If you started a businesses because you hate your boss and after six months you still hate your boss…seek professional guidance!
Risk: High
Satisfaction:
High
Major Challenge:
Ramping up sales
Starting a business…especially for the first time is, quite
frankly terrifying. People start
businesses for a variety of reasons.
There are two groups of commonly cited reasons for taking the plunge. One group centres on money, the other on
frustration.
Many business start-ups come about as a result of
unemployment or underemployment. My
father started his business during the depths of the recession in the eighties
because the firm that employed him went out of business. His former clients actually phoned him;
they needed his engineering expertise. You could say that they started the business
for him!
Immigrants often start their businesses for similar
reasons. They possess a skill set, but
may not be employable. The alternative
is to start a business. Amazingly few
people start businesses, especially first time businesses with the goal of
getting rich. They are really hoping
that the business will survive and that they can actually support themselves.
The second group are the ‘corporate refugees.’ I started my business when a client offered me
a contract. The truth is that I never
really ‘fit in’ to the larger corporations for whom I worked. I was lucky, I had some great bosses, but
others tell me that the reason they quit is that their boss was so bad that
they couldn’t stand working for him or her.
Everything seems new when you first start out. You work hard to impress your clients,
especially those early larger clients on whom your business really
depends. Many businesses do not make it
past the first year. They can’t ramp up
quickly enough, they can’t make a profit or the business many not have been
viable in the first place. Many survive
but are not sustainable.
The Year One Challenge: From Need to Demand
Demand = Need + A
Visa Card
There is an
enthusiasm that comes with the start-up.
Most people start with the expectation that the world will love their
product just as much as they will.
Unfortunately, that is not the case.
Many people are unable to make their case to their potential customer. I have heard many business ideas that
sounded almost perfect. There was a real
need for their product or
service. Unfortunately, there is a big
difference between need and demand.
As business planner I have some bad news for you…there is
almost no way to discern between need and demand when starting a business. I tell my students and clients that their
first year in business is their final step in market research. My dad knew that there was demand because his
clients found him. Others aren’t so lucky.
One of my seminar participants started a business providing
credit and collections services for small and medium sized businesses. During his market research he called
businesses, explained his concept and asked if it was the kind of service they
might need. Everyone he called was
enthusiastic about his service. He
started the business and had no clients for six months. Those he spoke with needed the business, but
they didn’t demand it…they didn’t see the need to purchase.
Your first year is a roller coaster. It is tough, but exhilarating at the same
time. If you can fight through and
achieve success by the end of the first year, it is one of the greatest
accomplishments you can make. Then, you
are ready for year two…development!
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