We can havefun with this. Now let's cook.
Whew! That's eight burning questions, all about you, yourmotivation, your experience and your life. More than enough todiscover if any business holds the spark.
But whether you're steamy hot or Arctic cold during yourfirst time through, the real key to this exercise is using thistest on every business idea you hatch. Do that, and a funny thingwill happen. You'll see your highest scores all clusteringaround a "zone" (or zones) of businesses and industries.Maybe it's around the Net. Or great coffee. Or people who loveto snowboard. Or a restaurant in a rusty old thimble mill. Whateverit is, you've found your hot zone-the business that willcook for you.
So rake those coals, because you can always make a hot ideahotter. Hit the trade shows, cultivate new contacts, and collectthe new experiences you need. That will push those tepid fours upto steaming sevens and move chilly prospects into hottercontention.
Keep it hot with a promise that you'll never go back. Andthose hype ideas? The ones that promise everything but never seemto catch fire? Give them all the cold shoulder. Stay warm in yourhot zone. And when opportunity knocks, you'll already beopening the door.
Hot Zone Quiz
1. Does this business get youexcited?
Someone once said that shopping for a business is like watchinga peep show. OK. But will you stay excited after that first peek? Idon't mean about the money or the success. I'm talkingabout staying motivated to do the grunt work-like gettingcustomers and moving product. "It's so cool to think aboutit" isn't enough to make a business happen. On a scalefrom 1 to 10, rank your motivation:
5 points: "I'm willingto work hard."
1 point: "We can finishthis 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 ofpeople.") Now describe you.
5 points: "There's aresemblance. But that person can do some things that Ican't."
1 point: "Who is thisstranger? And how did he get here?"
A word to the wise. If you need to re-tool your entirepersonality to make a business fly, then it's not the businessfor you. No matter what some guru might tell you, you already havewhat it takes to succeed-when you pick a business that'sin your hot zone.
3. Have you done thisbefore?
You have "past lives." They're the skills,contacts and experiences you've sucked up and stored awayduring 20-odd years of doing, working and fooling around. OK, soyou've never run a software firm. But you have written code (incollege), handled finances (for your dad's store) and connectedwith 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 newbusiness (such as dealing with vendors and getting product on theshelves). And for each one you've done (somewhere)before-give yourself 3points.
4. Can you walk thewalk?
There was once a waiter who wrote a screenplay for JackNicholson. Trouble was, the only thing Jack wanted to buy from himwas coffee.
This question is about "being a player," or selectinga business that's at the right level for you. Customers need totrust your ability to deliver. Do people "see" you in thebusiness you want to start? That's terrific! Because beforethey buy your product, they must buy you.
7 points: There's a gaphere. But I can close it.
1 point: Picture a short, baldAbraham Lincoln. And I'm not even that close.
5. Got customers?
Vague plans, like "we'll advertise," justwon't do. But the good news is, you don't have to! In yourhot zone, you already know your customers. They're the moms atyour Gymboree class, the shops in your town. Or other moms andshops 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 customerthat you can actually reach with your product or service-giveyourself 2 points for each.
6. What's your "naturaladvantage"?
"I'll use my DJ contacts to start a cateringfirm." "My cousin runs a bait shop-I can sell mylures there." "I can do Web sites for my alumnigroup." There's something about you (your friends, yourjob, where you live), that gives your hot zone business a foot inthe door. That's your "natural advantage." "Mynatural advantage in this business is _____." Fill in thatblank, and give yourself 10points.
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 theblack hole of never-never land. Believe the fortune cookie. It says"New business is like used car. Longer it takes tostart-less likely it starts at all." If you can make atleast one sale in the next six months, give yourself 10 points. But subtract 1 point for each extra monthyou'll need.
8. Will it support you?
They asked that of the man on the flying trapeze. But it'sjust as true for entrepreneurs, because they walk a tightropecalled making your own pay. And until that business takes off,you're working without a net. So it's not in the hot zoneunless 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 abusiness can't get hotter than this!
55-74: You're like a caton a hot tin roof. I'd say this business is a go!
35-54: Definitely warm; youhave something.
25-34: Trouble; I'mstarting to feel a chill in the air.
Below 25: Iceberg, deadahead! And the water's freezing! To avoid one hell of animpact, I'd think about changing directions fast.
Nick D'Alto is director of IEG, a nonprofit that helpspeople create new businesses and careers. E-mail him at ND2020@aol.com.