If you're one of the millions of people who dream of starting a business of your own...
This blog, and the next two, will take you through what you need to think about to see if your idea could work.
Essentially we'll cover the basics of a business plan, but in a simple, accessible and actionable way.
The idea for the blog came from a story I read this week: a survey said almost half of people polled wanted to go it on their own, with a vision for a more fulfilling future of their own creation.
That's been fuelled by this latest lockdown, and I can very much understand the feeling.
Maybe it is time to build back better, starting with your own life.
I love running my own business for so many reasons, and can strongly recommend it.
So, here's part one of what you need to consider if you're mulling a big idea over...
The Problem
This is your starting point, and the most important of all the various elements.
There's no viable business without a problem you're solving. It's as simple as that.
Sometimes known as the Pain Point, this is the reason a customer would come to you.
Because you have the expertise and ability to make their problem go away.
With my company, Creative Warehouse, it's all about every form of business communication.
A customer needs a new website designed, written and built? A high end video? Help with their business messaging? Or coverage in the media for their story?
We'll make it all happen. Simple as that.
Think of any business you like, and you'll immediately see the problem it's solving.
- Uber... you need a taxi.
- Lidl... you need food at an affordable price.
- Virgin... you need broadband.
- Timberland... you need good quality and hardy clothes.
So the list goes on.
It might sound basic, but in my teaching and coaching work I often meet people who want to start a business in an area they're interested in...
But where there's no obvious pain point they're addressing.
Working out the problem you're solving is the first step towards seeing if your idea could be a success.
It doesn't have to be a huge area, like those above.
I've worked with businesses that specialise in tracking precious items, how to encourage interactive and educational play for children, making hospitals more energy efficient, helping scientists understand the function of medicines, and many others.
But all are anchored in a problem which someone needs solving.
Which leads naturally to...
Target Customers
These are the people suffering the problem you're solving.
This point gives you an idea of the scale of your potential market.
If everyone needs your product, like broadband, or food, that's good in one way.
But it also means you're likely to face stiff competition. So you need to find a way to distinguish yourself.
Lidl do it well, positioning themselves with good food at affordable prices.
If you're a niche provider, and have less competition, it might be easier to be distinctive.
But still make sure there's enough of a market to support you.
For example, I'm not convinced the provision of marmalade sandwiches will be popular enough to be a winner!
One big tip I often use with businesses I work with:
It can help to imagine the ideal customer for what you're offering, so you know how best to appeal to them.
With Creative Warehouse I see a small but successful company or organisation, which wants to grow but doesn't know how to spread the word of its work. Which is where we come in.
Solution
Now you've identified the problem, and the people suffering it, what's your solution?
For Creative Warehouse, I put together a team of people who could do design work, build websites, were experienced journalists, writers, or public relations professionals, camera operators and video editors.
And because we distinguish ourselves by providing a top quality service for all a company's communications needs, I made sure everyone was excellent at their respective roles.
Uber needed amazing tech, Lidl stores and a supply chain, not to mention people, Virgin lots of infrastructure, etc.
So, think it through:
What's the solution you're offering, and what do you need to put in place to make it happen?
These are the first three points to consider if you've got an idea for a business.
Do some work on them, and we'll look at the next three in a week's time.