How to Find Your Business Niche

So you've determined that you have what it takes to start your own business. The next critical step to making your dream a reality is to find your niche and determine the feasibility of your idea. For instance, will you be taking over an existing business or do you have a marketable skill/new product idea that satisfies a need?  Don't be fooled - many people have mistakingly launched a business because it sounded like a good idea. But getting into the right business at the right time is easier said than done.  So before you blindly plunge into a business venture, fully evaluate its potential before investing your time and money.

Take the time to identify and briefly describe the business you plan to start. Then ask yourself the following questions to help determine its feasibility and/or potential for failure:

• What products or services do you intend to offer?
• Does your product or service satisfy a need?
• Will your offering serve an existing market in which demand exceeds supply?
• Will it be competitively based on quality, price or location?

If you answered 'yes', you're probably on to something. If not, keep digging until you come up with a solid, viable idea.  Remember - your ultimate goal is the long-term, sustainable success in your business.

Are You an Entreprenuer? (Part 3)

As we wrap-up this three part self-analysis, remember that certain skills and experience are critical to the success of a business.  Fortunately, you can hire the necessary personnel to supplement any skills and experience you lack. But in some incidences you will need some basic and special skills for your particular business.  (For instance, you can't own a law firm without being a trained, licensed attorney.)  Answer the following questions to help you identify the skills you possess and those you need.

Personal Skills and Experience

• Do you know what basic skills you need to have a successful business?
• Do you possess those skills?
• When hiring personnel will you be able to determine if the applicants' skills meet the requirements for the positions you are filing?
• Have you ever worked as a manager or supervisor?
• Have you ever worked in a business like the one you're looking to start?
• Have you had any business training in school?

Your answers aren't necessarily deal breakers to making your dream of owning a business a reality.  If you discover you lack the basic skills to owning a hair salon, web design or accounting business, are you willing to delay your plans until you acquire the necessary skills?

Are You an Entreprenuer? (Part 2)

Earlier we looked at some of the personal characteristics required for going into business. Some of your answers were probably eye-opening, encouraging and even disappointing.  Trust me - that information will help you.  For instance, if you're not happy with your answers, think about how you can address these challenges.  Learning to overcome challenges is actually one of the exciting lessons of owning a business!

There are a number of personal conditions of vital importance to the success of your business, too.  In this next group of questions, we'll cover some of the physical, emotional and financial strains you may encounter. 

Personal Conditions

• Are you aware that running your own business may require working 12-16 hours a day, six days a week, and maybe even Sundays and holidays?
• Do you have the physical stamina to handle the workload and schedule?
• Do you have the emotional strength to withstand the strain?
• Are you prepared if needed to temporarily lower your standard of living until your business is firmly established?
• Is your family prepared to bear the strains?
• Are you prepared to lose your savings?

As a business owner, you will need to up to these personal challenges if your business is to be successful.  Do you have what it takes?

Are You an Entreprenuer? (Part 1)

Successfully operating a business depends on more than just having a practical plan based on a solid foundation, dedication and sacrifice in order to reach your goals, technical skills, and basic knowledge of operations (i.e., management, finance, record keeping, and market analysis).  Before starting your own business, take the time to evaluate your skills and willingness to take for risk.

To get started, check out my posts on the potential risks you'll encounter while in business and how to consider your reasons for starting your own business.  You should also conduct a self-analysis to see if you possess the personal characteristics required to go into business.  Today, we'll begin a three part self-analysis by looking looking at you, the individual.  In my next postings, we'll expand this self-analysis checklist by delving into the personal conditions, skills and experience that you'll need. 

Personal Characteristics

• Are you a leader? 
• Do you like to make your own decisions? 
• Do others turn to you for help in making decisions?
• Do you enjoy competition?
• Do you have will power and self discipline?
• Do you like people? 
• Do you get along well with others?
• Do you plan ahead?
• Do you get along well with others?

Remember, your future is at stake!  So be sure to give these questions some serious thought.

