Business Concept Reality Check
Before you get too far along fantacizing about running a thriving new business,
I suggest you stop for a few minutes and let me help you conduct a bit of a reality
check.
In the table below, I've listed the nine most commonly occuring business categories that
business ideas fall into.
For each business category, I list the most important success factors for the respective
business category.
I've collected these success criteria first hand from coaching more than 4,000 new entrepreneurs
over the past nineteen years.
You most likely have a couple or more tentative business ideas rolling around your head.
Check out my reality success factors for all of the business categories you're considering.
BUSINESS CATEGORY |
SUCCESS REALITY FACTORS |
| Product Manufacturing |
Need access to $500,000 or more. Need a very
well-defined niche and
connections to key distributors. |
| Wholesale Distribution |
Need access to $500,000 or more to build inventory. Need a top notch
sales force. Need to offer sevices manufacturers don't want to offer. |
| Industrial Distribution |
Need access to $500,000 or more for inventory, spare parts, etc. Need strong
connections to large users and cost-efficient reorder system. |
| Retail Food Business |
Need access to $100,000 or more. Need experience planning menus, buying
food components and managing staff. Need to become a "hot spot". |
| Traditional Retail Store |
Need access to $100,000 or more. Need strong relationships with suppliers. Need
a very imaginative traffic-building program. Need to know how to manage employees. |
| Web Store |
Can usually start for less than $2000 (not counting inventory). Must find a product
category not already well represented on the Web. Must build a very user-friendly
website. Must give outstanding customer service. Must use a multitude of ways to build
traffic to your website. |
| Personal Services |
Can usually be started for less than $5000 (not including 3 months or so of your
salary). Need to find a service not over-represented in your local area. Must use various
techniques to build word of mouth promotion of your business. Must accurately calculate
how much time it takes you to deliver each service and price your services appropriately. |
| Business Services |
Can usually start for under $10,000 (not including 3 months or so of your salary). Must
have a plan to find help as you grow so as to continue to give outstanding customer
service. Must start with hundreds of prospects and always look for new leads. Must offer
something larger competitors don't offer. |
| Consulting |
Can usually start for under $5,000 (not including 3 months or so of your salary). Must
be very clear on exactly what advice you are exceptionally well-qualified to offer. Must accurately calculate
how much time it takes you to deliver each service and price your consulting services appropriately.
Must continually educate yourself in the "latest and greatest" in your specialty. |
Use The Quickest, Most Professional
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