This is the first post in a five part series that covers the five questions you must ask when going into business for yourself. Each of these five questions need to be addressed and adequately answered during your due diligence process. The 5 questions are:
- So what exactly am I selling?
- Who’s lining up to hand me their money?
- What about my arch nemeses?
- What’s the plan, Stan?
- What about the stuff I can’t control?
Let’s examine question #1 in greater detail:
- So what exactly am I selling?
This question asks you to think in great detail about the product or service you plan on offering to the market. Saying, “I’ll sell toys” or “I’ll sell haircuts” is not specific enough. What kind of toys will you sell: infant toys, board games, collectible action figures? What kind of haircuts will you provide: barber services, a full salon menu, cuts for kids? The more specific you are about your idea, the easier the rest of the analysis process will be.
Try to avoid thinking too big to start. Perhaps one day you’d like to run a mega-bookstore similar to Indigo Books & Music (the company that also owns Chapters), but for now you likely don’t have the capital or the reputation to get something that big off the ground. Focus on laying the necessary groundwork so that your business has room to grow.
Start small and get specific. Envision exactly what you’d like to sell, right down to the colors, the smells, the processes, and the price tag. How are you going to source your items? How are you going to deliver your services? These are all questions you need to have the answers for.
When you’ve done some brainstorming, work at condensing your idea into one succinct sentence that explains your business concept without being vague. “I cut hair” is too general. “I make children’s haircuts a fun experience by providing quick cuts in a fun salon designed especially for kids” is much better. Once you’ve come up with a statement that feels good to you, you’re ready to move on to the next question; who’s lining up to hand me their money?
Ronald Lorne Smith
Franchise Consultant
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