1. Does this business get you
excited?
Someone once said that shopping for a business is like watching
a peep show. OK. But will you stay excited after that first peek? I
don't mean about the money or the success. I'm talking
about staying motivated to do the grunt work—like getting
customers and moving product. "It's so cool to think about
it" isn't enough to make a business happen. On a scale
from 1 to 10, rank your motivation:
10
points: "I would give my left lung to make my first
sale in this business."
5 points: "I'm willing
to work hard."
1 point: "We can finish
this business plan later. Isn't Friends on?"
2. Is this business
"you"?
Content Continues Below
Describe the perfect CEO for the business you've chosen.
("She's daring." "He can mix with all kinds of
people.") Now describe you.
10
points: "I must be looking in a mirror!"
5 points: "There's a
resemblance. But that person can do some things that I
can't."
1 point: "Who is this
stranger? And how did he get here?"
A word to the wise. If you need to re-tool your entire
personality to make a business fly, then it's not the business
for you. No matter what some guru might tell you, you already have
what it takes to succeed—when you pick a business that's
in your hot zone.
3. Have you done this
before?
You have "past lives." They're the skills,
contacts and experiences you've sucked up and stored away
during 20-odd years of doing, working and fooling around. OK, so
you've never run a software firm. But you have written code (in
college), handled finances (for your dad's store) and connected
with all the suppliers (that job at cyberland). This seance says
"You have the experience."
So do the déjà vu. List the key duties in your new
business (such as dealing with vendors and getting product on the
shelves). And for each one you've done (somewhere)
before—give yourself 3
points.
4. Can you walk the
walk?
There was once a waiter who wrote a screenplay for Jack
Nicholson. Trouble was, the only thing Jack wanted to buy from him
was coffee.
This question is about "being a player," or selecting
a business that's at the right level for you. Customers need to
trust your ability to deliver. Do people "see" you in the
business you want to start? That's terrific! Because before
they buy your product, they must buy you.
10
points: No problem. I'm the perfect image for this
business!
7 points: There's a gap
here. But I can close it.
1 point: Picture a short, bald
Abraham Lincoln. And I'm not even that close.
5. Got customers?
Vague plans, like "we'll advertise," just
won't do. But the good news is, you don't have to! In your
hot zone, you already know your customers. They're the moms at
your Gymboree class, the shops in your town. Or other moms and
shops just like them. They're the customers you've lived,
worked or played with. That's why you know what they need.
Right now, start naming every real, living, breathing customer
that you can actually reach with your product or service—give
yourself 2 points for each.
6. What's your "natural
advantage"?
"I'll use my DJ contacts to start a catering
firm." "My cousin runs a bait shop—I can sell my
lures there." "I can do Web sites for my alumni
group." There's something about you (your friends, your
job, where you live), that gives your hot zone business a foot in
the door. That's your "natural advantage." "My
natural advantage in this business is _____." Fill in that
blank, and give yourself 10
points.
7. Can you do it now?
The clock is ticking. And a million distractions (collectively,
we call them "life") want to trip your plans down the
black hole of never-never land. Believe the fortune cookie. It says
"New business is like used car. Longer it takes to
start—less likely it starts at all." If you can make at
least one sale in the next six months, give yourself 10 points. But subtract 1 point for each extra month
you'll need.
8. Will it support you?
They asked that of the man on the flying trapeze. But it's
just as true for entrepreneurs, because they walk a tightrope
called making your own pay. And until that business takes off,
you're working without a net. So it's not in the hot zone
unless it makes the money you need. If it will—before time,
patience or your marriage runs out—give yourself 10 points.
Score It!
75 and Up: I call this the
"Marilyn Monroe" zone, because some like it hot, and a
business can't get hotter than this!
55-74: You're like a cat
on a hot tin roof. I'd say this business is a go!
35-54: Definitely warm; you
have something.
25-34: Trouble; I'm
starting to feel a chill in the air.
Below 25: Iceberg, dead
ahead! And the water's freezing! To avoid one hell of an
impact, I'd think about changing directions fast.
Nick D'Alto is director of IEG, a nonprofit that helps
people create new businesses and careers. E-mail him at ND2020@aol.com.
Page
1 | 2