Building a Flourishing Business

Creating a Thriving New Business

Starting up a new business can be fairly painless. The difficult part is generating an abundance of wealth. How do you do this? Consider the following 5 topics and see if your venture is on the road to success or failure.

1.<b>Is your business plan financially realistic?-</b> Can the business you are proposing make money? Ask an accountant to help you answer this question. Do this right now. Looking at financial potentials can help you make important decisions about putting time and money into your new venture.

2.<b>Sell things that people want to buy - </b> NEVER start with an idea, produce it and then try to figure out who is going to buy it. A friend of mine once said, "Most farmers see a piece of land and decide to grow a crop. At the end of the year they harvest it and look for a buyer. If I were a farmer, I would not put a seed in the ground until I knew that there would be someone to buy my crop."

Several years ago, I launched a business that sold unique goods from around the world. People who invested in my company would consistently ask, "Do people honestly buy this stuff?" The thing was, people didn't buy that stuff�even though we spent hundreds of thousands of dollars marketing it. It should be very clear that people want your product before you start creating it. The more definite the demand for your products is, the faster you will be able to generate capital for your company.

3.<b>Create a Real Opportunity -</b> I spent days meeting with a wholesale plant grower. Their goal was to keep investors interested in the project. Although we were all conscious of the great potential their growing technology could generate in profits, it soon became clear that their management team hadn't correctly identified the opportunity. Instead, we pointed out that under their existing infrastructure, they did not have enough growing space to generate a profit that was worthy of investments.

Focusing on offering specialized goods to volume retailers would have put their business in a great spot. As a result, they weren't prepared to see the problems and lost their investment groups. A normal private placement opportunity should produce a 100�400 % return on investment in three to five years. Can your business do this?

4.<b>Understand the limits of your skill - </b> Often we create a new business with the people who are closest to us, or we attempt it alone. I once heard the story of a gentleman who was a cashier at a gas station who had a dream of developing an airline. He quit his job to follow his dream.

Let me simply suggest that your presentation to prospective investors would be way more effective if you could say, "Hello. I'm Bill the founder. This man right here is my CEO, John, -former Sr. Vice President of Southwest Airlines," than to say, "Hello. I'm Bill. I can operate a cash register. Give me money to create an airline� please?"

Supplement your experience with a team of people that are professionals in their particular fields.

5.<b>Establish -</b> Trying to introduce a new product outside the limits of an already defined industry will cause a plethora of social problems. In order to establish which category your company fits into, ask yourself the question; "If I were to place an ad in the yellow pages, what section would I place myself under?" When the answer to this question is plainly defined, you will do away with many difficulties in gathering your market research, industry analysis, and marketing communication.

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