For example, is closing the doors due to the stress of it all, the same failure as closing the doors because you don’t have the cash to keep them open?
Or the business owner made one big risky decision that paid-off handsomely.
Whichever: we present here what can be a Great Opportunity or Costly Blunder.
There are likely to be at least six reasons for starting a business or introducing a new product:
1. Underutilized capacity – a need to ramp-up the use of current capacity;
2. Extension of current offering – a ‘sister’ product or service;
3. Problem resolution – delivering a product/service to fix an identified problem;
4. The ‘Big Dream’ – a ‘bright idea’ that ‘can’t fail’, but has not been tested in the marketplace;
5. ‘White Space’ – a gap between the features of similar products;
6. Unique knowledge of an economic sector – you know something others don’t!
What are your top five reasons for starting a business – or not starting one?
One thing all these six reasons have in common is the assumption that:
1. The opportunity can generate sufficient cashflow to sustain the business over the long-term;
2. You have the capacity to raise the necessary capital to fund the business over the long-term?;
3. The market will respond to the product offering – even if it is better than the alternate solution?;
4. You have the emotional stamina to ride the rocky road to success – or failure?
What assumptions will you make when starting a new business?
Remember, the first people elevator was invented in 67AD by Heron of Alexandria. It was steam driven and actually installed in a building along with stream-driven self-opening doors. It took another 2,000 years before it became a standard item that introduced us to the sky-scraper era.
Do you have an ‘old invention’ that can be turned into a new business?
Or, did I blunder with the history of elevator technology?