If you are new to this blog, you might want to grab a coffee and start at the beginning . . . on October 14, 2008. If you are returning for an update, welcome!

December 29th, 2008 2:00 pm

How many times have you heard, “find that one thing that you love to do and do it”? Are you the type of person that can focus on one thing and do it over and over, day in and day out? Or, are you the type of person that needs a little more stimulation than that? I, personally, am easily bored with repetition. I always have been. I knew that starting a business would be a challenge for me - one that I was eagerly anticipating. I knew that juggling my fulltime career and the responsibilities of running my own business would likely have me riding that fine line between enough and too much but I also knew that I just wouldn’t be able to afford to walk away a guaranteed pay cheque in the beginning.

Herein lays the dilemma . . . how many hours a week do you plan to spend in your business versus the hours that you might have to spend doing those things that will generate income until your business is sustainable? How much energy will you be able to put into growing your business if the majority of your energy each day is being spent during “prime time” or between 9:00 am and 5:00 pm working for someone else?

There are only so many hours in the day, what is your day going to look like once you start your business? For example, I love people . . . I love meeting new people, catching up with people I haven’t seen in a long time and keeping in touch with the people that I see regularly. I had a vision of my day and my shop in which people would come to have a cup of tea and visit with each other and with me. I had never worked in retail, I didn’t have any idea what a typical day would look like and in my “dream” day I hadn’t given any thought to the types of activities that would sustain my business.

The thoughts and notes that you have made to date in your journal that describe your business idea are the beginnings of a business model. Your description of your “dream” day factors into that model, in my case, whether that that "dream" day is realistic or not.

Wikipedia does a nice job of explaining what a business model consists of - in theory and practise the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.

1. In your journal, jot down the primary activities that relate to your business idea – where do you think that you will you spend your time any given day or week? For example, I knew that I would have to spend a significant amount of time sourcing items to resell in my shop. An antique shop is not like a regular retail store in which I would be able to pick up the phone and call a supplier when my inventory was running low. I knew I had an eye for a treasure but I also knew that finding those treasures was time consuming and I would have to invest that time scouring second hand stores and garage sales in order to keep my inventory up.

2. Flip back in your journal to where you identified your team. Are there any strategic alliances that could be formed that may be mutually beneficial from a financial perspective? This is the process of diversifying your business model. For example, my cousin makes body lotions and bath gels, if I were to offer her products for sale in my shop the arrangement could be beneficial to both of us.

3. Are there any other products or services that complement your business idea that either you personally can offer, or another business can offer, that will add value for your potential customers?

Useful Links:

Canada Business Services For Entrepreneurs - Developing Your Ideas

Ottawa Centre for Research and Innovation - Business Tutorials

NOTE:  OCRI is an invaluable resource for the business start up and the business owner looking to expand their venture.  Each tutorial contains a video, slides to accompany the speaker, and supporting resources.  In addition, the Tools and Resources page of their site contains a comprehensive list of links that are well worth spending the time to explore.

If you are new to this blog, you might want to grab a coffee and start at the beginning . . . on October 14, 2008. If you are returning for an update, welcome!

November 10th, 2008 8:30 am

Tell somebody, tell somebody, tell somebody;
I gotta play it don't you know;
Tell somebody, tell somebody, tell somebody.

I have got to tell you that I am a huge Sass Jordan fan and her song, Tell Somebody, seemed to be my anthem over the next month. After four weeks of playing "I've Got A Secret" with the idea of starting a collectibles shop in Small Town, I was bursting at the seams to tell somebody. Maybe it was the weather that day - freezing rain on my car over night had sealed it shut, ensuring that I would have the day to myself - or maybe I had just talked myself in circles with the should I/shouldn't I argument. In any case, by 10 am I had picked up the phone. By 10:01 am I hung it back up. By 10:10am I picked up the phone and dialled . . .

