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By Sameer Kumar

Itching to Start Your Own Business - Here's How You Do It! (Part II of II)

Welcome back, my dedicated entrepreneur. This month I’ll give you the nitty-gritty on what it takes to actually get the ball rolling for your dream business. Last month, we ran through a process that helped you figure out what business was right for you. If you haven’t read the first part of this series, get caught up. If you haven’t completed your homework from last month, do it. Your business is your baby, so no shortcuts.

Are you wondering, “How do I start?” The simple answer is that you start by PLANNING. If you’re anything like me then you’d much rather DO, DO, DO than PLAN, PLAN, PLAN. But it is an absolutely essential step to keeping your business on the right track.

I know the words “business plan” scare most of you (except the MBAs). And yes, we’re going to go through a business plan so you can make your dream a reality. But no, we are not going to do one of those complex Harvard MBA business plans. We’re going to put together a simple five-page (maybe a bit more) plan that will provide the framework for you when you get off track. One of the most important functions the business plan will serve is to give you an honest assessment of whether your business idea is “viable.” The simplest way to answer that is to ask yourself three questions, “What does my target market want? Are they willing to pay for it? Why will they choose my product or service over anyone else’s?” That’s it. If you read nothing more and want to get to work then those are the questions you must answer.

Here is how you should get “started” on the road to starting and building your own business. First, create a business plan that answers the following questions:

What is the name of your business? This is actually a lot tougher than it may seem. Is your business name going to be what you do? Is it going to be who you are? Or is it going to be an umbrella company under which various other businesses fall? If you are marketing baked goods, then a name like “Priya’s Paranthas” may be the best of both worlds. A name with just the product may work in this case as well since just using your own name will not give the customer a clear idea of what you do. Alternatively, if you decide to be a life coach, having your name in the name of the business may be a great idea since you, your reputation and your personality are the business.

What products and services do you offer? Last month we had you figure out what you could do better than 95% of the population. Use that as your guide in determining what services and products you can bring to the market. My recommendation is that you have more than one product. When people love what you do or what you produce, they will come back looking for “what else” you have. Remember the first time you tried the cheesecake at the Cheesecake Factory? I’m sure you went back again wondering “Hmm, I wonder what else I should try?” Luckily they always have something new for you to purchase.

Will people actually want your product? Is there a need for it in the market? If your product was on a shelf in a department store, would people pick it up? In other words, what is your competitive edge (also know in business terms as your USP – Unique Selling Proposition)? Please note that I’ve really simplified that process of determining the viability of your business for the sake of brevity. This is one area that an experienced business mentor is worth his or her weight in gold. The last thing you want to do is create a business around what you feel is a great product or service and then not have a market that needs or wants your product.

Who is your target market? Here’s how you figure it out. Ask yourself, who are the people out there who are looking for what you are selling and would buy without hesitation? That is your target market!

Who are your competitors? Do you have any? If you’re coming up with the next greatest weight-loss diet, you’ll find that you have a tremendous pool of competitors. When you have too many competitors you should ask, “Is the market over-saturated.” On the flip side, if you’re offering a fairly obscure product like an e-book teaching devout Hindus the medicinal value of organic beef, you may find that there just may not be enough of an audience out there for your product or service. My recommendation is that you find a product or service for which there is a market but that market is not being served as well as it could be, or the market is longing for something better.

What is the vision for your business? How will others see your business? What will they think when they think of your product, your service or your name? Define it now so you have that ultimate vision to work toward. Whenever you wonder what reputation you wanted to create for your business, refer back to this statement.

Where do you see your business in one year, three years and five years? This is goal-setting for your business. I’ve written another article on goal-setting for those of you that are ready to take this stage to the next level.

What values do you hold dear and would like to translate into a business operation? When you are the business, your values will inevitably become an integral part of the business. Be sure to be consistent with your values by holding your clients and customers to the same standards to which you hold yourself. If you value money, for instance, then be prepared that your clients will be similar. If you are trying to get the most money out of your clients, be prepared that your clients will try equally hard to save their money. But maybe you offer career coaching where you teach your clients how to free themselves from the bonds of corporate life and away from the worship of the almighty dollar. Here, what you are bringing to your customers is in sync with what you yourself desire and value. Does your company have to be consistent with your values and what you believe? No, not necessarily, but you will find that your passion for the business will quickly fade away if your values and the values of your business are not congruent.

What are your milestones for success? Set benchmarks so that you will know you’ve achieved a particular level of success. As business owners we often keep striving for more without ever realizing what we’ve already accomplished. Having these success markers in place will give us concrete confirmation that we in fact have achieved success and will further allow us to bask in it before moving to the next level. This measurement can be number of clients, gross revenues, a write-up in the New York Times, etc.

How much will it cost to start the business and keep it running? Make a realistic estimation of how much it will cost to start the business and how much to keep it running. You would be surprised at how many businesses can “realistically” be started for under $1000.00.

Are you going to be the business or are you going to create something that you can sell at some later point? Do you want your business to continue even after you’re gone? A great book to read regarding this question is “The E-Myth Revisited” by Michael E. Gerber.

There’s an ongoing learning curve when running your own business and that is what makes it exciting and makes us excited to be involved in it. Getting started is more daunting than it is difficult. If you give it the love and attention it needs to grow and apply good business sense at every stage, it’s going to be hard to avoid success. But guess what? What you know and do today will seem simple tomorrow. Remember, you never master business; you are always learning. It can be an absolute adventure if you learn to enjoy the twists and turns and accept them as challenges instead of obstacles.

2008 Copyright Sameer Kumar Productions. All rights reserved.

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