July 15, 2010

Are You Starting The Right Small Business? Part 2 of 3

Business Rule# 5- Business Idea vs. Business Goals
The purpose of business rule #3-Define Your Purpose is not only to figure out if you are starting the right business but it can also help you figure out if your business idea is congruent with your business goals. If your business goal is to achieve financial success, you probably don't want to start a business that only have the potential to allow you break even and not profit. It is imperative that you take a close look at what it means to be financially successful. In order for your business to be successful the job must be able to cover your personal and business financial needs. Start thinking about the profit your business will have to accumulate in order to cover those expenses. Will your product or service generate enough funds to cover your financial needs?

Other questions to consider:
  •     Is there a need or market opening for the product or service you plan to offer?
  •     Could your dreams manifest into an actual business that will be capable of surviving, thriving and  being profitable?

 The key here is to figure out if the business idea that you have 'gels' with your business goals and personal needs. Your objective here is to minimize your three business ideas down to only one by breaking down what your business goals really mean and if your business idea can help you achieve your business goal. If your business idea doesn't 'gel' with your business goals and personal needs, this allows you better choose the right business for you. Below is an example of Business ideas and how they relate to common business goals.
Use this as a guide when examining if your business idea supports your business goal.

 Business Goal-Creative Control:  If your business goal is to start a business that allows you to have creative control then you are more likely to start a business that focuses on creativity. It wouldn’t be a good business idea if you started a business that severely limited your creative abilities and wouldn’t be supporting your business goals. 

Starting a web designing business allows you to have creative control over client projects with limited direction. A web designing business works well with a business goal to have creative control but to be successful you must research thoroughly what having creative control mean. You must have a complete understanding of the limits to your creative control during projects. Knowing the market and understanding the current trends is very important in web design. A lot of time will be spent trying to keep up with current trends, so how much time of your time will be truly spent on engaging in the creative aspect of the business? Researching and defining what having creative control means allow you to eliminate business ideas that don’t coincide with your business goals.

 Business Goal-
For the Experience: A lot of people start their business for the purpose of their type of lifestyle. They are called 'Lifestyle Entrepreneurs' and their entire purpose is creating a business as a means to support their lifestyle. They do not go into business for the objective of creative control or management but as a means to support their lifestyle. It's best to start the type of business that will not bind you to a 40+ hour work week.

 Starting a part time business giving piano lessons, allows a productive part time business that will still cater to your lifestyle. A part time piano teaching business obviously satisfy the goal of going into business for the experience but in order to make sure starting piano lessons is enough to support your lifestyle you have to do your research. You would research if your area has a market for a piano teacher and if you could accumulate enough clients to sustain your business.

It is very important that you understand what your needs and goals are and how it works with your business idea.
Are You Starting The Right Small Business? 

No comments:

Post a Comment

Did you find SmallBiz Stew to be helpful?

My goal is to discuss topics that will simplify the intricate parts of starting a small business to help alleviate some of the stress that’s associated with small business start-up. Did you find this information to be helpful, if so then please donate. Any amount is appreciated.