Me: Hey Local Business Owner, have you got a minute?
LBO: Sure, how are things?
Me: Great, stuck at home because I couldn't get into my car. Say, I have this idea and since you have opened your business in the last year, I just wanted to get your opinion on something.
LBO: OK, shoot.
Me: I was thinking of opening a collectibles shop, something quaint, cute, mostly collectibles and books, maybe some cookbooks, you know?

The conversation lasted over an hour. I listened to all of the LBO's ideas for my shop which were based on something that the LBO had thought of doing as well. It was so easy to get caught up in the LBO's vision that I didn't realize that I was starting to lose sight of my own. Through the course of the day I made five telephone calls - two to other Local Business Owners, two to friends and one to a complete stranger who I thought might have a line on a location for my shop. In each call I "bounced" my idea off the individual on the other end of the phone.

When I sat down at the end of the day I realized that the picture of my shop that I had so carefully nurtured and protected was getting a little fuzzy. Everyone was so supportive of the idea, even said it was perfect for me, but each and every individual had their own vision of what my shop should look like and the types of things that I should do with it, and even what I should call it. I also realized that I hadn't sought the opinions of the people who mattered most to me, namely, my family.

There is a risk in telling others about your idea. Some of the people that you choose to tell about your idea may try to talk you out of it, feeding the Pessimist in you. Others may praise your idea, and your personal suitability, feeding the Optimist in you, but they may also offer all kinds of unsolicited advice. The biggest risk is that someone will steal your idea.

TIP: If you have invented something, or you have a business model that can be easily replicated, be very careful about who you tell and in the case of a patent, seek the advice of a patent lawyer.

During the Business Exploration Phase, prior to Start-Up, it is important to Listen (yes, we are still listening) and record. For every reason why you shouldn't start a business that is presented to you, note that reason in your journal. Also note who presented the reason; whether they have owned a business before or not; how well they know you (strengths and weaknesses); what they know about the industry in which you want to start your business; what they know about the community in which you wish to start your business; and whether they can identify the economic, political and/or environmental forces which may influence the success of your business.

You are probably thinking, "ARE YOU KIDDING ME"? I can assure you that I am not. You have to have some method of valuing the various opinions that others will have of your business idea. The same exercise should be undertaken for everyone who supports your business idea. In my case, not one of the people that I told were in the collectibles industry, not one of them asked me if I had any experience with retail and they sure didn't ask me if I liked to dust!

TIP: Another way in which you might assess the people who offer their opinion to you, is to examine their value to you in terms of your team.

1. On a blank page in your journal, write the word, "Me" in the centre.

2. To the left of centre, list all the professionals that you will need to be involved in your business idea. For example, lawyer, bookkeeper, cleaning lady, etc.

3. To the right of centre, list your support group - friends, family, organizations - these are the people (or groups) that you can count on to give you the support that you need as you start your business and as you engage in the day-to-day operation of your business.

4. Across the top of the page make your "wish list" of people. These are the people that you feel will be able to advance your business in some way if you were to meet them. For example, I might list Taylor Swift on my wish list because she is young, famous and collects antiques. I might also have Verne Reese on my list because he is the most famous antique person I know (sorry Verne, I know you are not that old).

Should your idea turn into reality, and you start your business, the individuals that you have identified above may have a role to play in the success of your venture. Susan Ward writes in her article, Harness the Power of an Advisory Board: advisory boards are powerful management tools, "No business is too small to benefit from having an Advisory Board and an Advisory Board is such a powerful management tool that no small business should be without one. Think about the last time you met with other business people and had a open discussion, sharing your ideas and concerns. An Advisory Board is a formal version of this process . . . you can think of an Advisory Board as a management think tank. Your Advisory Board members will serve as a sounding board, a source of ideas and expertise - and give you honest advice".

Useful Links:

National Post article, How Do I Build A Good Advisory Board
Entrepreneur.com Advisory Boards

Upcoming posts: Rough Numbers or Numbers in the Rough; Finding That One Thing; Can I Make This Work?; Skin in the Game; I Am Woman Hear Me Roar or A Lesson in Dressing Properly for the Task At Hand