First Time Entrepreneur

The Entrepreneur

You have decided you are an entrepreneur. You are extremely knowledgeable and passionate about an idea or you think you’ve found a way to fill a vacancy in the marketplace. You have come to the conclusion that this is the time to start a business and you are confident that there are profits to be made.

Questions are likely to be swirling in your cranium. Do I have enough money? Do I have the right equipment? Am I getting the best advice?  Where do I start?

Most of the advice that I read about starts off with a business plan.  This is truly one of the best places to start. I would like to put forth refine your idea first.

Refine You Brilliant Idea

You know you have a brilliant idea for a business and there are so many directions you can go with your new business.  The biggest obstacle to overcome will be making the business financially workable. Here are a few ways to help you refine your future business.

Look at the competition.  Study your competition by visiting stores or locations where their products or services are offered. Take the time to observe customers, traffic patterns, hours of operation, prices, quality of goods and services.  There is a great book called Starting Your First Business, by Jim R. Sapp.  In his book, he goes into this in more depth. In short, if you do not look at what other people are doing it will be difficult to demonstrate to future customers that you have something that is valuable and unique and thus difficult to refine your ideas into something that is superior.  If you find that you cannot refine your idea into a product or service that can surpass your competition, you may need to let your ego go and think of a better idea for a business.

Find assets.  This may be a supplier, any useful or valuable thing needed, people, or quality resource.  You as anentrepreneur will likely need to talk to suppliers that can tell you a great deal about how the industry your entering into. They will often tell you why some businesses are more successful than others.

Examine the numbers.  We often have this concept that if we just put it out-there people will come.  That is true some of the time, but it is not the norm.  Starting a business takes research, smarts and self-confidence, and without doubt a huge amount of fearlessness. That being said don’t overestimate your sales and underestimate your costs.  But together a spreadsheet that shows how much you are going to have to sell just to break even.  If it is in the red, you will have to retune your plan so that it does results in a positive revenue flow.

Seek counsel from a professional. Counseling, advice, guidance, direction, or information from a veteran business expert is a solid last step to refining your business idea.  The internet, your local library, the U.S. Census Bureau, business schools, industry associations, can be invaluable sources.  There are many states and cities that over free advice.  Take the time to talk to them.  You could potentially get helpful information or research at no cost.  (Just remember to say thank you, you may need to contact them more than once.)

The more time you spend pulling together information before starting your business plan, the less you’ll have to do while writing your business plan.  And honestly, your business plan will likely be refined again in the process of creating it.  Always remember these questions:

• What is the purpose of your business?
• Who are you selling to?
• What are your end goals?
• How will you finance your startup costs?

A well-written business plan answers all of these questions.  All of these questions will be easier to answer if you as the entrepreneur have refined your brilliant idea.