| One of the biggest struggles I had in starting my | | | | disposable income on like bowling, paint ball, golf, etc. |
| business was actually coming up with the idea. I | | | | Anything that people do in their spare time. |
| wanted something that was scalable as well as | | | | Further, some competitors are ruthless. Meaning that |
| needed in our society. I combed through hundreds of | | | | if you promote and offer a product that is similar to |
| ideas before settling on my current venture. Through | | | | theirs but at a lower price, these competitors will just |
| this discovery period, I uncovered what I believe are | | | | lower their price to match or beat you. If they are |
| the five most important concepts in determining what | | | | already established businesses – they may be able |
| makes the perfect business idea. | | | | to undercut your price enough to drive you out of |
| So, what is a perfect idea? Each individual | | | | business. |
| entrepreneur has their concept of the perfect | | | | If you don’t know your competition – what they |
| business. While Google is a great business for the | | | | are willing to do to keep you out of their market – |
| founders of that company – it may not be a great | | | | you may be spending more of your time in a pricing |
| business for others that are non-tech savvy or who | | | | war then growing your business – not the perfect |
| do not want to run such a large organization. | | | | business idea. |
| Therefore, each perfect business is defined by the | | | | Number Four - Cash Flow: Lots of entrepreneurs |
| business owners. Keeping this in mind, let’s start | | | | enter the business world with great ideas but very |
| on my five concepts of finding the perfect business: | | | | poor understanding of the capital it will take to get their |
| Number One - Understanding your customer: This | | | | venture off the ground. Most will prototype their |
| might seem strange to start here as how do you | | | | product or service and understand what it takes to |
| know your customers before you have a business | | | | make the product or provide the service but they |
| idea in place. The answer is simple – your | | | | don’t understand the capital it takes to manage the |
| customers make the business, therefore without | | | | rest of the organization – including marketing (very |
| customers there is no business. If you have a | | | | expensive but extremely necessary), employees |
| business idea don’t try to develop the idea around | | | | (more than just salaries or wages), insurance or |
| what YOU think potential customers will like or need, | | | | supplies and all the little miscellaneous expenses that |
| but find out what your customers actually desire. | | | | add up very quickly like phone, internet, computer |
| Too often business owners get an idea in their head | | | | services, etc. Knowing your total cash flow will help |
| and jump right in with both feet. However, they soon | | | | ensure that all of your costs (variable and fixed) can |
| find out that their target market does not want what | | | | be covered by the business – the perfect business |
| they are offering. Spending both time and money on | | | | idea. I have seen way too many businesses with |
| a project just to see it languish is not the perfect | | | | great products fail because they could not cover |
| business idea. | | | | simple expenses like rent or utilities. |
| Moreover, let’s say you don’t already have an | | | | Number Five – You: Know who you are. Know |
| idea – getting out and understand consumers (those | | | | your strengths and weaknesses. Know that you are |
| who will eventually become your customers) may lead | | | | ready, willing and able to do what it takes to make |
| you to the perfect idea. Knowing what potential | | | | your venture a success. I have worked with many |
| consumers need and building products to meets those | | | | business owners in the past that think all they have to |
| needs will get customers beating a path to your door | | | | do is hang out their shingle and they have it made. |
| – that is a perfect business idea. | | | | Thus, when it comes down to actually running the |
| Number Two – Passion: Passion here does not | | | | business day-to-day – they are unwilling to invest |
| mean being fanatical about your product or service. | | | | the time, energy or money necessary for success. |
| But, it does mean having some interest in what you do. | | | | Thus, know how hard you are willing to work. |
| More times than not, you will be spending 15 to 18 | | | | Moreover, know your personal financial situation and |
| hours a day working on your business in the beginning | | | | what you need the business to generate to cover |
| – usually for the first 12 to 18 months (more like 2 | | | | your lifestyle. If you think your business will pay you a |
| years in this economy). You have to constantly be | | | | great salary from day one - it will not. And, if you |
| thinking about ways to improve and grow your | | | | need it to, it is not the perfect business idea for you. |
| business as well as be out talking about it to everyone, | | | | Take away outside distractions like your personal |
| everywhere. If you end up starting a venture that you | | | | financial situation – get those in order – thus, |
| don’t have passion for, something that does not | | | | when your business concept does materialize – you |
| make you jump out of bed each morning, it will be very | | | | will be able to solely focus on its conception and |
| hard to put in the hours and energy to make it | | | | growth. In the end providing you the financial security |
| successful – thus not a perfect business idea. | | | | you are seeking - it will be the perfect business idea. |
| Number Three - Understand Your Competition: | | | | Regardless of the level of your desire for your |
| Every business has competition – either direct or | | | | business – a lifestyle mom and pop operation or a |
| indirect. Think about movie theaters. They have | | | | multi-national conglomerate – if you develop a |
| direct competition from video rental stores or at home | | | | business idea with these five concepts in mind – |
| television. They also have indirect competition from | | | | your idea will be the perfect business idea for you. |
| any other activity that consumers spend their | | | | |