What makes a good business?

A number of factors go into why someone decides to start a new business. What was your reason? I think most would agree that they wanted to do something more. Others might argue that they wanted to push their potential in the marketplace without barriers. There could be a number of reasons, but what really makes a good business?

I have had several clients come to me with ideas that initially sounded pretty good. In time that business falls prey to those who run it. I think that there a couple elements that come to mind when looking back why ideas pass or fail:

1) Does the owner spend time on this new concept?

2) Does the owner sell the product well? Or do they talk too much?

3) Does the owner look for a quick buck?

4) Does the owner plan too much?

5) Is the owner disorganized?

You might have noticed that in all cases it comes back to the owner or visionary who had the initial idea. In all of these questions I am hinting to the question: “Have you built a business plan?” In most cases the answer is no. I have told my clients before that the hardest thing to do is run a business and the second hardest is to tell someone how you run that business. Basically that is what writing a business plan is all about. It’s about getting organized, its about staying focused and it’s about setting goals for you and the business.

Once you pass that hurdle and you still feel your idea works then you proceed to the financial section. How are you going to make money? Another common question is: “How much should I charge?” Who knows?? If you don’t I sure as heck don’t!! The visionary has to do the research and build his or her idea to the full potential that it is. Nothing is easy but when you create the foundation to your empire you can start to build a frame.

The best description of a business I ever heard was: “Buy it wholesale and sell it retail.” Other translations might go:”Buy it by the quart and sell it by the shot.” If you are making a profit in  your projections and you are being conservative, chances are you have a good idea. Often times people start a business out of need and because of this need they fail on the strategic planning part of the equation. Then when it fails, it’s always someone else’s fault. You have heard it before… Remember the days and months after 9/11. People were blaming their failures on the attacks. Don’t get me wrong. There were plenty of companies that were DIRECTLY affected. The remaining majority found it as an easy scapegoat that few would disagree with.

I’m telling you-all this not to make you upset but to realize your true potential. If you expect the unexpected and you roll your project out strategically you will be able to adjust and even in some cases predict paradigm shifts in the marketplace. Out of that chaos the shift creates is where you build wealth. Never forget that.