A summing up of conversations I’ve had lately
Aug 21, 2007 work work work
“Hey, Dawn! I have this idea for a small business. Are you ready? I’m going to sell widgets/provide widget service! What do you think?”
What I think:
1. Have you thought about how much money you need this business to make? Are you looking for a hobby? Or are you looking to pay your mortgage? If you need to make $500 a month and your widgets sell for fifteen bucks apiece and your time/materials is five, then you need to sell 50 of them to make your goal. Is this realistic? What if you need to make $3000 a month? Can you reasonably expect to sell 300 widgets a month?
2. Is there anyone else providing this widget/widget service? Is it successful? Why or why not? What can you learn from their business model? What are their qualifications? Does their current model/qualifications speak to what you will need to provide? Or if your model/qualifications differ, how can you sell this difference as a positive?
Example: You want to sell a service providing poker lessons to amateurs and someone in town is doing this already. They offer open classes at rec centers and private tutoring for an additional fee. They have trophies and awards won in Vegas and have been featured on poker reality shows. What you can learn from them:
–That there seems to be a need for this service;
–That people will expect some level of provable expertise;
–That you’re not going to be able to market at the rec centers.
Now look at yourself: You’re just a friendly neighborhood card hound without professional poker experience. You have a background in customer service for a travel agency specializing in boomer vacations.
–Can you rethink your audience? (Targeting retirees who want to set up their own poker clubs?)
–Can you rethink your services? (Helping people create and/or lead said clubs?)
–Can you find new venues? (What about retirement homes or condo association boards for people 55+?)
Or do you need to scrap this Poker coach idea?
3. What’s going to be your marketing plan? If you build it, they won’t come unless you tell ‘em about it and tell ‘em how to get there. How are you going to do that? What’s your budget?
–Can you lead workshops or are you afraid of public speaking?
–Can you create a campaign (including getting the content, design and target list)?
–Can you create a festival meant to promote your product and service?
–If there is someone providing the same market and service, remember you will need to keep the competition in mind as you plan your own campaign.
Some For Real and True FACTS:
1. There is no “easy way” to make money. Making money takes work. If you’re going to be an entrepreneur, make sure that you feel passionately about your product or service or the sheer drudgery of the work will kill you.
2. If you have a great idea, chances are that someone has had a similar (or even the exact same) idea. Learn from them! You’ll be one up on the competition because you can benefit from their mistakes and successes.
This message brought to you by the exuberant but ill-informed people who have recently approached me with their business ideas. Asking yourself those three questions can save you a lot of trouble before you sink too much time/energy/money into your efforts. And remember — if your first ideas don’t pan out, you will have other ideas. Exuberance isn’t a one-time thing. Inspiration will strike again. If this isn’t what’s going to make you a living, you will come up with something that will. Hang in there.
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