Florida SBDC STARTUP Training Series: Select The Idea (1 of 6)

Florida SBDC STARTUP Training Series: Select The Idea (1 of 6)

Kevin Monahan with the Florida Small
Business Development Network today we’re going to talk about how to start up your
own business very exciting time when you decide to
start a business it’s really really important to start it right you see the
statistics about how many businesses fail in their first three- to five-year
it’s those numbers are real mostly it’s because people don’t seek advice or get
the experience we discuss their own capabilities before they actually
started business at the FAA SPDC network we’ve had clients come in who’s already
leased space in a shopping center and don’t know what kind of deuces they want
to own that’s dangerous stuff is really important to get a grip on what your
skill sets are what you want to do and how the firm idea why are you starting
this business is it because you want to get out of the corporate world you wanna
be your own boss you believe that you are doing something completely different
that the world is going to embrace what about your experience are you going into
a business that you’ve never done before many people before they go into business
work in a similar business to get an idea how things are done good idea how
the operation works good idea how management works experience is really
important if you haven’t worked in that field before you might have a tough time
just jumping right into business you might want to work for another company
that’s already established that’s doing more or less the same thing that way you
can learn the operations the methodology the marketing the selling where the
vendors come from just a whole host of things that a lot easier later on
another thing to think about is how he saved enough money for this starting a
business no matter how short your pencil is can be very dangerous relative to
money you can go through a lot of money before something good happens and you
gotta have that contingency in mind and other thing to think about is long hours
if you just recently had some kids and you’re going to be doing 12 hour days something you’re going to have to talk
about with your spouse because that business is going to demand a lot of
your time entrepreneurship is not a 95 role and
then finally are you a self-starter it’s not the kind of thing rub elbows 48
Annabelle goes off at five you drop your pencil you come home if you’re working
from the house there’s a tremendous number of distractions the doorbell
rings and it’s the guy that mows the lawn there’s a show that you really like
a two in the afternoon if you gonna take a little break these are the things that
could be real distractions from a home-based business and even if you’re
going out and selling or even if you were in retail you have to be a
self-starter you have to put the time and effort into this to make it work and
it’s hard when the other most important things that you have to realize what
kind of goals you’re going after as an entrepreneur you may have an income goal
you look at the family dinner supporting or the lifestyle they want to lead with
the type of work that you want to do these are all things that have to be
fought about ahead of time income goals how much money do I need to
make in this business how much money do I need to make gross
before taxes and expenses and how much money am I going to be able to put in my
pocket at the end the net at the end of this and then their lifestyle goals what
kind of business do you want to be and you want to be outdoors do you like
being indoors do you like selling do you like making things these are all really
important parts of that type of work calls what kind of work am I going to MI
going to enjoy you have to enjoy that’s one of the most important things if
there’s any advice we give you be passionate about what you doing to make
you a better entrepreneur so how do entrepreneurs come up with these ideas
of what type of business to open was certainly found that work experience as
a big one they get experience in the job that
they’re in find out a lot about how it works but they start believing they
could do it better than the people that they’re working with right now that
they’ve got an angle on it that might improve it so they could be more
competitive or really take over the niche that’s very common personal
interests I had recently client that was thinking of going into business he came
to me and said I think I want to open a business what are
you doing right now well I have six karate classes a week I teach kids
karate you’re already in business you’ve got to do something quick so personal
interests or hobbies and again these are things you can be passionate about but
also give you a lot experience because you’ve been living at Hobby you’ve been
living that personal interest and of course consumer experiences that can be
dangerous you stayed in bed and breakfast and you
really liked it that that weekend and you think you can do it yourself you
where it’s a lot harder than you think consumer experiences are a lot of fun to
take a real close look before you get it and see what’s going on behind the
scenes before you take that on to those couple of ways to go into business you
can go from scratch you can buy an existing business where you can buy a
franchise opportunity let’s look at all three of these starting from scratch is
the most affordable way for doing it but you’re going literally from scratch its
a blank piece of paper used to design all the processes yourself a business
plan has to come completely from you the operations of the mapping everything
comes from you so you’ve really got to do your homework to be very successful
started from scratch many people instead buy an existing
business because they feel that a lot of the process has already been worked out
the kinks have been worked out the business has been around for a while
there’s already a customer base there’s processes and there’s operations and
that kind of thing but you also have to be careful because you want to make sure
that you’re buying the business for the right price is going to make sure that
that the owner is showing you everything in the business and when if you didn’t
notice but the business had a bad reputation with the customer base these are things you gotta think about
before you do it many people buy a franchise opportunity to question
mission and we think of that as McDonald’s or Burger King but in reality
there’s hundreds of different kinds of franchises and when you buy a franchise
you’re buying a system this is like the complete opposite from starting from
scratch the franchise wants you to be successful it puts together a series of
books and classes that teach you exactly how to run the franchise the way they do
it and your chances of success are really really good if you follow their
step by step process but if we look at it from a cost
point of view started from scratch again probably the
lowest price going and starting a business by existing there’s this can
vary greatly depending on the type of business that you’ve on and franchises
tend to be the more expensive that because you’re paying for everything
being sought out all three of them are worth consideration so as we talk about
the idea for the business that you’re going into you want to talk about the
purpose of the business and how it will make money the idea is really really important you
have to believe in your idea and you have to describe it in a way that we all
understand the audience is that you talk to the idea describes the opportunity
the business model answers the question so what what is the purpose of our
business what are we trying to do what is the mission was the strategy for what
we’re doing and that’s gonna incorporate everything and is your prelude to doing
business plan also understand that not only do you have to have a good idea but
you have to have a clear and understandable business model the
business model is how the idea makes money they work hand-in-hand a good idea
that makes money is something that a banker and investor or maybe a rich
relative is going to understand and help you make this dream come true

Comments (2)

  1. A wonderful project making this series! Amazing help! An absolute MUST WATCH to all small business starters. This should be shown in all schools and educational developments. Thank you!

  2. Speaking from 10 years of experience running a business, this is a terrific video and a MUST WATCH for budding entrepreneurs. Mr. Monahan is an excellent advisor, mentor and an inspiring leader. Make an appointment TODAY with the Florida Small Business Development Center and start your business plan in the right direction… making a profit and having fun!!

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