Business Alone

I know many would-be business owners are caught up in the dream of solo business.

They envision themselves as enjoying lots of money as the fruit of their efforts.

They see themselves as being the "boss" of their own lives.

They fantasize about working when they want, doing what they want, and being accountable to no one.

They sometimes are so desperate to begin their new life they don't properly prepare for what is ahead of them.

They don't think about the extent of the commitment it is to leave a paying job and begin a new business venture that is untested and untried.

For many entrepreneurs, getting started in business on solid footing is an elusive task. Preparing a business plan just doesn't seem to be that important.

Yes, there are some business professionals that talk about the useless nature of the typical business plan. After all, they claim, there is no way to anticipate what revenues and expenses will be. They claim that everyone anticipates building their own plan to show that they will be successful by year 3!

When you get right down to it, however, these same professionals are not saying that folks should go into business without some kind of preparation. They are saying to do your planning, but maybe not prepare the typical "prototypical" structured business plan document.

Regardless of what you call, or even how you do it, everyone needs to plan for and prepare for starting a business in advance.

A sound marketing plan is very important to the success of any solo online business operation.

Your plan should include areas of focus like niche market research, the customer profiles that you have targeted, an analysis of your competition, your positioning, the products and services
that you are selling, your pricing plan, and your advertising and promotion details.

Do your homework before developing your market and niche plan. Effective marketing, planning and promotion begins with solid data and information about your specific marketplace and the sub-niche you have chosen.

Your business will benefit immensely by the amount of quality information and thoughtful pondering your give your plan.

Since the beginning of time, solo business persons have opened and maintained retail stores that sold products to walk-in customers.

Sometimes the stores featured only specialty items, like a bike shop or bakery. Others carried a range of goods (like a mercantile) but remained small enough that one person could man the shop by himself and perform all the daily functions necessary.

There would be goods to order from manufacturers or wholesalers, shelves to stock, customers to wait on, books to be balanced, and cleaning at the end of the day.

First, think for a moment about a traditional physical business.

Choose any store down the street you like or think about your favorite shop at the neighborhood mall.

Undoubtedly, it will have walls, a roof, carpet, employees, opening and closing times, products on the shelf (or some type of service that can be purchased), a cash register, counters, aisles, lights, bathrooms, advertising in the window, dedicated or shared parking outside, and many other things that all businesses have . . . or do they?

Try to imagine an alternative type of store with a single owner but no employees, no walls, no roof, no carpet, no bathrooms, no cash register, no counters, no aisles, no lights or other physical attributes.

Preparation for business success can come in many ways.

Some follow a regimented career path through college and possibly graduate school to learn the art and science of becoming a business owner.

Others choose to get their education from home study courses, books, tapes, and other media presentations.

Most businesses are started by folks that don't have formal training in business. The school of "hard knocks" is their educational backdrop.

Every business needs to establish and maintain professional working relationships with suppliers, distributors, vendors, service providers, and outsourcing companies.

You may think that just because you're running a solo operation and you are developing all your information products in-house you don't need to worry about on-going relationships.

Every business will need to establish partnerships (or relationships) with an Internet service provider, a bank or other financial partner, tax consultants (even if you prepare your own returns), insurance providers, possibly an attorney, and most likely some online service providers (like a merchant account company to provide for credit card transactions).

I get a number of calls every week that go something like this:

"I want to start a business. I have a wonderful idea. I have no money but so and so told me there were government grants available for new businesses. Can you help me get $50,000 so I can start right away?"

Not wanting to burst the bubble immediately, I might say something like, "What do you want $50,000 for?"

"That's how much I need to rent a building, make some improvements, and set myself up in business. I figure I'll make it all back in the first year."

Having to ship merchandise out to customers reminds me of the hassle of shaving every morning. It's a part of the daily routine, it's something to be tolerated but it's never enjoyed, and the longer you let it go, the more difficult the chore grows for the next day.

In my mind, having to ship merchandise, keep inventory on hand, box and package products, etc, is one of the reasons I feel strongly about solo operators focusing on information based business only. There is no shipping.

If you ship merchandise, you have to keep merchandise. All of a sudden you are in the warehousing and inventory business that presents all kinds of extra manpower costs, worries and hassles.

One of the greatest secrets to successful solo small business seems to escape many entrepreneurs.

If you are one that can't see the handwriting on the wall, I hope you'll take a lesson from this post.

Here is the secret: women drive most of the purchasing decisions these days, both online and off-line.

Now if you're a small business owner and are paying attention to the profiles of your buying customers, you will have recognized this trend a few years ago.

But it's still surprising to me that so many web site owners never seem to cater to ladies in their business or at their web site.

I've noticed over the years that I've been online (since the mid-90s) a change that's taking place in the way Internet users are visiting web sites.

In the very early days of the Internet, when it was a brand new and very exciting place to visit, most people that surfed liked to move about randomly and quite excessively.

