Wayne Gretzky offers one critical piece of advice to young hockey players; don't follow the puck, but go where the puck is going. This same advice applies to developing a viable startup. Don't try to compete where the market is right now, but look ahead for where the market is headed and prepare your startup to meet them there.
All startups begin with a great business idea. Even those entrepreneurs who don't really care what the operations are have to come up with a product or service that can be the focus of their business skills. The best ideas fill a need or provide a benefit to the target customer, and the ideas with the most growth potential must have room to grow. Tastes and interests change rapidly these days, and effective business owners must always be looking ahead to steer the venture in the right direction.
Changes in the business landscape are developing rapidly. Now, every business needs a web presence and are likely to be most successful if they offer some ecommerce component. Mom-n-Pop general stores are harder than ever to keep afloat because you just can't compete with the big box stores on price. However, niche and specialty shops are a good option, as long as the service and knowledge of the staff are top shelf. Information services are booming -- you can buy information on everything from starting a business to baking a cake, but the quality of the products available ranges from worth every penny to not worth a dime. The same goes for consulting. There are now "consultants" for everything from organizing your house to life coaching to training corporate executives. Competing in these crowded industries is tough, and successful enterprises must constantly upgrade their offerings to remain competitive.
When looking for a good business idea, look at the obvious. Very frequently, the most successful businesses are founded on a need the entrepreneur identifies that is right in front of them. Avoid commodity businesses where the consumer buys only based on price. Do look for consumer monopoly opportunities that give you pricing power. That is, sales are not driven by the lowest prices. Service based businesses are good options, though the downside is that your sales are limited by the number of billable hours available.
If you have a particular industry or target market in mind, do some research to see where those markets are going. Look for niche opportunities and specialize...you can always expand into more general offerings once your venture is off the ground. The best place to start is with your industry associations and trade journals. Keep up with the current news and join the networking opportunities. If you have a specific target market you would like to focus on, figure out where they go and what they do. Talk, and listen, to everyone around you to discover their needs. Don't overthink the options. Once you land on a potentially viable idea, follow up with a basic marketing analysis and keep moving forward.
Greater success in business (and in hockey) can be attained by looking where the target is going to be rather than aiming for where it is now. Even once your venture is up and running, long-term success relies on your ability to prepare for the inevitable changes to come. Always be looking for opportunities and threats on the horizon, and keep your venture flexible enough to respond as needed.
About the Author - K. MacKillop, a serial entrepreneur with a J.D. from Duke University, is founder of LaunchX and authors a blog focused on starting a business. The LaunchX System will help you plan your business startup to be flexible and to be able to skate where the puck is going. Visit LaunchX.com today and find out how we will help you start a business.
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