March 10, 2011

Doug and Teresa always fantasized about someday running a small breakfast café. When asked which of them liked to cook, they replied that neither liked to cook and neither understood much about the food industry. So what do you think will happen to their dream?

Sadly for Doug and Teresa, their dream of starting a business will remain just that -- a dream.

Why? Because the gap between where they are now and what they need to learn to start a business is more than two degrees of separation.

How to identify a good business match for you

In today's post-recession economy, if you're thinking about starting a business, it's important to focus on getting up and running as quickly as possible.

For that reason, the one thing I caution against is starting a new business that is more than two degrees different from anything else you've done before. That's because if you extend beyond two degrees, it is likely that you'll end up feeling overwhelmed with all that you'll need to learn just to get up-to-speed.

To help you identify a good business match that is less than two degrees of separation, follow these three steps:

Step 1: Identify the things you love to do

The first step is to think carefully about what really excites and drives you. You might find it hard to get past thinking about “what will bring in the most income,” especially in today’s economy. However, it’s important to first discover your primary interests and passions, and then match those to a good business for you.

Begin by taking out a piece of paper and jotting down the answers to these five questions:

1.  In the past, what have you always dreamed of doing?

2.  What do you naturally enjoy doing now?

3.  What projects or topics stir your compassion or excite your imagination?

4.  What activities do you enjoy doing?

5.  When are the times that you enjoy yourself most?

Take your time and don't rush through this step. Instead, go inward and identify what you most enjoy and what will bring you true satisfaction.

Step 2: Identify businesses that match your current interests

Now that you've identified the things you love you'll want to translate your interests into a good business match. With a little research, you may be surprised at the number of businesses startups that would be a good match.

Many online tools can guide you through this process. One example is the Niche Clarity Program by Dr. Carol McClelland. Developed for those interested in starting up a business, the Niche Clarity Program is a four part coaching program that helps you identify the sweet spot that taps your own passions and fulfills a need potential clients are willing and able to pay for.

Another is the Strong-Campbell Interest Inventory. The Strong-Campbell is a test instrument in vocational counseling used to reveal career preferences according to interests of individuals within those careers. Although developed as a career tool, it is helpful for those interested in starting up a business because of the expansive database of careers it has you consider.

Step 3: Talk to other small business owners.

While you can glean a lot of information from doing research online, talking to someone in the field gives you a real sense of what being a small business owner is like and what you'll actually be doing.

Make sure you ask:

1.  How committed and passionate were they before starting their business?

2.  How long did it take to start and how many hours per day did they spend?

3.  How long did it take for their business to pay off?

4.  What was in their business plan?

5.  What were their startup costs?

Are you thinking of starting up a business? Perhaps you've been dreaming about owning your own small business and don’t know where to begin. Maybe you’re getting increasingly bored at work or realizing that opportunities for growth are limited. Or, like many in this economy, you may be unemployed or facing unemployment. Regardless of your reasons, when starting up a business, stay close to what you know.

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Susan L. Reid, Article, startups, Small Business Trends