You’ve decided to go ahead. That idea that you’ve been throwing around your head for days (weeks, months) is dying to get out. You are going to launch your venture. Congratulations. Now, what?
First, you need to develop a plan. (Yes, you really do!) And, as we’ve stated over and over again, it need not be a 200 page tome, but it must provide five things (at a minimum) and address the 3 C’s (see www.cerebrations.biz/?p=2826 for a refresher, if you need it).
And, now that you have a plan- can you start this alone? If not, you need to develop a team. Determine your weak points (be serious) and insure that your team members (or co-founders) fill those needs. Where do you find these folks? Here’s where your network comes in handy. They may already be part of your network- or you may need your networking partners to provide an introduction. Don’t decide right away, either. You don’t get married in a day (really? You do?)- and you don’t partner without having the framework and expectations clearly defined. Make sure whoever is on your team gets input into the plan and buys into the whole concept. (Just like getting married!)
Now, you need to determine how much money your new venture needs. Assume your plan falls 30 to 90 days shy of expectations. That’s the bare minimum of cash you will need. (I originally linked to the Wall Street Journal startup calculator; it’s been removed. So, you will have to use the SBA [Small Business Administration] version of the calculator.) Do you need a location? Or, can you start running the entity form your home? An office or store requires more money. Settling for a site that is not adequate can doom your concept from the start (especially, if it is a restaurant). (By the way, sometimes choosing a location contiguous to your competitor- if what your offer is really better and cheaper- can help. Their marketing efforts can drive customers to your place, too.)
Now that you know your startup costs, do you have those funds on hand? Can you borrow the sum you need? Make sure you can get your company has the chance to take off, before it runs out of fuel. (If you don’t, a competitor may notice your buzz, latch onto your idea and make a success of it, before you have a chance to regroup.)
You’ve got your plan, your team, and your location. Now, choose your first customers. You need them to be key tipping points, able to provide you with feedback, and serve as legitimations of your concept. Again, here’s where your network comes in. Seek out those you can help propel you and your plan- and they gain benefits from your concept, as well.
Now, your off to the races. Don’t forget to monitor your progress and adjust your efforts to reflect the realities you confront.
Go, get ‘em!
I think the place most people fall short is estimating their start-up costs. Especially online, I see so many thinking they can do it with little or no money. That’s just not the reality. You have to have money to begin and money to grow. It’s amazing to me how many people don’t get that part of business!
And, it gets worse if the concept is a full-fledged venture (and not a web-based side or additional business). The estimates as to when income comes in are always off. One of the key failures is that selling B to C means there is an account receivable. So, expecting sales in X days means you can’t expect funds until X+30 or 45. And, then there’s the cost of making new product for sale the next month!!!
It’s easier when the product is a PDF. It’s almost as hard if the product is a real book!
Thanks for the comment and additional insight, Martha.
Roy
If a team is needed, creating a solid group of members seems absolutely key to a business. You’re so right that it’s as serious of a commitment as marriage and the other team members need to be on board in terms of responsibility and contribution. I love the idea of balancing out your weaknesses with other team members. To add, I imagine that the strongest team consists of members who share the same professional vision.
Samantha Bangayan recently posted..The Sea of Nonconformity- A Poet and Capoeirista in Huancayo
It’s called hindsight! Both in marriage and in business partners. The trick is to learn ONCE!
Thanks for your amplification on the topic. Another point of view always makes it easier for folks to understand.
Take care.
Roy
Really love the way you put this all together Roy. Most do start with a plan in their head or on paper, but it is the implementation that counts. Taking action. I see so many up-and-coming businesses fall short due to lack of consistent hard work in building their business.
They start off bold, excited, energetic and ready to take on the world. Then weeks pass and when they don’t see any sales or income, it is as if the wind was taken right out of their sails. You start to notice they are no longer on Facebook, they start neglecting their blogs, stop writing articles, no longer make videos and essentially start making excuses.
Those that can follow a plan like you have written here, will find success if they work smart, word hard and can see their dream in front of them.
Lynn Brown recently posted..Three Important Areas to Double Check Your Blog
Lynn, thanks for rounding out the message! May all our dreams be worked through to reality!
Roy
Hi Roy, you would think that everyone has a plan before they start out. It’s like a road trip where you would plan how you would get there – not having one is going to get you there but it could probably take much longer and costs more. Many people feel that a plan has to been a super long document and that’s what is overwhelming. Monitoring and gauging your progress is essential and gives you an indication as to how you should move forward.
Diana Simon recently posted..What’s Your Specialty
As the statement goes- if you don’t plan where you are going, how will you know when you get there? And, that’s the key point. Folks who coach need to help their mentees find and reach their destinations.
Keep the course!
Roy
Thanks for sharing Roy! I’m glad you pointed out your network. You don’t have to do this on your own and using input is a great way to see if your idea is feasible and see things from a different perspective.
Kristen Robinson recently posted..The Power of Collaboration- Don’t Underestimate It!
Thanks for your comment- and the iteration about feasibility from someone other than oneself!
Roy