Interesting… is the most common response I get from people as I describe my business idea. This can mean so many things but mostly I think it means:” I have no response to that..are you kidding? You are crazy but I’d rather avoid an awkward confrontation so I’ll just nod my head until you go away”. Although lately, I have been getting the occassional, “That’s a great idea!” which hopefully means I’m getting better at explaining things.
During a discussion tonight regarding a potential business idea that offers education to potential entrepreneurs the topic of barriers came up. Most people usually have a good idea or two for a business but then never do anything about it or never want to tell anyone. For those that make it past that hurdle then they run into the business plan challenge but most especially Market Analysis. Even business students are taught an overview by most professor or are indoctrinated with marketing how to’s from a corporate mindset and resource view. The bootstrapping entrepreneur is often left to their own devices although there are resources like small business development centers or SCORE chapters they are largely unaware. The really determined ones start calling people, customers, competitors whoever can help them understand what their potential customer wants and why as well as what is missing-where is the opportunity gap?
From there a related issue arises in determining price points and the ROI. Most of the time your company is a substitute for something else or a spend coming from somewhere else-understanding that is the key to making a case for the value proposition you can offer. This leads to the financials which becomes daunting for some because they were never good at math. Besides that it becomes difficult to forecast and plan for all the different expenses. Often times they capture the essentials to their business process but then forget some basics like phone or internet.
The next barrier that pops up is that whole legal paperwork nightmare. Should I create a LLC or a Corporation ? Should it be a S or C Corporation? Should do it in my local state or Nevada? Delaware? (It depends, by the way for those wondering) Where am I going to find a lawyer that I can trust and won’t just hand me a nice leather binder with boilerplate templates? Then one of the highest hurdles for some is the ability to get the financing they need. Loans? Angels? VC’s? While there are some services like FundingUniverse.com it becomes tough for those without the right connections.
As we looked back at the hurdles on the track meet of entrepreneurship we recalled that one of the most difficult and impactful hurdles was who you were running the race with. Who is on your relay team? When our presenter was asked about resolving that inefficiency in the market he just shook his head and said that it has been a problem forever. What would you say if I said we have the answer to the deepest of dilemmas?
Interesting…?
