restaurant in Florence, and we’d had a couple of bottles of wine, but it sure seemed like a good idea at the time!
However, even though starting and running a restaurant sounds exciting, it has got to be one of the toughest things on earth to do. My conclusion is that many people suffer from the “grass looks greener over there” syndrome. They think that because a restaurant is such a pleasant place to eat, it would be a nice business to run. They have no idea of the risks involved in developing a restaurant and the effort required to keep it running. That’s like judging a book by its cover — don’t do it!
Let’s look at another type of business that often attracts people who want to work for themselves. Many years ago I investigated a company that sold household water-purification products. The company made slick presentations to groups of people, telling them how much money they could make selling these units to friends and family. The presenters said anyone could make $30,000 or more each month with hardly any effort. Sounds pretty good, doesn’t it?
When I arrived at the company’s head office, I was amazed at the buying frenzy going on. I stood beside two individuals who I was sure knew nothing about the product or how to sell it. They handed over a certified check for $5,000 for a number of products. I have no proof, but I’ll bet most of those products are still sitting in their garage.
These two examples show how easy it is for people to imagine that the grass is greener on the other side of the fence. They hate their job and have found what looks like a fun or easy way to make more money than their current salary, but without the boss or coworkers they hate. The problem is they have no idea what is actually involved in running the business. In most cases, a business that sounds easy is not. You are much more likely to succeed — and to avoid wasting a lot of time and money — if you stick to what you are really interested in and skilled at.
Something Old? Something New?
For many people, the type of business they are going to start is obvious: it’s what they have been trained to do. The landscaper starts a landscaping business, the doctor becomes a general practitioner, the lawyer starts a law firm, and the contractor starts a construction business or provides general handyman services. This is the simplest route to take and generally has the highest chance of success because the individuals already know how to do the work of the business. It isn’t a guarantee of success, however, since there is more to running a business than just doing the work (remember my description of the three-legged stool in Chapter 2?).
But maybe you’d like to do something different. Maybe you’re after a change, a challenge, something you’ve always dreamed about spending your time doing. Now is your chance to explore that dream. It’s a chance to make a change in your life that gives you the ultimate satisfaction — doing what you love every day.
Let your mind wander for a bit. What are you keenly interested in? What are your hobbies? Maybe there is a business opportunity here. Let the following stimulate your thoughts:
• Listen to your friends and business associates. Simply keeping your eyes and ears open is one of the best ways to find a new business idea. Listen to the people you respect. Ask them for their ideas. Is there a service or product they need that they aren’t getting?
• Think about your education and experience. What are you good at doing? Maybe you have a knack for selling to customers. That opens up huge opportunities. You aren’t limited to what you are selling now — think about what else you could apply these skills to.
• Have a look at what others are doing. The Internet is great for this type of research. Don’t forget to look at what is going on in other countries as well. Maybe the answer is a variation of what you are currently doing rather than a major change.
• Keep current on news and trends. Maybe your business can offer a product or service that is not available yet but will be in demand in the future. For example, there is an aging population in North America, and a large number of baby boomers are approaching retirement. What are they going to need?
Research, Research, Research
Once you’ve decided what it is your business will do, it’s time to determine whether anyone will buy or use what you are offering. This may sound obvious, but in many cases of business failure, the owners skipped this step. They invested a lot of effort trying to build a business before they discovered nobody wanted the product or service.
The result is a lot of wasted time, energy, and money. It can often mean the ball and chain of personal debt after the venture fails.
You need to look at potential customers and the competition, and you also need to consider how demand for the product or service will change in the future. This is easier if you are currently working for a company that is in your chosen industry already. Just keep your eyes and ears open. It’s much more challenging if you are entering an industry you have little experience in.
In either case, start by exploring the many free sources of information: industry trade journals, government agencies and departments, your local board of trade or chamber of commerce, newspapers, and magazines. The Internet makes this task much easier than it used to be, but don’t forget to visit the library and ask for help. I am always amazed at how helpful librarians are — it’s surprising what you can find out merely by asking. (Self-Counsel Press has also published a number of helpful books, including the “Start & Run” series, which gives specific information for people thinking of starting a variety of small businesses.)
One thing to consider carefully when determining the potential demand for a product or service is whether you are going to sell to businesses or to individuals.
If you are going to market your services to businesses, start by analyzing the market of your competitors. Are the clients in a solid industry? If your clients are on shaky financial footing, you run the risk that you will not get paid. Research the industry and the companies within it before deciding to service it.
If you are going to sell to individuals, the best way is easy and cheap: let your friends, family, and associates know what it is that you have to offer and sit back and see if anyone asks for it. If they do, you’re onto something. If they don’t, it’s not the end of the world. Do more research by asking why they aren’t interested: it’s free information from people who usually give their unbiased opinions. That type of information is invaluable.
Learning from Hollywood
Because I have the entrepreneurial itch, I’m always on the lookout for it in the people and events around me. It can be truly inspiring when you see it.
I found a great example, literally the night I wrote this section. It came as I was watching a movie — one of my favorite pastimes.
The movie was In Her Shoes, based on the novel by Jennifer Weiner. It’s an engrossing tale of two completely different sisters who eventually learn to appreciate one another. What caught my eye was that both sisters have the entrepreneurial itch. Rose (Toni Collette) is a workaholic lawyer who happens upon a business as a “freelance dog walker.” No real research done at all — she is walking a dog that was left at her house, and people who know the dog’s owner ask her how much she charges. She sets up a deal with a kennel to refer clients to her in exchange for half of the fees. It helps her create a life she actually enjoys after she quits her stressful job.
Maggie (Cameron Diaz … wow!) is a scatterbrained party girl who visits her grandmother Ella (Shirley MacLaine) in Florida on a whim. She ends up helping
