Behind
every successful business you'll find at least one
great idea. For most people, the definition of a
successful business is one which is profitable, and
a profitable business is built upon ideas that have
been properly researched.
Here are some steps you
can take to research your idea and turn it into a profitable
business:
1. Make a list of the reasons why you want to go into business
for yourself. Look at your list critically. Does starting your
own business help you realize these things?
2. Make a list of the things you like to do with your time.
Success can be elusive if you're not truly excited about your
business. What are your interests and hobbies? What are you
good at? What do other people say you are
good at? This list represents broad business models which will
give you the greatest joy over time. Decide which item(s) on
your list you would most like to develop into a business.
3. Focus on filling a niche. It is your expertise, uniquely
practiced and applied within your business field, that creates
your niche in the market. Throughout the research stage of
your idea, pay close attention to how your business can fill a
niche.
4. Talk to friends or family who own or work in a similar
business. Get their input on your idea. What needs improved
on? Why should it be improved and how? Talk to business owners
in neighboring towns - so you won't be perceived as a
competitor - and get their input on your idea. These people
will likely have insights you never considered.
5. Participate in discussion forums. This is a great way to
take the pulse of your potential customers. You can also see
trends, get feedback, and establish working relationships with
like-minded people. To find a forum where your target group
congregates, try this directory: http://www.homebiztools.com/discuss.htm
6. Evaluate the demand for your product or service. You need
to understand the pace and direction of your industry. This
understanding alerts you to shortcomings with your idea and
helps you channel your energies correctly. It also helps you
approach your business with innovation and vision.
For a snapshot of demand by Internet users for your product of
service, try the search tool at GoTo.com. It shows how often
people are searching for terms related to your business idea:
http://inventory.go2.com/inventory/Search_Suggestion.jhtml
You should also analyze the available research data. There are
several professional organizations which gather data on a wide
variety of subjects. Here a few starting points:
Annual
Survey of Small and Mid-Sized Business
http://nsbu.org/survey/results/
Nua Internet Surveys
http://www.nua.ie/surveys/
Forrester Research
http://www.forrester.com/
National Association for the Self-Employed
http://www.nase.org/
National Foundation of Women Business Owners
http://www.nfwbo.org/
Fortune Small Business
http://www.pathfinder.com/fortunesb
National Federation of Independent Business
http://www.nfib.com/
7. Research businesses in your surrounding area in order to
size up the competition. Look for ways you can gain a business
advantage over your competitors. Ask yourself how your
business will be better and different.
8. Visit your competitors online. To speed up online searches,
utilize Dogpile's multiple search capabilities. Dogpile
queries the top engines for your search term and returns the
top 10 listings for each.
http://www.dogpile.com/
Another valuable tool you can use to monitor your competitors
is The Informant. This free tool uses search engines to find
web sites fitting your description. Whenever a new site is
added to the top search results they will notify you by email.
http://informant.dartmouth.edu/
9. Define the operation of your business. Here are some key
questions you should answer:
- What skills and experience do you bring into the business?
- What are your fixed costs and expenses?
- How long will it take to make a profit?
- What laws do you need to comply with?
- If you need financing where will you get it?
- Do you need insurance coverage specific to your business?
- What will be the legal structure of your business?
For help with these questions try these resources:
Budget Calculator from IdeaCafe
http://www.ideacafe.com/getmoney/fgr_budget.html
Startup tutorial by the Small Business Administration
http://www.sba.gov/starting/getting.html
Free email counseling from SCORE
http://www.score.org/
10. With the information gathered from the steps above, you
now have the means to begin writing a comprehensive business
and marketing plan. For help in this area try the resources
and software available at:
http://www.bplans.com/
http://www.sba.gov/classroom/bplan914.html
At the root level, the small business owner has a burning
desire to succeed, a "never quit" attitude, and the
ability to attract and implement needed resources. All you
have to do is throw your research and planning into the mix
and you're well on your way to a successful business.
ABOUT THE AUTHOR:
Brett Krkosska provides how-to advice on family and home-based work
issues. Get start-up guidance, business ideas and inspiration at http://www.homebiztools.com/.
Become a subscriber for a fresh and original perspective on
today's business issues: mailto:enews@homebiztools.com
.
