Ask anyone who works for a small business and he will tell you he wants to run his own business some day. Many of them have a great idea – or think they have one – and only if they ventured on their own they could become a successful business person. Some of them also think they can do better job of running the business they work for than their current owner.
While the thought of starting and owning your own business is certainly admirable anyone who has tried to do it will tell you that it is not as easy as it sounds. As Chief Everything Officer you will be working on many different fronts at the same time and under tremendous pressure. There is no guarantee that you will eventually succeed after spending so much time, money and effort. So, is there any hope for someone who has the passion to start his own business, but is not sure how to go about it? I think so. Let me explain how.
How does an idea become a business?
In general there are two paths to starting a small business
- Someone who is skilled at something, e.g. making great cupcakes, can build a business out of it if customers like what he /she makes and are willing to pay good money for it.
- Someone who wants to do some business – any business – and sets about finding or building one that he can run.
Both approaches have pros and cons. Starting a business based on your passion and skills will keep you engaged in the business, however you need to understand that running a cupcake business is more than just making cupcakes. On the other hand, starting or buying a business based on your desire to do something may not excite you about what you are doing except for the fact that you will be running your own business. In addition, if you try to buy an existing business you will need to pay premium for the hard work someone else has done of building a business.
Buying a franchise business offers you some relief. You will inherit a system that has proven in the market along with the operational and marketing support that franchisor will provide. If you have never owned a business before buying a franchise is preferable way to start.
A better business approach – consulting
Another, and sometimes better, approach to starting a business is by opening a consulting firm that provides advisory services to other businesses. If you possess skills that have good market demand and can help other businesses solve their issues or grow their business you will be able to build a great consulting business. Businesses are willing to pay consultants as long as they can demonstrate value and provide return on investment.
To be able to succeed in consulting you should look for a niche area that is not penetrated by many companies. This way you will avoid price competition. New niche opportunities continue to arise as a result of changing market conditions or government regulations. You need to be on the lookout for this and have skills that can meet these demands. The key to success is to grab these opportunities quickly and launch business in a short time.
One example of this is the REACH regulation in Europe that requires all businesses to track chemicals being used. This has created a scramble for consultants who possess these skills and can help businesses comply with this mandate. With expertise in this area, a new business was established to consult with companies and has been very successful at providing this needed service – Extractables and Leachables Studies from Bibra.
