Partner Article

Your business idea

This is a series of articles written by an entrepreneur who has started, grown and managed a number of businesses. As a consequence of success through hard work, a bit of luck, experiencing good times and not so good times, and now enjoys what has been achieved.

“Business, that’s easily defined - it’s other people’s money.” (Peter Drucker)

Generally people fall into one of three categories. There are no hierarchies in these categories it is just the way it is and all people are of equal value.

The first category is those people who are content to work for someone else, God bless them, because they will be your recruits of the future. These people fundamentally help establish the culture of your business and more important ultimately the growth of your business. The second category is those people who want to start their own business and have a clear business idea. Finally the third category is those people who want to start an enterprise but do not have their own business idea.

It is the people in the second category that this article deals with.

People in the second category have business ideas that are usually based upon one or a combination of the following; their skill set, a car mechanic starts a repair service. Knowledge of the market, a car salesperson sets up their own retail outlet. Taking a hobby to a business, a model car enthusiast starts providing services to other enthusiasts. They have identified a gap in the market; an IT coder develops a unique APP for the car market.

It is very important that whatever the idea that it is tested as being commercially viable. I have met people who thought their ideas were great only to discover, expensively in some instances, that there just was not the demand for the product or service.

How do you test the idea? Talk to friends and family? They generally will be reluctant to tell you the truth! They don’t want to hurt your feelings. Pay for research? My view is that in the first instance this is a waste of money unless the return on investment justifies it, that is it is potentially a big business or that your potential investors will expect third party validation.

My approach initially is to find the most sceptical person or group of people and get their views. It is important to remember that if your idea relies on patented intellectual property that you get non- disclosure agreements signed before sharing your idea.

You have to recognise that not everyone you ask for feedback will see it!!This approach can also help you refine your idea and ultimately your selling or investment pitch. I have grown some large businesses (multi million revenues) on the basis of other people scepticism. But then again I am somewhat of a contrarian!!

There is a vast array of data now available on the internet regarding markets. Go there next. Do your own web based research. Then contact someone who has experience of business, most experienced entrepreneurs are very approachable and only too willing to have a conversation and give feedback. It is a great foundation to have commercially validated your business concept.

You have to remember that if it was easy then everyone would be doing it!!

This was posted in Bdaily's Members' News section by The Secret Entrepreneur .