Do I know my Industry? How is my business Different? Am I ready for the web? – A guide to Starting an Internet Business, Part I
Have you thought about starting a web based business?
More than likely we all have at some point of time. Many dream about an idea that could become reality. As time passes most dreams are forgotten of we simply just give up. The few that stick it out and but their all into it are the only ones that have the potential to end up with a successful business. Without the proper strategy and education, very few will ever succeed in making it big.
Rewards of owning a startup business:
- You’re the owner, It’s your idea and you’re in complete control of the entire process.
- You are free to do what you want, how you want and when you want.
- Let’s not forget one of the most important reasons you started this in the first place, you get the lions share of the profit.
It’s a very exciting time when building a startup
Many people (Myself included) can experience a dramatic effect in the beginning phase of a startup. Coming up with something that is different or better than something that already exists, or even a totally new idea that no one has ever thought of. Many of don’t have the funds to just drop everything and devote 100% of our time to something untried and tested. It can be a huge risk and detrimental to your life and the life of your family. Take your time, Do your research, think everything out. Plan your plan, and work your plan.
Don’t quite your job yet, better to get all your research done and if possible start while you’re still at your current job. This way you always have something to fall back upon should things not go as expected. Once you gain the expertise, get the required talent, plan the vision, and start making money you can quit your job when you see the process and longevity is going smoothly.
Here is the first of the five articles on how to get started:
Let’s get started, Part 1
Try and follow,
A lady named Amber and her partner Art came up with this interesting idea to start a business. Both had regular jobs one in the movie industry and the other was in web design. Both had more than 10 years of experience in said industry. Both had always wanted to build a profitable business that would later allow them to quit their jobs and live off the new startup profit.
A start up that is unique is much easier to gain interest than just copying what others
have already done.
The interesting idea had to do with manufacturing and selling their own brand of 3D Glasses. Both had experience in the industry but not in this particular nitch. They spent the first year researching everything from all the different types of technology, how they were made, who was already selling them and what would be involved in manufacturing their own designs. The concept seemed doable until they found out that tooling and first runs would cost around $75,000. They tried everything from loans from the bank, friends, and family. The most they could scrummage up was $10,000.
They knew there was another way but how? They put together a business plan, hired a business lawyer and started to think about funding in a different manner. Partners?
Through their research they found a company that had everything needed to manufacture these glasses and all that was needed to do was have lenses made to fit the existing frames. This company was already manufacturing and selling all over the world. More research was needed to try out this idea. Samples were created and tested. Art had a manufacturing background so it helped quite a bit when researching a company to make the lenses. In the end the partner pulled out at the last minute. An industry that had never really been done on a retail level in the U.S.A. was just to much to take a chance on.
Not understanding the full circle of how the industry worked ended up killing the idea almost from the beginning.
When you fall off your horse don’t give up. Get back on.
Amber and Art did just that. They decided why reinvent the wheel. There are a few other companies around the world that already manufacture 3D glasses. Why not just buy wholesale and resell high quality glasses that are already to go. All the work was done and some of these companies were already making a good profit in other countries. They ended up making deals with 6 companies and were backed by Real D, the licensing company for all the product lines they were to sell.
If they had started going in this direction from the begging they could have started almost 1 1/2 years earlier.
Nothing is more beneficial than experience to start your own business
Consider your skills and experience, if you want to start something on your own. You need to be sure that you completely understand the full scope of your business before you jump in to your start up. Having a professional background in the industry will bring less stress, more insight and a shorter start up time.
A few things learned and ideas for your startup.
A Unique idea is always better. Product or service it will make it easier for people to pay attention.
To excel in a new business, you’ll need to think of a unique idea or an improvement on an existing one that no one has thought about before. Starting a business that already exists in the market would mean having many competitors to deal with. So, be sure that your delivery is different. Profitability in the first or second year is tough,even to survive in the market unless you have something unique that makes you stand apart from your competitors. A few things that you’ll need to keep in mind are:
- Don’t compete head to head against larger competitors that have already established a strong following in the niche that you are targeting: For instance, if you want to start a stock photo site, photographers won’t be submitting to your site if you have absolutely no traffic. Also, marketing to your target audience would be difficult if your photo library isn’t sufficient and caters to their needs. You will need a substantial catalog to compete with all the other stock photo sites.
- Planning to dominate the market? If this is your goal, you will need a bankroll of cash and excellent marketing skills. You may have a great idea, technical knowledge and the capabilities but it will be an uphill battle that could eat up your entire nest egg. Even if your product in superior to your closes competitor it could take years or worse your livelihood to try and come close or even make a profit.
Better and easier to find a market that isn’t already saturated in the niche you’re looking to target. Investigate thoroughly the market and build a sound business and marketing plan. Adjust your goals and direction as needed until you have a viable solution to getting to profit.
This is the first of a five-part series about your online startup business. Don’t forget to follow each of the next articles:
- Marketing, Marketing & Marketing. Did we say marketing? – Starting Your Internet Business, Part 2
- Not a Developer or lacking in another important role? The Art of Hiring a Partner – Starting Your Internet Business, with a partner Part 3
- Remote Team Management #101 – Starting Your Internet Business, Part 4
- The Wrong Way: Lessons in Getting It Wrong (and Maybe Why You Should Try It, Too) – Starting Your Internet Business, Part 5