| |
| Before You Start that New Business from Colin Duguid MICM |
-
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 the local opportunity
that is now up for sale. The only suitability being locality: you
could probably think of a few more relevant and similar
scenarios.
-
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!
-
If you would please excuse the stereotype, 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 there 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!).
-
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!
© ROK Associates Credit & Debt Management Limited 2000
Get business advice like this directly from Colin Duguid by subscribing to The Credit to Cash Newsletter
Click on the link and send a blank email
|
