Experience isn’t always necessary to build a business, and this second approach to entrepreneurship enables you to move forward in entirely new directions—directions that are supported by research and analysis of the market. With the “do what others do” approach, you’ll research the marketplace (or rely on current research), analyze your opportunity, and move forward with the “right” business for you, your marketplace, and your potential customers.
In the first approach, risk was reduced by “doing what you know.” This section presumes that your desire is to do something completely new to you. When entering a brand-new field, risk is a major issue to consider. For this reason and others, research is even more critical to this approach. First, you will want to be certain that the reality of your new endeavor will match your perception of what the business is like. Second, the better you analyze opportunities, the more you will be able to recognize and avoid the risk factors.
Not only will it be important to understand the available market you wish to serve but also any necessary training, certifications, and other things you will need to address.
As you can see, this area is vast. Many of these businesses will fall under the following categories, with some examples of each:
In the first approach, risk was reduced by “doing what you know.” This section presumes that your desire is to do something completely new to you. When entering a brand-new field, risk is a major issue to consider. For this reason and others, research is even more critical to this approach. First, you will want to be certain that the reality of your new endeavor will match your perception of what the business is like. Second, the better you analyze opportunities, the more you will be able to recognize and avoid the risk factors.
Not only will it be important to understand the available market you wish to serve but also any necessary training, certifications, and other things you will need to address.
As you can see, this area is vast. Many of these businesses will fall under the following categories, with some examples of each:
- Consultancies (computer, software, business)
- Agencies (independent insurance, distributorships and manufacturers representatives, real estate brokerages)
- Independent tradespeople (plumbers, heating and AC companies, painters, repair people)
- Hospitality (restaurant, hotel/motel, entertainment)
- Self-employed professionals (accountants, attorneys, freelance journalists)
- Network marketing (health supplements, lotions, kitchen gadgets, telephone systems, pet products, jewelry, cosmetics)
- Franchises (all of the above)
As you explore, choose the opportunity carefully, and make sure that you connect with the culture of that industry.
DO WHAT OTHERS DO: THE PROS
First, you will want to determine, with a considerable degree of confidence, if there is a market for your business. There already may be a solid amount of data enabling you to question and validate the market for the business. Second, the availability of training and certifications for virtually any subject through local community colleges, vocational programs, online programs, and various government and nonprofit organizations has never been better. Third, you can choose something that both feels right to you and meets your initial investment capabilities. Fourth, you are your own boss—you can use your own creativity and work ethic to build exactly the type of business with the type of culture you want.
DO WHAT OTHERS DO: THE CONS
These can be very competitive businesses. Because the existing market is so apparent, many people are trying to serve it. For example, think of the dozens of restaurants competing for diners. There is a dry cleaner in practically every strip mall, and almost everyone has a friend who is in real estate.
Differentiating yourself from others can be difficult and expensive. You will need to find ways through the quality of your service, pricing, and branding to address these challenges. Finally, depending on the nature of your business, creating the infrastructure and tools can be costly. Software programs for billing, reservations, customer management, telephone systems, inventory tracking, vehicles, and design are only a few of the potential challenges for a new company.
Think Creatively to Differentiate Yourself
At its core, this approach definitely relies on research and analysis of the marketplace to uncover opportunity. But there’s no reason it can’t also fulfill your personal interests or passions. Unlike the first approach, “Doing What You Know,” this second approach really enables you to consider a world of options and to do something related to what you’ve always dreamed of doing. So what is it that you love? When you’re working your day job, what work do you daydream about? Do you have a knack for cars (auto business)? Are you devoted to art (interior design business)? Do you love computers (tech support company)? Do you have a passion for animals (pet care business)? Do you love to cook (catering)? Tapping into that thing that you already love—the thing you talk to your friends about, dedicate your weekends to, or spend time thinking about—is a good place to begin researching new opportunities.
If you think you want to pursue this path but are not certain what you want to do or are frustrated because nothing seems to grab you, find a comfortable chair, get a flip chart or notepad, and start brainstorming!
First, write down the work or skills in which you have competence, even if you’ve never been paid. For example, are you organized, communicative, a good writer, good with math, computer savvy, etc.?
Write down businesses you have seen that are interesting to you. If you need a jump start, grab the yellow pages, open coupon mailers, read the classified ads in the back of business publications, visit online school programs for possible curriculum and certification programs, and look at franchise directories (such as the one suggested in the next section). Each time you see something that seems interesting, add it to your list.
After you have come up with a good list, take time to think about your strengths, challenges, and preferences. Consider what you have already learned about your personality. Are you extroverted, or do you prefer to work alone? Are you comfortable with technology? Are you mobile, or do you prefer to stay in an office?
Now match these personal preferences and attributes with your initial list of business types that interest you. Circle the top three that feel the most “right” to you at this moment.
DO WHAT OTHERS DO: THE PROS
First, you will want to determine, with a considerable degree of confidence, if there is a market for your business. There already may be a solid amount of data enabling you to question and validate the market for the business. Second, the availability of training and certifications for virtually any subject through local community colleges, vocational programs, online programs, and various government and nonprofit organizations has never been better. Third, you can choose something that both feels right to you and meets your initial investment capabilities. Fourth, you are your own boss—you can use your own creativity and work ethic to build exactly the type of business with the type of culture you want.
DO WHAT OTHERS DO: THE CONS
These can be very competitive businesses. Because the existing market is so apparent, many people are trying to serve it. For example, think of the dozens of restaurants competing for diners. There is a dry cleaner in practically every strip mall, and almost everyone has a friend who is in real estate.
Differentiating yourself from others can be difficult and expensive. You will need to find ways through the quality of your service, pricing, and branding to address these challenges. Finally, depending on the nature of your business, creating the infrastructure and tools can be costly. Software programs for billing, reservations, customer management, telephone systems, inventory tracking, vehicles, and design are only a few of the potential challenges for a new company.
Think Creatively to Differentiate Yourself
At its core, this approach definitely relies on research and analysis of the marketplace to uncover opportunity. But there’s no reason it can’t also fulfill your personal interests or passions. Unlike the first approach, “Doing What You Know,” this second approach really enables you to consider a world of options and to do something related to what you’ve always dreamed of doing. So what is it that you love? When you’re working your day job, what work do you daydream about? Do you have a knack for cars (auto business)? Are you devoted to art (interior design business)? Do you love computers (tech support company)? Do you have a passion for animals (pet care business)? Do you love to cook (catering)? Tapping into that thing that you already love—the thing you talk to your friends about, dedicate your weekends to, or spend time thinking about—is a good place to begin researching new opportunities.
If you think you want to pursue this path but are not certain what you want to do or are frustrated because nothing seems to grab you, find a comfortable chair, get a flip chart or notepad, and start brainstorming!
First, write down the work or skills in which you have competence, even if you’ve never been paid. For example, are you organized, communicative, a good writer, good with math, computer savvy, etc.?
Write down businesses you have seen that are interesting to you. If you need a jump start, grab the yellow pages, open coupon mailers, read the classified ads in the back of business publications, visit online school programs for possible curriculum and certification programs, and look at franchise directories (such as the one suggested in the next section). Each time you see something that seems interesting, add it to your list.
After you have come up with a good list, take time to think about your strengths, challenges, and preferences. Consider what you have already learned about your personality. Are you extroverted, or do you prefer to work alone? Are you comfortable with technology? Are you mobile, or do you prefer to stay in an office?
Now match these personal preferences and attributes with your initial list of business types that interest you. Circle the top three that feel the most “right” to you at this moment.
