So You Have a Great Business Idea – Now What?

So you’ve come up with a snazzy idea that’s sure to put money in the bank, eh? So what are you going to do about it? What’s your next step?
Most people do one of two things:

• They jump on the bandwagon before they know how to play, or
• They talk the subject to death, research it to death, make tons of notes–and do nothing.

Either way, they end up frustrated.

I know people who fall into both categories. You probably do, too. In fact, you may be one of these people. I was.

So how can you break out of this aggravating pattern and put yourself on the path to success?

Here are a couple of suggestions:

DO SOME RESEARCH

Take a little time to see if your idea will fly. Now I’m not talking about a full scale investigation that takes months or years to complete. Instead, spend a few hours on the Internet, scanning the search engines for relevant sites and posting a few questions in appropriate newsgroups (Has anybody done “x”? Where could I find more information on “z”?).

Put in some library time and look for resources at your favorite bookstore (either online or off). You’re looking to see if you have a ready target market, and if they’re already buying products and services similar to what you’re offering.

Why? Because chances are they’ll buy more of the same. If white widgets are all the rage and have been for months, chances are black, blue, or red widgets might make money as well. If no one’s buying widgets at all, stop. Do not pass go, do not collect $200.

Look elsewhere. Don’t waste time, money, and energy developing and trying to sell something no one wants.

“But I’ll be the first one on the block,” you might be thinking. “I’ll capture the market and make millions!”

Yes, I suppose there’s always that possibility. But don’t bet the farm on it.

While it is true that stories like that happen every once in a while, more often than not they come about by accident rather than design.
Silly Putty™ and Aspartame (NutraSweet™) were born from lab experiments gone awry, and the Yahoo! directory started as a list of favorite web sites by two Stanford University technophiles.

But many of the original ground breaking ideas that are common place today have very unglamorous and un-newsworthy histories of long hours, near bankruptcy, public disinterest and divorce. Such sordid tales are behind the Xerox machine, the typewriter, deodorant, and McDonald’s.

While persistence finally paid in each of these examples, you know there are hundreds of other casualties whose ideas never came to fruition.

Don’t try the hardest thing first. Mimic what’s already working, and get some success under your belt. You can always go back later and try the hard sell when your “tried-and-true” idea takes off and you don’t have anything better to do with your time and money…

If your idea looks viable, proceed to the next step. If not, find another idea and put it under your feasibility microscope.

MAKE A PLAN

Now you need to figure out how to go from idea to money in the bank. The best way to do this is by creating a business plan.

Now don’t be put off by the name. If you take the time to think through everything you’ll need to get from point A to point B, you’ll have both your “to do” list and your game plan by the time you’re ready to get started.

A business plan looks at things like:

• Licensing requirements
• Legal entity
• Hiring employees
• Scrutinizing the competition
• Your marketing plan
• Your funding requirements

In short, it forces you to take a big picture view of your business-which is really great, if you don’t have a business background. You’ll know what parts you can do, what parts you’ll need help with, and an estimate of how much it’s going to cost.

If you’re thinking about approaching a bank or investors for money, you’ll need a business plan to share with them. Other parties along the line might require a copy as well.

Your accounting, spreadsheet, or word processing software may have come with a business plan template, so look there first. If it you don’t have one, check out the Small Business Administration’s version or download a copy of BusinessPlan Pro.

So now you have your idea and your business plan. The next step?

EXECUTE THE PLAN

There comes a point when you need to stop gathering data and start gathering sales.

Everything doesn’t have to be perfect. Move forward. Learn. Try stuff. If something doesn’t work, try something else. A little success brings a lot of confidence; all you have to do is get started.

To quote Nike, “Just Do It!”

So you’ve got a great business idea! What do you do with it?

1. See if anyone wants to buy it
2. Make a plan
3. Execute the plan

Follow these three steps-and you’ll be in business!

The Best Business to Start

As the owner of a business ideas website, I’m often asked, “What’s the ‘best’ business to start?”

The answer: The one that best suits your needs. Obviously this will be different for everyone. But let me give you some questions to ask yourself before beginning ANY new venture. I’ll use the “Who, What, Where, When, Why?” approach:

WHO Am I?

Knowing who you ARE is as important as knowing who you ARE NOT. If you’re a mild-mannered librarian from Metropolis, for example, then you are not a Las Vegas showgirl.

