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    0 Replies Latest reply on Oct 14, 2009 3:34 PM by Adducent

    "The man who chases two rabbits, catches none"


      "The man who chases two rabbits, catches none"


      That statement is absolutely true.


      To boil it down ... to accomplish anything of importance you have to have focus.


      You can't go in two directions at once.


      Don't try to chase "more than one rabbit" at a time! And perhaps just as important "find out how to chase a rabbit you can catch"!


      Elsewhere on this site you'll find a post from me about "7 Steps To Find The Right Business". In that, I talk about how the most important thing to do first is to figure out what the "right" business is for you. You might want to find that post and read it as I think it would be helpful to you. If you want to be your own boss and have your own business; I believe that the starting point is to determine what type of business best suits you that you can make money at.


      Finding the right type of business to start should be your first focus.


      Having over the course of many years started, bought and built up a number of businesses ... I absolutely know that having your own business can be rewarding. But it is a challenge and it comes with risks that you have to prepare for and be aware of. Once you know what business direction you are going in, the best way to launch it is to lay out a plan (both for yourself and your business idea).


      Here is a quote from Goethe, I have on my corporate and publishing company website that says something important for you to read and learn from:

      "I respect the person who knows what they wish. The greatest part of all mischief in the world arises from the fact that most do not sufficiently understand their own aims. They have undertaken to build a tower, and spend no more labor on the foundation than would be necessary to erect a hut." ~ Goethe


      This is true on so many levels of life. I have seen many business owners fail, and many succeed. Often the basis for both drives back to their preparation (or lack of) early on. You have to plan and prepare when you want to start or buy a business. It is too important to short-cut or not do!


      If you plan to start a business ... figure out a way to get into that business in such a way as to not take on a lot of expense and overhead that will put you under a lot of pressure to support. Again, make that your focus ... don't base your dream of having your own business on needing to raise a lot of money to get it started. If this is your first business, unless you have rich relatives to put up the money, chances are you are going to have a very hard time finding enough money to start your business.

      Especially with current economic conditions and the state of the credit markets.


      Instead of running the risk of getting frustrated in your pursuit of your own business ... start with a plan that minimizes the chance of "dead-ending" (your efforts failing because you could not find the large amount of money you thought you needed).


      You can have big dreams but need to start with something that allows you to get to what many investors call the "proof of credibility" as soon as possible. That's the point where you have established that there is a market for your products and/or services and that you are able to generate some revenue from the sale of those products/services ... you've begun to "prove" your business model and that you can make it work. Most investors want to see that achieved before they will consider you as a viable investment candidate.


      A an example, if you are starting a retail business, perhaps you can do a "kiosk" type of location at that mall or something similar and at low expense. Or even "co-locate" your business with a complementary business (maybe a shop or store that carries products that your target market is also interested in). If possible, focus on a niche product line so that you become a source for people to go to (a destination and not a business that they just "happen" upon while shopping) and develop a loyal customer base.


      If you are starting a service business, start small and work on getting referrals from people you know; perhaps even from the company you work for. Many entrepreneurs discovered that the company they worked for became a good "first customer" to set the foundation of their business.


      The point to this is to make your initial steps into your business profitable or at least make them the least expensive to you as possible. In my experience when new business owners are "generalists" i.e. they sell products or services in broad categories ... they need a lot of money for marketing to drive volume to their business.

      Often it is better to specialize, develop word of mouth traffic to your business - work the kinks out of your concept and process before you spend money on expensive advertising or other large cost-drivers or try to broaden out into other areas or products that are going to require you to have a large amount of capital to draw on.


      So before you rush to a decision on a business to start ... begin planning what type of business is the best or right one for you. Find out what makes good business sense for you. Don't assume that the only business you can start is one that requires you to find a lot of capital to get it rolling. Look at other options and think things through before you start spending any money or before you build a plan that is centered on finding a lot of money to bankroll the business.


      If you plan and have focus you may find that you can start with what you have, and begin to build your business and make your dream of self-employment come true.


      Dennis Lowery
      Adducent, Inc.