Choosing A Business That's Right For You

- Samuel J. Before I answer your question, Samuel, I'd like you to reach around and slap yourself on the back for not allowing your eagerness force you into making the wrong option. Too frequently, as entrepreneurs, we allow our impatience to push us to make mistakes we later regret. In business, haste can be extremely costly.

I always relate establishing a business to diving into a pool of icy water. There are usually two categories of entrepreneurs who take the jump.

The first are called "Toe Testers." These are the cautious people that simply dip their big toe into the pool to test the temperature. The expression "testing the waters" originated with these cautious entrepreneurs. Toe Testers enter the business pool gradually, a little at a time. Toe Testers teach us to start carefully and not feel compelled to jump right in. Gradually ease into the business pool to ensure that it is good for you. Remember that many entrepreneurs only discover that the business sector isn't for them after they've gotten themselves into deep trouble. That's when the phrase "sink or swim" takes on a completely new meaning.

The following type of entrepreneur is the "High Diver." These are the fearless people that climb the ladder and leap headfirst into the business pool, unconcerned about the depth of the water or the hazards lurking beneath the surface. The phrase "damn the torpedoes, full speed ahead" originated with these entrepreneurs. These entrepreneurial daredevils frequently drown in unknown waters or bury their heads in the pool's bottom. Both entrepreneurs may succeed, depending on how well prepared they are for the waters they are venturing into. Here are a few tips to help you prepare for the plunge.

- Allow your experience to guide you. Begin with what you know. If you've spent twenty years as an accountant or enjoy building wooden miniature trains as a hobby, think about how you may leverage your experience into a profitable business. You can also discover a fantastic business idea right beneath your nose. Look around your workspace. Do you observe any unmet needs, or do you know of a better way to do something? If so, you may have the seed of a prosperous business.

- Do what you enjoy doing. I cannot underscore this more. Many people start businesses for the wrong reason: to become wealthy. While it is true that many millionaires in this country built their riches through their own company enterprises, this should not be your primary motivator for beginning a firm. If you don't enjoy what you do, you won't succeed, at least not mentally. Sure, the monetary rewards can be enormous, but the mental misery of working in a job you dislike is a steep price to pay. There are a lot of entrepreneurs who operate profitable firms but are so miserable that they practically make themselves sick. If you don't appreciate what you do, the business will become a chore rather than a delight.

- Don't reinvent the wheel; instead, make it better. Many first-time entrepreneurs believe that to succeed, they must develop a new business idea. That is simply not true. The most successful enterprises are formed out of necessity rather than ingenuity. Instead of attempting to come up with an idea that will alter the world, look around you to see if there is a hole that needs to be filled or a company model that needs to be improved.

Many successful businesses have been formed by improving on old business models. Domino's Pizza was not the first to provide home delivery of pizza, but they were the first to guarantee it will be piping hot at your door in 30 minutes or less. Amazon.com was not the first company to sell books, but it was one of the first to allow you to buy books from the comfort of your own home while wearing only your underpants.

- Concentrate on one niche. Many businesses have failed because they tried to be everything to everyone. The capacity to sell a billion things under one roof is great for Wal-Mart, but not for most new small enterprises. Try to establish a niche in which you would enjoy working and consider beginning a business there. If you enjoy working outside, try starting a landscaping business. If you enjoy dealing with numbers, consider becoming an accountant or CPA. When was the last time your gardener did your taxes? You get the idea. Concentrate on a certain niche and become an expert in your subject.

- A franchise may be an option. Many prospective entrepreneurs contemplate purchasing a franchise rather than starting a firm from scratch. Franchises are a great way to get started because they have already done a lot of the work for you. They have validated the company strategy, created operational guidelines, invested millions of dollars in brand development, and so on. Purchasing a franchise is often a costly and complicated procedure that is beyond the scope of this essay. The best piece of advice I can give you is to thoroughly research the franchisor and the opportunity, hire your attorney to handle the transaction, and read the fine language in the franchise agreement.