A New Series on Business Startups — Part 2

Now that you have decided what kind of business person you are, and the general area you’d like to tackle, the next step is to select a business and get started.

First, let’s consider business types in a broad brush way. Essentially there are five sorts of businesses :

1. Making something (manufacturing)
2. Doing something (services/sales)
3. Fixing something (repairs/maintenance)
4. Creating something (crafts/arts/writing/photography)
5. Moving something (transport/removals).

If one of those immediately jumps out at you, you’ve found your compatible business area.

The next step is to break it down further into niches that particularly interest you.

The Venture Concept
When you’ve hit on an idea that sets your pulse racing, you next need to define the venture concept in more critical terms. Does the enterprise have any particular conditions calling for special attention? It’s rare to find any venture that doesn’t. For example, does it require action arising from :

* Special expertise required.
* Difficulties in marketing a product or service.
* Peculiar conventions in the industry.
* Technicalities.
* Specific tradesmen or professionals needed.
* Shelf life of products, e.g., refrigeration required.
* General regulatory regime.
* Specific legislation.
* Difficulties in generating business (closed shops).
* Current market conditions.
* Geographical considerations, e.g., importing bananas.

It is said that this conceptualizing stage takes up 5% of time in the pre-launch stage. In my view it take much longer : 10-20%. Don’t neglect this aspect of your business plan, or you’ll need to do it all over again if you hit the buffers, costing time, money and heartache.

It’s a good idea to note down all the ideas and decisions accumulated in this process, as that will :

* harden your knowledge of the concept
* remind you of what you’ve already discussed
* provide a list of contact names and phone numbers
* and give you a blueprint to work from at later stages of the operation.

You can’t have too much detail at the outset of any project. What you know now will determine the course you take. Too little knowledge and you’ll almost certainly make a number of false turnings.

Remember, the deity is in the detail.

Go to Part 3.