It seems they wanted to go exploring to not only see what kinds of things were available online, but to survey niches and see all the players in them just in case they had a need to return sometime in the future.

It was kind of the same experience as you might have when exploring a new shopping mall or an amusement park for the first time.

You dash from store to store or ride to ride making sure you experience everything you can so you'll know what you like and what is not worth coming back to a second time.

One of the things that small business owners often forget is the fact that customers come to a small business often for the experience, not just for the products or services that are offered.

Yet many small businesses don't capitalize on that fact. Instead, they try to act like large sterile non-personal corporations. Let me give you an example of what I'm talking about.

I was recently in Park City, Utah with my wife and family. We had made the one hour drive from home specifically to walk Main Street. For those of you unfamiliar with the place . . .

Every business needs to identify something that sets it apart from all other businesses in the same niche.

This principle is called the USP or "unique selling proposition" by some, and others call it a variety of similar things. The principle is simple: you should attempt to capitalize on some characteristic or trait in your business that you can be known for -- some differentiating aspect that only you can claim.

It seems in almost every industry niche there is at least one business that desires to claim it has the lowest prices. It often brands itself with the slogan, "we will not be undersold."

To me, that is exactly the wrong message that a solo business ought to extend. My feeling is that solo businesses will almost always have difficulty trying to compete on the basis of product pricing.

Times are changing and every solo business owner needs to design his little company in a way that it can be globally competitive.

Before the Internet, it was often sufficient that a small business only worried about the competition in the local community.

You owned a gift shop and your customer pool was everyone within walking distance, or at least easy driving distance, probably within the radius of your community and maybe a few other small towns within 25 miles.

Like most new and innovative things, Internet business for many people seems to be nothing more than a fad, a fancy, a fleeting hot topic that will soon cool off and die in obscurity.

Many computer savvy folks have yet to make a purchase online and some still hold to the notion that the dot com era will soon be over for good.

They reason that e-commerce online is not secure, too much of a passing fantasy, and something that they can easily do without.

Often a web site privacy policy is overlooked, thrown together in haste, or altogether omitted as the site owner is anxious to move on to more glamorous and creative aspects of developing a business home on the Internet.

Privacy policies are sometimes akin to the "fine print" of most lengthy legal documents - something to be tolerated and considered, but probably there only in the extreme case that the user really cares about such things.

I believe, strongly, that the site's privacy policy is very important and something that can greatly enhance the visitor's sense that the site owner really can be trusted - that he/she really does care about the confidentiality of the visitor's personal information.

The type of fraud I'm referring to is credit card or payment fraud as opposed to things like embezzling, tax evasion, or product scams.

The Internet presents a special environment for payment fraud because transactions take place all over the globe often without one or even two parties being physically present to inspect or insure that everything happens as it should.

Anonymity enables dishonest people to become bold and brazen.

Credit card numbers and individual identities are stolen everyday by the unscrupulous.

Web sites and shopping carts are hacked in every industry.

Abuse of the payment system is commonplace nowadays.

I'm going to give you the URL (web site address, in case you're unfamiliar with the term) of a great resource for brainstorming small solo business ideas. There are many other nice features and helps at this site, as well, so be sure to browse around and spend some time there when you have a few minutes.

There is an index with 27 main categories of small business ideas. You can click on any of those main links to be taken to a more specific targeted business idea. For instance, one of the main categories that might be of interest to a lot of home solo operators is one called "Arts and Crafts."

Clicking on "Arts and Crafts" will take you to a new page (two pages actually) that has an index of 74 (at the time of this writing) arts and crafts related businesses. Here are just a few interesting examples: art prints, belt buckles, charcoal portraits, coloring books, hand painted pots, lamp shades, mirror art, seashell jewelry, wall murals, wind chimes and wood carving.

In my travels today I ran across a great site online that should provide a nice resource for you as a small business owner. At the very least, you can use it as a consumer to find just about any kind of product or service imaginable.

Often, solo business owners are in need of a particular service or piece of equipment that may not be available locally or within the surrounding area. Not to worry . . .

This resource I'm talking about is a business directory of sorts. What makes it such a good resource, however, is its search capability. You can search in any state or city in the U.S. and get great information about the business supplying the information.

Now searching for any type of service or product is a breeze. Not only will the search include the name of the vendor, it will also allow you to find all the contact information you need, web sites, email addresses and what kind of local competition there may be for a product.

Many times the experience of a newcomer to Internet selling is not what a business owner expects or wants.

Most often, new owners are surprised at the lack of sales they experience in the beginning of their web business career.

Selling online can be tough, especially for those that have no mentor or coach who can point out the usual pitfalls and obstacles to avoid.

Even then, markets change, demand for a product ebbs and flows, and niches get saturated with too many sellers.

More often than not, however, lack of sales early on is a symptom of one or two things that need to be fixed by the owner before he can expect success. Here is what those two challenges involve: