Business Alone

In the previous post we talked about turning a hobby into an online business and why it was a good idea to choose a very deep and specialized market niche.

We also said that the subject of the niche was important and that it should usually be a topic that the owner had experience in, knowledge of, training for, and passion about.

Most often, the business owner will be most successful if he can narrow his potential customer pool down to just those folks that have a great and frenzied interest in exactly what the owner is selling.

I think you would be surprised with the number of potential prospects globally, even though the niche chosen seems way too narrow.

I'll admit it . . . I'm a victim.

So are thousands of other would-be entrepreneurs that never start a business because they just can't seem to find the traction to get going.

Sure this is a big step . . . sure there are lots of reasons to begin slowly and not jump into the water that's too deep or too swift until you know how to swim.

Yes, careful planning and thoughtful mentoring will certainly increase your chances of success.

Regardless, the first step is always the hardest!

So many, many people have great difficulty in setting themselves in motion. The reasons are many, of course, but the sad truth is that many dreams fade as the morning breaks because the dreamer can't get out of bed.

Indecisiveness, over-analysis, and the fear of making the wrong move stop many people in their tracks and paralyze them from ever planting and growing their own small business idea.

I sincerely believe that a successful business can be created around almost any marketable idea.

I also believe that every person has hidden away in his/her mind, a potentially profitable business idea that can be made marketable in the right hands.

Your task, as I see it, is to identify the idea(s) that has this great potential and test it to the extent that you're comfortable with it becoming the basis of your new business going forward.

So how do you pull this good business idea from your mind? Where do you go to find it?

Here's an exercise that anyone can do that should help you come up with some great and personalized ideas for the subject of your new online business.

Spend some time and find a niche that takes advantage of the areas of specialty for which you are uniquely skilled or qualified, but which also keep your interest and stoke your passion.

The steps are fairly elementary. I would recommend doing this exercise with your spouse or a close friend that knows you well - that way you'll be able to get a second opinion about your suitability to enter this niche.

In the previous two posts, we discussed a technique for drawing up a very specific list of business subjects that could become the basis of your online enterprise. They are designed to take advantage of your past life experiences, education, skills and passion.

There is a good chance there will be duplicate items on the list. If you find them, cross all the duplicates off so there is only one listing left, but for each duplicate you crossed off, place a star by the one remaining. (For example, if there were three entries the same, you are now left with one entry and two stars by it.)

Now re-list the items from top to bottom in a new list: the items with the most stars at the top, then the next most, then the next, etc.

For all the remaining items with no stars, list them in descending order according to how much you now enjoy doing them, or working with them, or in some way participating in that subject. The entries you enjoy most are ranked above the ones you don't enjoy so much.

Who says Internet business can't be adapted and put to profitable use by a youngster?

Here's an example of a young boy in my neighborhood that has chosen the Internet as his business contact and delivery mechanism.

You may have heard the slightly cynical phrase - "If you can't figure out how to do something on your computer, just find a six-year-old." There's a whole heap of truth to that observation. Anyway . . .

I learned about this kid in my neighborhood, who shall remain anonymous in case the child labor law spies are lurking about, that decided to run his business online.

May each of you have a wonderful Christmas Day and a very prosperous new year in 2007!

Now turn off your computer and go spend some time with your family.

Are you prepared for a job change?

Any one of a thousand catastrophes could hit your employer in these uncertain economic times. Even positive business events like mergers, buyouts, and spinoffs can have serious negative impacts on your ability to keep fulltime employment and draw a paycheck from your employer.

Your job could be gone tomorrow; it happens to thousands of hard-working employees every day. Today you're gainfully employed - tomorrow you're job hunting!

But enough of the gloom and doom . . . let's talk about an amazing new job alternative that you can take advantage of today that has the power to refresh your life, secure your financial future, and turn the tables 180 degrees so that you become the owner of your own business and the master of your own destiny!

Chances are pretty good that you've known several people, maybe family members, or friends, or past co-workers that have made the leap to private business ownership.

Can you think of any of these people that have a thriving business today? Hopefully, you can . . . but the odds are not good.

I'm guessing you probably have knowledge of more startup failures among your friends than successes.

Here's an alarming statistic:

96% of all small business start-ups are doomed to failure.

I hope that sentence doesn't scare you away from moving forward in starting your own business.

But as I stated earlier, I want you to know the truth about what you're facing and how to side-step the traps others are setting for you.

Now don't get me wrong . . .

The Internet landscape is saturated with claims of easy, automatic, guaranteed, wealth-building packages and lucrative startup systems that anyone can do with minimal effort and wild success.

These offers often seem so "right" for the novice just starting out in business because of their supposed ease of setup, lack of real work, and mega-profits that are "guaranteed."

But I will tell you: don't waste your money or your time on these products, and above all, don't get discouraged that you're getting left behind if you don't hit the "buy now" button before 12 o'clock midnight when the offer goes away!

The self-proclaimed wealth "gurus" that produce these products can't guarantee you anything.

It's so easy to get hooked on their outrageous claims of mega bucks for little or no effort.

My friend Jeff had tried three different business creation "systems" or turn-key packages over the past few months that had initially sounded like they were exactly the solution he needed to profit from his own online business idea.

But for various reasons, none of the systems had given him even one dollar of revenue to date.

Jeff just couldn't understand why he had failed, and why his purchases hadn't produced the income he was counting on.

With slight variations, these are the common themes of the systems Jeff had purchased:

I have watched as many heart-broken and disgruntled entrepreneurs have bounced from one business building package to the next, to the next, determined to find a system that produced quick results but that also required little or no effort.

Each new system that fails depletes the owner's bank account, shatters his enthusiasm for business, the drive to succeed online, and his precious time spent trying to find anything that produces substantial income!

Now take a step back for a moment and analyze the situation. What's wrong with this guaranteed and automatic wealth building business model?

Do you know?

There is a real attraction to purchasing a "business in a box" system.

To someone who has never undertaken the journey of business creation before, it seems logical that the steps could be laid out for you and the ground plowed ahead of you to guide you every step of the way, for just a one-time fee of $999.00

Think of all the time you'll save and the headaches you'll avoid if you don't have to research and actually learn what starting a business is all about!

What you may be overlooking, however, are gigantic business creation problems and voids that must be solved for every company.

We've been discussing the futility of buying into many of the so-called "business in a box" solutions that are available to the online entrepreneur.

It seems they are everywhere today and many are being promoted (and even developed) by folks that have never been involved with a successful business.

In the previous post, I gave you four good reasons why you should avoid these one-size-fits-all business packages and why they just don't work.

Here are some additional reasons (continued from yesterday's post) why you should avoid them:

OK. I've given you a bunch of reasons why you should NEVER rely on a business startup package that seems too easy, guarantees your success, is the same for everyone, and prescribes the subject of your business.

They are pretty much doomed to failure even before the owner makes her very first sale!

Nationwide small business start-up statistics show that after one year of existence, only one in five new start-ups (20%) are still actively doing business.

And of the 20% of start-ups that make it after one year, only one in five is still operating after five years.

I've often thought about the myriad of reasons for startup business failure. Because creating and operating a business involves so many details, it's easy to understand why problems galore plague entrepreneurs.

Many mess-ups are not fatal.

The owner can recover from non-crippling problems that result from unexpected circumstances or misjudged steps. Persistence and adaptability are key ingredients in the owner's arsenal of personality traits that are needed to overcome big mistakes.

But there is one very tough problem to correct: a poor choice of the basic business idea.

If the whole subject of your business is wrong - if you have employed an incorrect model - or you have overestimated the "salability" of your product - you could be in for a very rude awakening.

Some call it "the paralysis of analysis."

Others refer to it as "a mental block" or "brain freeze."

But whatever you call it, don't let it get in the way of you coming up with a sound and workable business idea.

You see, more than a few aspiring entrepreneurs mistakenly believe that they must come up with an idea that will appeal to the masses - that will become the "next big thing." If they don't get that flash of inspiration, they hesitate to get going on anything.

Some folks believe that ordinary ideas have all been tried and unless they find a new or innovative idea they won't become successful in online business.

I say, "don't worry about finding the perfect idea - just find a good idea, test it, and then develop your business around being exceptional in your niche in some way."

Coming up with a workable home business idea is only a beginning. If whatever that idea is never develops beyond a thought, your dream of a real business will never happen.

In fact, let me be so blunt as to say that your chances for success in any business creation attempt will be directly proportional to your ability to translate ideas, and feelings, and thoughts into executed action steps.

Every new product and service that you see in the world today is the result of someone's acting upon an idea and following through by executing a series of steps that eventually resulted in the product's launch.

There may have been many, many people that had a similar, or even the exact same idea.

In a previous post I talked a little about the importance of being honest with yourself as you undertake any business creation.

For the solo entrepreneur, especially (because you are the business), it is critical that you begin on solid ground - not taking anything for granted, not overestimating your abilities, time you'll have available for the business, or your customer market potential.

