THE MOVERS

August 23rd, 2011

Five Steps to Finding Your Business Fit

s2

When asked their reasons for wanting to strike out on their own and start a business, people seldom say, “More money.” Most of the time I’ve heard, “More time with the family,” “more flexibility during the day,” or some other unfulfilled quality of life desire.

Granted, money certainly plays a key role in their making a “go” or “no go” decision, especially in a slow economy. But becoming an entrepreneur, whether you’re starting from scratch or buying into a franchise or existing business, requires you to look beyond simple financial returns.

You may already be earning a good living. But other than making money, maybe you just can’t find another compelling reason to go to work in the morning.

Money alone is not enough to keep most people fulfilled. I recommend evaluating a business opportunity against the following five factors to make sure once the newness wears off, you will still feel content with your decision:

1. Is there a financial fit? Run three financial scenarios – best case, average case (or best guess) and worst case. Shoot for the best case, but make sure your decision is based on the average case scenario. Also, make sure you can survive the worst case. If the house takes your poker chips, make sure you have the necessary cab fare home.

2. Does the job match your personality? What does the business owner do each day? Will you find that work meaningful and satisfying? Will you be good at it? One of the most effective ways to answer these questions is to contact people you’ve worked with in the past, and ask for honest opinions. Past performance reviews can help, too.

3. Will you fit in with the culture and environment? Go out and meet many of the people you will be potentially working with. If it’s a franchise operation, meet the franchisor’s leadership and support staff. If you are acquiring a business, talk to the employees, customers and vendors. Are these people you can build rock-solid relationships with, or are they going to suck out your life force through your eyeballs?

When asked their reasons for wanting to strike out on their own and start a business, people seldom say, “More money.” Most of the time I’ve heard, “More time with the family,” “more flexibility during the day,” or some other unfulfilled quality of life desire.

Granted, money certainly plays a key role in their making a “go” or “no go” decision, especially in a slow economy. But becoming an entrepreneur, whether you’re starting from scratch or buying into a franchise or existing business, requires you to look beyond simple financial returns.

You may already be earning a good living. But other than making money, maybe you just can’t find another compelling reason to go to work in the morning.

Money alone is not enough to keep most people fulfilled. I recommend evaluating a business opportunity against the following five factors to make sure once the newness wears off, you will still feel content with your decision:

1. Is there a financial fit? Run three financial scenarios – best case, average case (or best guess) and worst case. Shoot for the best case, but make sure your decision is based on the average case scenario. Also, make sure you can survive the worst case. If the house takes your poker chips, make sure you have the necessary cab fare home.

2. Does the job match your personality? What does the business owner do each day? Will you find that work meaningful and satisfying? Will you be good at it? One of the most effective ways to answer these questions is to contact people you’ve worked with in the past, and ask for honest opinions. Past performance reviews can help, too.

3. Will you fit in with the culture and environment? Go out and meet many of the people you will be potentially working with. If it’s a franchise operation, meet the franchisor’s leadership and support staff. If you are acquiring a business, talk to the employees, customers and vendors. Are these people you can build rock-solid relationships with, or are they going to suck out your life force through your eyeballs?

Related: Five Creativity Exercises to Find Your Passion

4. Is there a compelling value proposition? Make sure you have high belief and confidence in what you’re selling. Does the product or service add more value than it costs? Does it have staying power in the marketplace, or will it be replaced by something new? For instance, Blockbuster customers once loved the “bricks and mortar” video rental experience. Then Netflix and Redbox came along and offered the same movies at a more affordable cost through more convenient venues. Customers voted with their pocket books that convenience was more valuable to them than shopping experience, which eventually led to the demise of hundreds of Blockbuster stores.

5. Is this calling you to a higher purpose? I’ve consulted for Ben & Jerry’s Ice Cream, which sells much more than ice cream. The business exists to provide “innovative ways to improve the quality of life locally, nationally and internationally.” Google seeks to “organize the world’s information and make it universally accessible and useful.” Do most successful business people tap into their sense of purpose? No, but all the fulfilled ones do. You need to look into the future and ask what makes your feet hit the floor every morning.

Most of all, I encourage you think beyond the here and now when deciding whether to leap into a business venture. Think about your legacy. When the time comes to sell the business or retire, is this going to be something worth being remembered for?

Originally posted here


About the Author

Socialtik Mag
Socialtik Mag is a progressive platform for young, aspiring professionals to express our views on the issues and ideas in the world around us. It’s the Gen-Y perspective of life in the new decade. In addition to the original content we produce, we post from sites around the internet to keep our peers aware of what’s positive, what’s fresh, and most importantly, what’s progressive.




 
 

 
5960338-brainstorming-concept--related-word-cloud-color-sticky-notes-and-white-chalk-lines-on-blackboard

7 Rules to a Perfect Brainstorming Session

We all know that as budding entrepreneurs we have to create new ideas 24/7. We always have to have our thinking caps on and forge new ways to market our products or make people want to use our services. When we are sleeping, ou...
by DeAndra Harrison
254

 
 
OLYMPUS DIGITAL CAMERA

Creating a Personal Finance Statement

If you own a small business or are self-employed, this guide will help you track income and expenses on a regular basis. Entrepreneurs tend to create personal financial statements for one of two reasons. Either they love number...
by DeAndra Harrison
65

 
 
alg_apple_ceo_steve-jobs

Steve Jobs’s 7 Rules to Success

Steve Jobs’ impact on your life cannot be overestimated. His innovations have likely touched nearly every aspect — computers, movies, music and mobile. For entrepreneurs, Jobs’ greatest legacy is the set of pr...
by DeAndra Harrison
90

 

 
new-york-city-skyline-blue-large

Best and Worst States to Start a Business

Calling all Entrepreneurs! Looking for somewhere to relocate? A new study confirms that wherever your  business could is located it may affect your success — even your survival. According to the latest State Entrepreneu...
by DeAndra Harrison
217

 
 
ideas

Do You Have a Bright Idea at Your Fingertips?

The facts are sobering: the majority of small businesses fail within five years of starting up. While there are many reasons that businesses fail, including some that have nothing to do with an owner’s skills, it’s also...
by Socialtik Mag
31

 



8 Comments


  1. You may already be earning a good living. But other than making money, maybe you just can’t find another compelling reason to go to work in the morning.


  2. I think that you could do with some pics to drive the message home a little bit, but other than that, this is great blog. A great read. I will certainly be back.


  3. thank for your sharing,i like it very much!


  4. Appreciation for another serious post. We are convinced these tips have helped me help save endless hours of examination various other comparable blogposts merely close to find out some tips i had been wanting pertaining to……….


  5. There is a possibility that some of your friends have already bought replicas. In case you desire to buy a replica watch it is great to search it in different stores that propose such produce


  6. witch to LED linear lamps so that they can slash these costs by up to 80 percent – which is a lot wh


  7. In the end the idea mature about me personally, andf the other morning without the idea We would feel uncomfortable


  8. Ajouter un commentaire



Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Twitter Users
Enter your personal information in the form or sign in with your Twitter account by clicking the button below.


thru 9/26 - Fall Sale. 30% Off select styles. Disc