You don’t make money in business after everyone else has jumped in
Recently there have been a lot of studies about how people purchase things based on emotion and not rationality. People purchase houses because they like things such as the charm of wood molding or the color of the walls reminds them of their childhood homes. Creating emotion is great for people in sells, but feel that it led to a lot of the current housing issues and use of “lying” mortgages…but let’s talk more about how emotion leads to business.
Personally, I know a lot of people who have quit their job, maxed out their credit cards, took a Home Equity Line of Credit out on their house, emptied their 401 K for a feeling that they could start a business, that they could do it too. They saw someone making money and decided to start a business to make money because their buddy is making money or the guy down the street bought a new boat or 5th wheel and he’s doing it.
Personally, I even have thought of going against my moral judgment and opening a medical marijuana dispensary even though I have never used drugs after meeting three different people who are doing extremely well running one.
To be successful in business, I believe that your idea or business idea should be emotional (you should love doing what you do), but your business plan and model needs to be based in rationality. Running a business is one of the hardest things that you will ever do. Having a business is a lot like being a parent – it takes a lot of money, dedication, time and you have to do the right thing for your business.
Almost every day of my life I talk to new business owners who tell me about some great idea they just had. I’ve heard thousands of them – ranging from services for the family pet to how to how to improve space travel for a family.
This article is not to kill innovation in uncertain or un-prosperous times but to think rationally on how to make money and hopefully a lot of it in the long run. I want you to think outside of the box. There is money to be made out there and now more than ever is the time to do it. In the last two weeks I’ve had discussions with three friends and colleges telling me that they have money in the bank, but they don’t know what to invest in.
So if you have an idea, this is the time to see if your idea is feasible. According the Wall Street Journal, big companies are back on the prowl for start-ups and the IPO market has come back to life. It’s not easily spread though what companies are purchasing; a majority of companies are searching for information technology companies, followed by health care, consumer services and business and financial services.
Now, more than ever there are great programs for business start-ups. People can utilize services such as the Small Business Development Center (SBDC), SCORE counseling and local business incubator programs to name a few.
So if you have an idea, take the leap now and not when everyone else is doing it. Spend time reading great resources like The Wall Street Journal, Entrepreneur, Money, etc and look into what you can do with your idea to make it successful.
In addition, look into resources in your area such as the SBDC and schedule an appointment to talk to professionals who have been through the gauntlet and know what it takes to be successful or have failed miserably and can tell you what not to do.
For more information on business incubator programs, visit an earlier post at
http://laurabaker.wordpress.com/2010/05/12/business-incubators/
Laura Baker is a business specialist consultant for LMG Consulting. Laura has worked with major fortune 500 companies, boutique firms, non-profit organizations and individuals from the food, insurance, financial, medical and service industries. For additional information, questions and or comments about your business or organization to Laura@LasaraMgmtGroup.com.