You can't afford to keep a closed eye to any one of the many business realities that can be evaluated up front before so you don't lose a lot of time or money traveling down a dead end.

By asking questions at the outset, you are forced into analyzing, researching, and evaluating the information at hand in order to come up with honest answers that will lead to your business being planted on solid ground.

Otherwise, you may cripple your business output at a later time because you ignored, or chose to "skim over" some critical details that might have influenced your decision to even move forward at the outset.

Here are a few ideas of some information business niche markets that I have seen on the Internet that seem to be popular and growing (in terms of the number of new businesses cropping up.)

Will you be stealing or be viewed as a "copycat" if you join in this business space?

Not at all, as long as you don't "borrow" other people's logos, web graphics, content, etc.

The reason there is room for others in this space is because most of these businesses rely on local marketing, word of mouth, and clients that will be in your geographic area. Many of these ideas are work-at-home businesses conducted solo on the Internet.

Working for yourself often seems like the perfect solution for finding a way to earn a living and also enjoy some freedom of expression and the flexibility to set your own work schedule.

In addition, the idea of getting paid what you're worth and not having to share the profit of your own labors really appeals to many.

But before you dive into a solo business, you would do well to discuss the implications of being your own boss and "going it alone" with others that have already chosen this path and are actually making a living this way.

Their insights and advice will most likely do one of two things: strengthen your resolve to strike out down this path, or bring doubts into your mind about whether this type of business is really something that you will be happy and productive doing.

I was thinking the other day about how my tastes, preferences, and attitudes have changed over the years since I was first married and had four little ones running under foot.

All my children have now reached adulthood and I'm called "grandpa." (By the way, for any of you staring a similar transition in the face - it's a wonderful thing! It beats the alternative, doesn't it?)

I don't read the same things that used to interest me. I don't watch the same TV I did back then (mostly "kiddie TV" to keep the wee ones happy). The Internet was not around yet.

You're asking the wrong person, I'm afraid. I'd like to hear from some of you out there in Internet land that have experience in this arena.

It's not wise to take advice from someone that has never been involved in MLMs or to make an assessment of their value, potential, and advantages or disadvantages.

Let me just set the stage with this short introduction to get you going:

MLM is short for Multi-Level Marketing. It is the type of business opportunity that appeals to many people because the business model and products have already been proven by others who have been successful at it.

Just a few years ago, if you owned a solo business and contracted your time and expertise out on an hourly basis, you probably called yourself a freelancer.

Maybe you were good at writing, or typing, or graphics design, or doing research.

Whatever the skill you possessed, you found you were able to hire your time out to others on an hourly or "per job" basis. It seemed pretty nice at the time.

Hopefully, you enjoyed whatever it was that you did because you were being paid to perform that function only as you were able to produce. Typically, the more hours you spent in someone's service, the more you got paid.

Most of the professional solo businesses that I am aware of have followed a very traditional model in how the business is set up and operated.

Most attorneys, doctors, counselors, and accountants design their practices around the way their predecessors did business before them.

They may decide to locate in a single office or they might opt for a group setting where several others of their practice get together to take advantage of a single building with a common reception area, staff of office assistants, and shared billing system, parking lot, and rest rooms.

Each professional is in business for himself, but his business only thrives as he is able to apply his trade.

He bills at an hourly rate, sees whom he chooses, and sets his own schedule, although his assistants really handle the appointments and flow of work throughout the day.

I don't always recommend that you seek out an attorney and a financial advisor for your business safety and peace of mind.

And most of you know that I don't recommend the solo business owner buy an already established business.

But if that's your intent, and you have thoroughly checked out the business as I have suggested elsewhere, you still need to make absolutely sure this transaction is exactly what you intend. Surprises are not a good thing in this business.

Since you will most likely be investing a good deal of change in your purchase, and you will be spending the better part of your waking hours on managing your new "used" company, you would be well advised to consult with legal and financial counsel prior to closing the deal.

Before you take this step, I would encourage you to do a little research and study into the practice so you'll at least be aware of the laws, regulations, and tax consequences of this practice.

Should you pay your children (or the neighbor's kids) with cash to help you in your business and not call them employees so you can avoid the laws governing child labor standards? I won't answer that - it's your decision.

Generally, no youth under the age of 16 is permitted to work more than four hours in one school day. They can't be employed before 5:00 am or after 9:30 pm (unless the following day is a non-school day.) You can't hire a youth for more than 8 hours in a 24-hour period.

Youth that are 14 and 15 can be employed in certain situations and businesses that are non-hazardous like restaurants, janitorial services, fast food chains, landscaping firms, etc.

