Right product – right service
Choosing what product or service your new business will sell
is all too often a 'knee jerk' reaction and not a careful consideration
of the facts.
Why? Because you will, quite naturally, start a business about
something you are doing at present: be that you are currently
employed by a company (and you want to branch out on your own
with a similar product or service) or you have agreed to join
a friend or family into a new venture that you are not 100%
sure about.
The problem with either of these new business entry routes
is whether or not you will be able to use your personal strengths
and business experience to the full: day in, day out.
Having a few customers and contacts from your old firm is
a traditional route to a new business, and is of course a good
reason to be hopeful. But, if you asked yourself what type
of business you are best suited to start, it is unlikely that
you would always choose the business you worked for as an employee.
Another way into business is buying a local business that
is up for sale: buying a business is a delicate process so
be well prepared.
Most successful small business owners and entrepreneurs would
be successful in a number of different businesses that they
had no real knowledge or experience of. Why? Because they have
a broad understanding of all aspects of business, they have
total commitment, sufficient financial understanding, and play
to their strengths in their daily dealings: of course, if they
once sold vacuum cleaners and they worked for Hoover in the
sales and production departments, what a bonus!
The tale goes, that if an English and Asian person wanted
to start a retail business in their local town, the English
person would walk down the high street, see that their was
not a local shoe repair shop (and they having been a shoe repairer)
would open up a shoe repair shop. The Asian person would walk
down the same high street, and on seeing two newsagents they
would open a third newsagent.
The new newsagent owner knows that there is a need for a newsagent
as two have survived. They also know that if they can give
a better service than the other two newsagents, one, and possibly
(hopefully) both of them would have to closedown: with the
new newsagent buying the goodwill (the other newsagent had
better watch out!).
Another way of seeing this: why will your business do better?
For example, if you plan to open a local shop in a competitive
area, if you can't beat competition on price, how else can
you do it? Could you provide excellent customer service and
encourage customer relations to pull in customers? That should
get you starting to think.
So what should all this tell you? Understanding what makes
you and a business tick, together with not underestimating
the culture associated with small business ownership are essential
to a business being successful: not continuity of experience
and knowledge. Some of the greatest gardeners have lost their
life savings on a nursery that turned out to be an oasis; a
20-year British Gas veteran lost his house due to that gas
fitting business going bang; that great salesman who sold ice
to the Eskimos could not compete or sell ice cream in his local
town.
Finally, have you thought about the company that employs you
at present? Is it possible that the reason you feel you can
go into competition against them is because they have lots
of business, happy customers, great work colleagues and a growing
business? If so, add to the above list the fact that your boss
is a natural business owner in his chosen element, and you
have not seen the boss defend his territory, yet!
| 