Obviously, right? Yet as apparent as this seems, I still see people start businesses or jump on business opportunities that have nothing to do with who they are or what they know. Starting a new venture is challenging enough without complicating the issue by tackling a product or service you know nothing about.

Give yourself a fighting chance: stick with the familiar.

WHAT Do I Want?

Determine what you want to get out of the effort. Do you want to:

• Get out of the house and earn an extra few hundred dollars of “mad money” every month?
• Replace your current income so you can tell your boss to take a hike?
• Make more money than you’ve ever made in your life?

Each one is going to require a different level of time and commitment. For some, a pre-tested business opportunity may fit the bill. For others, a start-from-scratch business may be the only way to go. Take your time to investigate; there’s a lot available either way.

But be realistic. If you work full time, have kids to chauffer around, a house to run, and other duties besides, then you’ll need something you can fit into your hectic schedule. If you’re retired and looking for a way to fill your time and meet interesting people, you may want something completely different.

WHERE Am I Now?

A lot of people jump into businesses before they’re really ready. It’s easy to do, especially if you find something you really like and are trying to get a way from something you really hate, like a boss or a commute or co-workers. Still, it’s important to think the matter through, and DO YOUR HOMEWORK. You know, the old Research and Development thing.

If you’re looking for some “mad money” and the extra income is optional, then trying a few different business opportunities to see what suits you best may be the way to go. But if you’re going to rely on the income (as in replacing your current job), you’ll need to take a more serious approach to the matter. Take the time to find what suits you. Learn what you need to know. LOOK BEFORE YOU LEAP.

If you fail to plan, you’re planning to fail. Know what you’ll need BEFORE you get started, or you’ll waste time, energy, and money in a desperate attempt to get the thing going.

WHEN Can I Get Started?

Now having told you to research and plan, don’t use that as an excuse NOT to get started. Don’t wait until the kids are grown or you retire or after your vacation or until next year. Start NOW.

Read, digest, learn. Begin to narrow down the ideas that are best for you. Get to understand the “big picture” of what it takes to run a business. Start some market research. Do SOMETHING.

As Confucius said, “A journey of a thousand miles begins with the first step.” Take it. You’ll reach your destination that much sooner.

WHY Look At The “Big Picture”?

Most people who start businesses don’t come from a business background. They’re good at some THING, so they start a business based on their talent or skill. Nothing wrong with that. But keep in mind that the product is only PART of the business equation. To have a SUCCESSFUL venture you need:

• A target market with money
• A product the target market wants
• A way to tell them about it (marketing)
• A way to get it to them (fulfillment)
• A way to manage the process (administration)
• A way to maintain the process (maintenance)
• A plan for doing all the above

Put you ego aside and be honest with yourself. Identify your strengths and weaknesses. If you have zero marketing skills, learn to market or find someone who will do it for you. If bookkeeping gives you hives, find a competent accountant or bookkeeper. If you’re not sure how to get started, read books or find a mentor. Try your local SCORE chapter.

Whatever you do, DON’T just ignore the parts of your business that aren’t as interesting to you as the others. I’ve seen too many disasters by people who have done this. If you know you’re not going to do something that needs to be done, own up to it from the start and find someone who can help. It may cost you some money-but it will probably be a lot less than leaving the thing undone.

HOW Do I Get Started

Imagine the perfect business for you:

• What would you be doing? Playing golf? Cooking? Unearthing dinosaurs?
• Where would you work? At home? Out of a suitcase? On the stage?
• When would you work? At night? When the kids go to school? October through March?
• Why this line of business? Fulfill a childhood dream? A favorite hobby? It’s all you know?
• How much money would you make each month? $500? $5,000? $50,000?

Now that you’ve imagined the perfect business, go make it happen!

The “perfect” opportunity is not going to find you — you have to find it or create it for yourself if it doesn’t exist. It’s not impossible. In fact, once you get started, you’ll discover how easy it can be and wonder why you didn’t get started sooner.

So what is the “best” business to start? Considering your interests, abilities, commitments, dreams, and income aspirations, the “best” business is the one that best suits your needs.

Good luck!

“Most successful men have not achieved their distinction by having some new talent or opportunity presented to them. They have developed the opportunity that was at hand.”–Bruce Marton