Steps to Starting a Small Business: #1 – The Idea

The topic of starting a small business is ALWAYS a popular one.  If you are a small business owner and you meet someone who is toying with the idea of starting a small business, you’ll probably hear the question asked, “How did you get started?”

When I would ask that question years ago, it would inevitably lead to a very dry discussion of accounting methodologies and business structure issues.

YAWN!

Here it is from someone who has “been there, done that”  I’ve not only bought the T-shirt but I’ve worked with HUNDREDS of people in helping them to achieve the dream of marketing and promoting their own small business.

• The first step to starting a small business is NOT deciding upon a legal structure for your business.

• The first step to starting a small business is NOT performing a SWOT analysis.

• The first step to starting a small buisness is NOT ordering business cards and stationery.

Are you ready – [drumroll - finger on desk]

The first step to starting a small business is the birth of the idea!

“Money never starts an idea. It is always the idea that starts the money.”– Owen Laughlin

Starting a small business with the idea that you’re going to make a LOT of money is a piss poor reason to launch a business.   As a matter of fact, if there’s a BETTER way to achieve failure, I can’t think of it.   Some Of The Best Business Ideas begin not with a passion for money, but a passion for something other than money.

There are certain inalienable truths which you should know as you begin the exciting journey of starting a small business.

1. You’re going to need more money that you thought to launch this business.
2. You’re going to need more money than you can beg, steal or borrow to launch this business.*
3. You’re going to have to work harder than you ever have in your life to launch this business.
4. You’re going to have to turn a deaf ear to the people who think you’re crazy for pursuing this business.

* There is an exception to the “you’ll never have enough money” truth.  You may gain access to venture capital, in which case you’ll have too much money – which surprisingly can be WORSE than not having enough.  Read Monitor110: A Post Mortem, which digs deep into the reasons (hindsight is always 20:20) why Monitor 110 didn’t rise to the ranks of legendary success – one reason was the access to too much money!

By the way, I’m not saying that you WILL NOT make money with your small business, I’m just saying if that is your primary motivation, you probably won’t make it.

So if money isn’t a good reason to start new business, what is?

In a nutshell – it’s an idea.  An idea that keeps you up at night.  An idea that permeates your every waking moment. An idea that has hold of your brain and won’t let go.

“Ideas are a dime a dozen. People who implement them are priceless” – Mary Kay Ash

For one client of mine, the idea that grabbed her and wouldn’t let go was a new way to deliver training.

After more than a decade working for Fortune 1000 companies delivering training to employees, my client began feeling like her job was worthless.  She would go in, lead a class and teach new ways of doing things to the class participants.  She was enthusiastic, entertaining and she got GREAT performance reviews.  However, when the people walked out of the training class, they went right back to their old habits.

She had an idea of how to make BEHAVIOR CHANGE a part of the training process.  If you have had a conversation with her in the past 7 years, you’ve heard about her idea.  She eats it, she sleeps it, she breathes it – she is TOTALLY passionate about it.

She loved this idea so much that applied for a business process patent on her idea – which cost $45,000.   In the past 7 years, her attempts to bring this business to life has literally bankrupted her and destroyed her marriage.

Her divorce forced her to “get a job.”  You might think that would be the “death” of her dream, but remember, this idea is literally a PART of her spirit by this time.    Her new employer – who hired her to deliver training – kept hearing about how she could make their training better.   In meetings, in emails, in casual conversation, her co-workers and managers kept hearing her passionate “elevator” speech about how training needs to CHANGE so it CAN be used to create behavior change.

All this “talk” has cost her a job in training – and it’s officially launching her business!!!

In January, her new employer is going to begin rolling out her patent pending business process.  They are contracting with her company to begin offering this exciting new concept in training.  Her employer is looking at increased annual revenue in the 7 figure range and my client is looking at 6 figure monthly licensing fees.

Daniel Scocco over at Daily Blog Tips has a post on 10 Inspirational Web Enterpreneurship Stories for more stories like this one.

If  you want to start a small business to improve the balance of your checking account – for heavens sake, go get a JOB and don’t even think about starting a small business!

What’s your passion?  What’s keeping you up at night?

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Tagged as: starting a small business, steps to starting a small business