People often ask me how to start and grow a successful business. When they do, I usually respond, well, it depends on the kind of business you’d like to start. On one hand, there are people who buy existing businesses and, through creativity and tenacity, take them to the next level. But I think most people who envision themselves as entrepreneurs fall into a different category: those who have an idea that they believe is good and want to start selling something, whether it’s a product or service.
I was among the latter group back in 1981. I had just returned to Canada after several years in Europe playing professional hockey, and my brother Bill and I were looking to start our own business. That’s when we founded our advertising specialty company, Array Marketing. Eventually, we entered the pharmaceutical and cosmetics industries and grew our business to what today is an award-winning marketing company that specializes in developing and manufacturing retail merchandising and display systems.
Here’s what I’ve learned over the years about developing a business: everything begins with a good idea. There’s a story, which may or may not be apocryphal, that a very young Walt Disney drew a sketch of a cartoon mouse during a train trip to California. A good idea eventually became one of the most recognizable brands in the world. Of course, success didn’t come to Disney overnight. It took countless long hours, lots of hard work and numerous rejections and disappointments before the pendulum began to swing in the other direction.
Ideas are wonderful things. When you have a good one, the sky’s the limit. The thing about taking an idea and turning it into a business, though, is that it needs to be marketable. This is where entrepreneurs need to ask themselves early on who their audience is and whether their audience will support their dream.
Once you’ve developed your idea to the point where you feel comfortable taking your idea to market, take the proper steps to legally protect your intellectual property. This might mean applying for patents on anything that’s proprietary.
Also, conduct some informal research to assess interest in your idea. Ask people you know “what if?” If you have a mentor or someone else you trust, seek advice. Get their feedback. They may have questions or ideas you haven’t yet considered.
Next, consider its potential as something that will generate revenue. Is there a need for it in the marketplace? Who wants it and how much are they likely to pay for it? Is there anything similar available, and if so, what makes yours unique or different? What is your value proposition? What kind of investment will it take to make it happen?
Once you’ve answered all these questions and you’re satisfied that you have something the public (or your niche market) wants, then look at logistics. Think about how you’re going to make it, name it, brand it, distribute it, market it, build an audience for it, and continue to foster demand for it. Sustainability and continued profitability are key considerations. You’ll need cashflow to build and grow your company, so do some serious, honest sales projections.
Finally, when you’re convinced you have something that the marketplace will support, put it out there. Start small with a test market or two. Observe how it does. Modify as needed. Promote via a variety of channels but especially social media. If it starts to take off, keep the momentum going.
Many, many businesses are launched each year. Of them, quite a few succeed while others don’t. Considering all the factors before hanging out your shingle and addressing all possible questions will go a long way toward positioning it for potential success. Good luck!
