The first thing you need to do is come up with an idea that you are passionate about. According to an article in Reader’s Digest 80% of entrepreneurs interviewed were passionate about the core idea of their business. How do you find such an idea? I think the best way is to go through the yellow pages and look at the different headings. Make a list of the types of businesses you think might move you if you were involved with them. Write them all down and start from there. The next steps I got from Jon, the only true entrepreneur I actually know. He started a business on his own and now employs 16 people. In his email to me he had this to say: I know this sounds obvious, but you need a product or service that people will buy. Sounds simple and obvious, but without paying customers you have nothing. Talk to as many people as you can (whether you know them or not) and ask if they would pay money for what you want. The amount they would pay is not relevant at this point, nor is whether they actually would at that time. But the question posed is most important – if the need for using what you are selling came upon them, would they consider paying YOU for it. If the question is yes, then find out why – if not, then why not. Sometimes knowing why not will help you fine tune your concept. Ultimately you will be able to determine if you can solicit enough customers to make a business out of it (and therefore make a living).
From these initial feedback sessions, begin to formulate a “Business Plan”. There are many books and online resources on how to do this, but essentially you want to explain the product or service, how you plan to market it, estimate some realistic goals for income, expenses, etc., where you plan to get initial funding (banks, investors, your own pocket,) and what you anticipate your business to look like say in 3-5 years.
Once you have a written plan, show it to as many people as possible to help you fine tune it. Again, you are not necessarily concerned whether these people are would-be customers, but rather they feel your concept is viable. You also want to make sure it is understandable and concise – if they don’t get it, it is possible others won’t once you start the business. Through this process, you will again get both positive and negative feedback. This is a good thing, as it will ultimately help make sure you start off right.
Once you have the plan settled, you can begin to put together action steps to get your business going. While all of this sounds like a lot of work, understand that it is. No business starts off making you millions – it takes work, people, fine-tuning again and again, and a little luck (the right niche at the right time, that you are doing at least as well as others that try it). When I started my business, it was just me. Then, when I had more work than time, I brought on a partner to help. Now we have 17 people (the managing of which is another discussion), but we obviously did something right along the way. But alot of time, effort and good people allow us to be “successful” for now – tomorrow is always a new challenge that needs to be addressed, fine tuned and worked on. And so it goes…..
To find business plan templates you can see what the Small Business Administration has to offer. You can go to http://sba.gov and see what they have there. You can get your idea and business plan crituqued by a qualified business consultant for free, as many times as you want, through the SBA’s Small Business Development Centers at http://sba.gov/sbdc
Well, that’s the installment for this week. If you have had any experiences in getting financing for your business I would love to have you post it. next week that’s what I will deal with.
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