Four Tips For Starting Up In This Economy

As much as it may feel like we're still in the trough of the economic 'correction' (to be polite about it), it's probably a great time to start a business. The competition is relatively quiet, some of the shakier competitors may have bailed by now - so what' stopping you?

To successfully start a business, you need four things: a great idea, an actionable plan, financing and tenacity. If you have enough tenacity, you generally also get a bit of luck as a side dish. So, to go along with your four elements, here are four tips for starting up in this economy.


TIP #1
Re-evaluate your idea.
Suppose you think you already have a great idea. Re-test your assumptions. Ask a few strangers about it. Your friends and family will shine you on because they love you or they are blinded by your immense talents. Either way, friends and family are NOT a good indicator of a good idea.

Also, be sure to re-evaluate your idea in light of this 'new economy' - the structure of the new economy is not entirely clear yet, nor is it settled in any meaningful way. So, it's hard to declare your idea is suitable to this new economy but if your idea is, say, sub-prime mortgages, you might want to re-think it.

TIP #2
Take whatever estimates you have for start up costs and multiply by 4.
No, not 2. Don't cheat here. You need the ice cold water of financial reality to shock you into understanding that it takes longer and costs more than you can currently imagine. Don't let stories of 'overnight' success sway you. Most famous actors and musicians will tell you that their overnight success came 10 years into their careers....

TIP #3
Take your revenue estimate for the first three years and divide by 2.
Yes, this too seems harsh but most entrepreneurs are optimistic by nature (scratch that - successful entrepreneurs MUST be optimistic by nature). Being optimistic is a requirement for the job, but there a difference between being optimistic and being delusional. Be realistic and optimistic and you'll position yourself for success.

TIP #4
If it feels like you're banging your head against the wall, stop.
Being tenacious is not the same as being stupid. Stupid is trying the same thing over and over and hoping for different results. Tenacious is giving something a few tries then trying something else. A slightly different angle. A slightly different approach. Learn to be intelligently tenacious and you'll find you get a couple of great ideas that lead you in the right direction. Is it easy? No. Will you know when to quit trying one approach and consider another? Maybe not. But if it feels like you're knocking yourself out over and over, that is a clear sign that you should stop and re-orient yourself and look for another approach to the situation.

That's it for today. Thoughts and comments always welcomed.

Want help getting started? Visit www.virtualteam.com. Accelerate Your Success (sm).
Want to see a start up in action? Visit www.shopOrganic.com. For The Greater Goods (sm).