This evening I had the chance to chat with one of my school ex-colleagues about starting a new business. It seems that he found out about the Small Business Entrepreneur blog and decided I’m the right “expert” to consult in regards of starting a business. I’ve decided to translate the chat into English and put it on the blog because it’s the typical entrepreneur versus fear of entrepreneurship talk and the outcome is quite interesting.
friend: Hi
cristian dorobantescu: Hi
friend: I was thinking to start a business and though to talk it over to you first
cristian dorobantescu: ok, how may I help you?
cristian dorobantescu: If I can help you with something, ideas, advices or just telling you about my experiences with running a business let me know
friend: ok
friend: I was thinking about a niche
cristian dorobantescu: right, so what will your business be about?
friend: exactly, that’s the question, it can be about anything, I just don’t know yet
friend: I just need to start something, then I will see
friend: something about offering consultancy could be easier, minimum investment
cristian dorobantescu: It doesn’t work this way, let’s try a different approach
cristian dorobantescu: What’s your current job right now?
friend: I’m working for some years now for an Insurance company
cristian dorobantescu: ah, that’s not a very good field to start a business
cristian dorobantescu: but anyway, you’re thinking to provide consultancy like in you tell me where to insure my car?
friend: not really, more about what to ask when you want to insure your car
cristian dorobantescu: I don’t think you will be able to make any money from it
cristian dorobantescu: ok, let’s go further. Why are you thinking to start a business?
friend: because I really want to put my efforts into something of my own
friend: and not working for the man and getting a lousy paycheck.
cristian dorobantescu: I know the feeling, but no matter what you do, in the first 3 years of running your own business you will have to work harder and for less money than you currently have
cristian dorobantescu: and there is no saying if after 3 years you will be successful or shutting down your business
cristian dorobantescu: anyway, you should start a moonlight business, keep your day job and work for yourself in the evenings until you see it’s working.
cristian dorobantescu: otherwise if you start a business full time, you will need to generate at least 3000 euro per month after 3 months maximum
cristian dorobantescu: and that’s just for surviving. So you will have to think about a business that is going to bring you this kind of money on the shortest term.
cristian dorobantescu: by the way, what can you tell me about the customers you get in touch at your job?
friend: corporate, only VIP accounts
cristian dorobantescu: hey, that’s perfect. You should spend the time until the end of the year tring to find out what your customers need.
cristian dorobantescu: because if you start a business, it’s easier to sell to people you already know and have their contacts
cristian dorobantescu: and if they are VIP and corporate, that’s even better
friend: I know, but what should I sell them, that’s the big question
cristian dorobantescu: well, that’s exactly what you will have to ask them. Don’t try to invent a business, just look for a need.
cristian dorobantescu: for example I would pay for the service of having my car washed while I’m at work
cristian dorobantescu: or get my car and get it services, nobody wants to spend time ar the garage.
friend: sounds like a good idea. I will make a survey or somehow try to find out more about their needs.
cristian dorobantescu: another way of finding your business idea is asking: what else would you like to do that is not related to insurance services?
friend: web
cristian dorobantescu: here we go, another idea.
friend: but the market is already crowded and I don’t really know how to code.
cristian dorobantescu: that’s crap. When I’ve started my Web Design company almost 4 years ago, I didn’t know to code. Still, somehow, now I have plenty of sites in my portfolio. Don’t ask me how I did it, because that’s your task of finding out what you need to do. It’s an entrepreneur task.
friend: ok then, what about funding?
cristian dorobantescu: money are just another resource a business use to run. Just like the employees, suppliers and banks. It’s just a resource you will need, but there is no saying what’s the hardest to get.
friend: you might just be right.
cristian dorobantescu: of course, nothing is that simple as it sounds
cristian dorobantescu: but if it would be very easy, then everybody would do it and nothing will be special about it.
