Starting your own business – So what?

Posted: September 5, 2013 in Business startup

So, you weren’t scared of the low probability of success of start up businesses and you are still in the game? Okay,  the next step is to do the following:

  • Clearly articulate in 250 words or less the type of business you want to start.
  • What type of business will it be? Retail? manufacturing? Service?
  • Why is this business a good idea?
  • How do your qualifications dovetail with the business idea?
  • You should prepare a 1 to 2 paragraph “business bio” on yourself. This is not a resume but one of the foundations of your planning process. You may not have had the direct experience in this type of business as an employee but you may have had managerial or supervisory experience, marketing or finance experience and have had exposure to budgets and forecasts.

That is enough to keep you busy for a while. Here is a very good exercise that may curb your enthusiasm for a new business venture or possibly give you pause to do more in-depth research on your business idea. Each of the first four bullets above should have the words so what? added after.  This should give you time to reflect on your possible venture.

For example, you might say: “I plan to open a small business accounting business.” Okay, … so what? This will force you to add some features that will make your new venture stick out. You might add that the prices charged clients will be less than local full service bookkeeping businesses and certainly less than the rates offered by public accounting practices. You can add that your business will focus its marketing activities on businesses from 1-10 employees. This adds a massive market to your potential client list.

The next so what should deal with why the business will be attractive to possible clients.  The next so what might cover your academic credentials and prior experience in both private enterprise and public accounting. I think you see my point here.

By answering the so what questions you are narrowing your focus and concentrating on the key questions that possible clients would want to have answered.

Try it with your business idea. If there are more questions unanswered this isn’t bad. You need to do more research before you open your doors to a market that you might not have understood beforehand.

 

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