As the title implies, there is a business principle that all great companies adhere to that produces wealth and abundance beyond the infusion of cash into a business.

It is the principle that value can be created in a business in ways other than by direct cash deposits. It's a pretty simple concept, really, but many folks looking at business from the outside (like an entrepreneur deciding that he wants to create a business) don't think about growing a valuable company from within without spending money to do it.

Why is owning a business so profitable? Why is small business such a prized and universal dream for so many people?

Most would tell you that the reason they want to have a business is for the income stream that it can provide.

I'm always amazed that entrepreneurs are so anxious to spend their money.

I think the traditions and practices of the past have spilled over into the Internet generation of entrepreneurs and clouded the view of some soon-to-be business owners.

They feel that the old business cliché "you have to spend money to make money" still holds true.

I want to challenge that notion and tell you that you can play that game if you want to, but I would strongly advise a different approach.

I want to suggest that you conserve as much cash as you possibly can as you begin your new small business. Look for ways to save money instead of focusing on all the possible things you could spend your money on.

It seems that when most folks think about starting a new business, they consider what product or service they might sell to the consumer.

Everyone is familiar with consumer goods and most of us relate to them because we use them in our everyday lives.

We see and hear about these products in TV ads, radio spots, in the newspaper, and on signs and billboards.

We naturally begin to think about the products we use and how we might be able to come up with a better version or maybe we think we can sell consumer goods in a more effective way than they are being offered to us.

It might pay for you to change your thinking slightly and begin to contemplate what you might have to offer other businesses.

There are some advantages to avoiding consumers and simply dealing with businesses in your niche.

There's no doubt about it. The number one reason why people come to the Internet is to get information. They come to read the latest news, comparison shop, find answers to questions, communicate with friends and associates via email or voice, seek out entertainment, or play games.

Early on, the Internet was mostly a collection of free sites and information that anyone could access. Sometimes registration was required, but in most cases paid access was not even a thought of the web site owner. Why?

I suppose there are several reasons. The mechanism for charging customers was not generally available, people didn't understand that financial transactions could be done securely, and a range of software enablers were not yet available for things like secure shopping carts, real time authentication, and digital delivery.

Entrepreneurs are always thinking and scheming about ways to make a buck. That's what they do, isn't it?

Here's my favorite definition of an entrepreneur: he's a guy that has a one-in-a-million idea, a business plan that shows profitability in year 3, and no money!

Now we are seeing the rise of "blogpreneurs," the authors that are attempting to monetize their daily blogs.

Some are succeeding, to at least a certain degree, and others are finding the road a bit bumpy.

A lot has been written over the past ten years about business owners as risk-takers, and the characteristics or qualities that they possess which allow them to be successful in what they do.

But very seldom does this skill show up on the lists that writers prepare extolling the virtues of the top entrepreneurs.

Yes, persistence, attention to detail, willingness to take a risk, and determination are all candidates for the usual list of "must have" qualities for the successful business man/woman.

But there is another ingredient that I have found to be most important - even crucial - to the success of the creator of small business.

Creating and operating a new business can be an extreme challenge.

There are so many details to worry about, so many things that can go wrong, so many unknowns and variables in every niche market . . .

It is a daunting task to undertake such an unnerving challenge.

New businesses require huge amounts of time, owner effort, and uncommon commitment.

Some don't even begin to pay a return on the initial investment for many years . . . and others never do provide a return.

Why am I so passionate about solo Internet business?

There are many reasons that I can think of - but there is one that stands out in my mind as being particularly important.

It is the notion that the individual in our society has great personal power.

Some believe that all the business power resides in large corporations. After all, they have the money, talent, and clout to be taken seriously by the public.

They have the wherewithal to perform important research, market to endless crowds, and develop unlimited technological products.

For a long time I've felt that the future of entrepreneurship in the United States is very bright. And contrary to many that feel this nation is headed toward an economy based on mega-corporations and giant conglomerates, I've always believed that the key to a strong national economy is a growing and prosperous small business sector.

Of course, an important element of small business is the solo entrepreneur, the one-person company that thrives in a very narrow and focused niche with a business built on the delivery of fresh and detailed information.

I was asked this simple question in a roundtable discussion of business owners recently, and to my utter surprise, a very lively dialogue carried on into the night as the group of us debated the challenges and opportunities that affect small business today in comparison with "the way it used to be" just 10-15 years ago.

My opinion, and that of several others that specialize in online business, was that indeed, small business has changed dramatically for those that have discovered and subsequently embraced the new technologies that empower the small business owner.