So You Want to Start a Business?

Editor: Zoe Zhang
4 Nov 2008 03:22:05 GMT

Here's smart advice for taking your idea and turning it into the business of a lifetime.

I've always believed that almost any business idea is a good one if the business owner works hard, knows everything there is to know about the product or service and vows to develop the concept until it's a viable success.

After that, you can still plan on few vacations, long hours and disgruntled employees. I know--I've owned my own business for 17 years, and I couldn't imagine doing anything else.

Getting an idea for a business can be a challenge, but a little brainstorming and some solid research can help you figure out what you'd like to do. Start with a pad of paper, and make a list of all the things you like to do. Next, read business magazines to see what types of businesses other entrepreneurs have launched successfully. Hit the bookstore or library, and check out books about other successful entrepreneurs. Research ideas on the internet.

Is the Business Right for You?
Once you've compiled a list of business ideas, seriously consider whether that business is right for you. Gauging the business against your own likes and dislikes, for instance, will help you evaluate your options. Ask yourself

1. Will the business sell a service or product you would use?
2. Would other people pay for it?
3. Does it involve heavy sales and, if so, do you like selling things?
4. Can you handle a cold call?
5. Does the business require you to be behind a desk all day?
6. Will you be on the go, doing your work at clients' offices?

The answers to these questions will offer clues to whether you should pursue your idea.

Also, consider the economy as you think about your future. Reselling SUVs right now is obviously a bad idea, and the same may be true for selling real estate. However, despite the state of the real estate market, people are still trying to sell their homes, so a home-staging business might be realistic and profitable.

You should also avoid ideas that are overused. Every corner seems to have a Starbucks or other coffee house on it, so if you have your heart set on being a barista, you'd better make sure you have a unique product to offer.

Give serious thought to your budget as well. If you have absolutely no money and bad credit, this may not be the best time to start a business. Instead, wait until you can afford to finance your venture--you have to spend money to make money. Yes, you could bring on a "money person" as a silent partner, but he or she will expect at least half the profits.

No Money? Start Small
The other option, if money is a concern, is to start small. Downscale your idea to something that's manageable at this time, then grow it as you begin to make sales. A client of mine started a pet-sitting business on a small scale that she grew into a profitable service. All she started with was 500 business cards and a lot of energy, but she worked hard to turn her business into a successful concern.

After you've narrowed your list to a few good options, do your homework for each of the businesses you're considering. First, find out whether there are other, similar businesses in your area so you can determine what your competition will be. Next, consider the type of office, warehouse or other facility you might need. What's available in your area and how much will the rent cost? Next, investigate licensing requirements. What type of licenses will you need to run the business? After doing the legwork, you may discover the idea doesn't suit your lifestyle, and you can move on to researching your next option.

The ideas I've seen recently that appear to be headed toward success are affordable items and services. After 9/11, studies showed that people were so concerned about the economy that they spent money reluctantly. The one item women bought the most was lipstick--it was an inexpensive, immediate "feel good" item. It's critical that you think about the needs of others to determine whether your concept is viable.

No matter what type of business you're considering, the trick is to think big. Although your idea may be modest now, you want one that can turn into a global business that will easily fund your retirement. I didn't see a profit for several months after I began Le Gourmet Gift Basket, but I found out later that most businesses don't see a profit for the first three years. And I knew I could grow this business into something big.

Pursuing your dream takes time and effort. Money doesn't hurt, either. Do your research, be frugal and don't fall prey to everyone who tells you how to run your business. And don't be swayed by those who tell you your business might fail--let the idea be your idea and the expansion a result of your hard work.

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