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The Business
Idea The first step in starting a business is having the
right business idea. Every successful business or enterprise
starts as a simple idea, a solution to a problem or
a dream in someone's head.
There are 3 main sources for
good business startup ideas:
1. A
New Business Idea
2. Building
a Business on Your Existing Skills
3. Buy
a Franchise or Existing Business (someone else's
idea)
Explore all three options below to see which is the best
fit for you.
Many businesses
are started by people who had an idea and simply ran
with it. If you look at the most successful entrepreneurs,
there are a few common themes :
They Follow Their Passion
One thing nearly every great entrepreneur has is
a passion for something. Whether it be software (Bill
Gates), Real Estate (Donald Trump) or Ice Cream (Ben
and Jerry), these entrepreneurs have managed to identify
what it is in life that they love to do and make it
into their job. They've literally created their dream
job!
Obviously one of the first things the budding entrepreneur
needs to identify is what makes them tick. What do you
enjoy doing so much that you literally lose track of
time? What would you do if you already had millions
and money was not a necessity?
This can't be
emphasized enough. Don't wake up 2 years after
you've started your business to realize you don't like
what you're doing. Think about what makes you
happy, excited and passionate now and build a business
around that.
They Solve Problems
Entrepreneurs also solve problems. Sure, your passion
may be to make sandals, but the problem-solving angle
has to come into account sometime (i.e make the best/cheapest/trendiest
available). Entrepreneurs are continuously wondering
if something can be done better, faster, cheaper or
in a completely different way. They look at their surroundings
and can find opportunity to improve just about anything.
For the aspiring entrepreneur looking for their first
business idea, we advise you simply start paying attention
to your surroundings : notice why one store is always
packed while the one across the street is not; pay attention
to trends in commerce and technology; ask why is this
or that so slow, or so inefficient, or so expensive and
start brainstorming on how to improve upon existing
ideas.
Entrepreneurs do not accept the status quo, they
look at something, wonder why it isn't done better,
and then go out and outsmart those not willing to innovate.
They Stay on Top of Business Trends and New Markets
One of the quickest ways to start generating business
ideas is simply to look at what's succeeding right now.
Check out the INC.
500 Fastest Growing Companies, the Entrepreneur
Magazine Top 500 Franchises and the hottest
businesses going today.
Look around your town: see those trendy coffee shops
on every corner? How about those healthy fast food places and 99¢ Stores that are popping up everywhere?
There's a reason why these businesses are exploding
and an aspiring entrepreneur should know why.
Tip:
Explore our Small
Business blog for New Business Ideas.
Most new businesses are started by people with a
particular skill that have simply built a business around
that skill. A machinist will start his own shop,
a talented secretary will open her own secretarial service,
a good cook will open his own cafe, etc.
The
most important skill to acquire if you're going to take
this path is to start thinking from an entrepreneurial
perspective instead of a professional or employee perspective.
In fact, one of the most influential small business
books of all time was written about this very topic: The
E-Myth: Why Most Small Businesses Don't Work and What
to Do About It by Michael Gerber addresses
the fact that while most small businesses are started
by people with an existing skill, very few of them have
the operational and entrepreneurial skills to make their
business a success.
For example, someone may be a great carpenter, but
do they know how to market their services, manage the
books, hire more talented carpenters or systemize the
business to run itself? Michael Gerber argues that most
people don't and he's outlined the specific steps that
will help the business owner remedy the situation.
Visit the following link to learn more: The
E-Myth: Why Most Small Businesses Don't Work and What
to Do About It by Michael Gerber (amazon.com)
Many times, the fastest and easiest way to start
a business is to simply buy an existing business or
franchise. Franchises are attractive because they've
already proven successful and you are simply buying
into their system. Existing businesses are attractive
because you can pick and choose the right business and
most of the legwork has already been done.
Before Buying
Do your research! There are a lot of businesses and
franchises out there; not all of them are the best match
for you and many are not nearly as great as they may
say they are. Due Diligence is the keyword in this instance
and buying a business can be a complicated process.
Instead of laying out the steps here, we'll provide
links to some great sites and resources for buying
a business or franchise
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