Business Owner Risk Assessment

People go into business for a variety of reasons.  But finding one you feel comfortable with is an important and time consuming process.  It's true that you'll need to consider your capital and staffing needs, time requirements, resources, location, etc., but you should learn everything you can about your potential business. That background work could save you from financial ruin.  For instance, if you're thinking of opening a restaurant, be sure to attend food conventions, talk to other restaurant owners, work behind the scenes, and discusss your menu ideas with potential customers. 

But this is just the tip of the iceberg.  As a business owner, you'll face a number of risks and other responsibilities of equal measure.  Did you know:

• If you need financing for your proposed business, you will have to provide 10-50% (or more) of the total funds?
• In order to get a business loan you will be expected to personally guarantee its repayment?  And yes, that means putting your house, car, and other possessions up as collateral.
• It's normal for a small business not to earn a profit in the first two years?  What sources of income or savings can you use to survive on until your business becomes profitable?
• The number one reason that small businesses fail is because they lacked sufficient working capital to survive the first few years of operation?
• The IRS can and will seize your personal and business assets to satisfiy your business taxes?

These are just some of the crucial factors to consider before beginning a new business venture.  So look before you leap!  Do your homework and undesrtand what you're getting into.

What are some of the risks, sacrifices and/or needs that you've discovered while evaluating your business idea?

BOOK REVIEW: Web Marketing All-in-One Desk Reference for Dummies by John Arnold, et al

Are you looking to establish a Web presence, but don't know how to do it?  (I'll let you in on a secret: having a static Web site isn't enough.  You will need to 'work' your online presence, just as you do your business.) 

If the thought of being online is overwhelming, then check out Web Marketing All-in-One Desk Reference for Dummies (by John Arnold, et al; Wiley Publishing, Inc.).  While it looks daunting, it's actually packed with useful, practical, step-by-step information to help you understand online marketing, master search engine optimization, crack the social media clique, and track your performance. You'll also appreciate the $25 Google Adwords gift card to help you start attracting customers to your site.

In eight "mini-books", Web Marketing All-in-One Desk Reference for Dummies covers:

How to Identify Your Reasons for Starting a Business

You'll need to address a number of issues when testing the feasibility of your business idea and determining if you have the moxie to be a business owner.  One important step will be to identify your reasons for going into business.  As part of that self-assessment, ask yourself why you want to own your own business.  Are you looking:

• for freedom from a 9-5 daily work routine?
• to be your own boss?
• to do what you want, when you want?
• to improve your standard of living?
• to escape the boredom of your current job?
• to bring a product or service to market that you feel is in demand?

Of course, none of these reasons are wrong.  Some may not apply to you; some may be better than others.  Just remember that whatever your reason, there will be trade-offs.  For instance, while you may escape the  9-5 rountine, will be you need to work nights, weekends, etc.?  (I don't know too many business owners who don't.)

So, I'd like to hear from you.  What reasons do you have for starting your own business?

Welcome to DesignedBiz!

Here's a question: Are you like millions of out of work Americans struggling to find a job?  Well, if you have a marketable idea or talent that can be turned into business, now might be the time to make that dream a reality.  Trust me, as crazy as it may sound, you won't be alone your journey. That’s right: as America’s unemployment rate has skyrocketed in the last two years, the number of self-employed has actually increased.  According to the National Association of the Self-Employed (NASE), self-employed businesses have grown faster than all other segments of the business population, contributing close to $1 trillion to the United States economy in 2007 alone.

As we begin a new year, countless individuals are re-evaluating their career choices and many are considering futures they can have more control over.  And while it isn't exactly ‘easy’, starting your own business isn't as complicated as it may first appear and there is no better time to start than right now.

But how do you get started?  What do you do?  And if you already have

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Book Reviews

Arnold, John., Lurie, Ian., et al. (2009). Web Marketing All-in-One Desk Reference for Dummies. Indianapolis, IN: Wiley Publishing, Inc.