Category Archives: Getting Started

Burn Your Business Plan

Write a business plan.  Or not.

start a business after 50

pixabay.com

Every time I see the recommendation to entrepreneurs to write a business plan, I am overcome with weariness.  Business plans suck all the energy and enthusiasm out of your idea and require weeks (if not months) of work–time that would be better spent testing and refining a possible product.  They may be based on solid research, but without first-hand market feedback, a business plan is a work of fiction.  And it doesn’t really tell you if your idea is any good.

In the words of lean start-up guru Ash Maurya, “Life’s too short to build something nobody wants.”

Do This Instead

Unless you need a business plan to present to bankers or investors, there is a better use of your time, one that is a more direct way to refine your business idea.  By borrowing the fast prototyping model from the tech industry, you will gain first-hand market knowledge that is invaluable.

The process is described in the following series of short videos from Business Town:

Turning Your Idea Into a Business :  Get focussed by boiling your idea down to one sentence that says what you do, how you do it, and for whom you do it.

Cheap and Fast Market Validation Tools  Thanks to the interwebs, you can inexpensively test a product idea.

The Prototype Development Cycle:  If you want to sell a product, you need to have something to show people.  Here are some ideas how to achieve that.

How to Prototype a Service:  No product?  No problem!  Tips for creating a professional appearance for your business, even if you’re just starting out.

Small Business Ideas for Retirees

Over 50 and thinking of starting a small business?  I bet you’ve been googling, “what business should I start?”  I’ve tried it, and as a result I’m not a fan of lists that tout the “Top Ten Businesses You Should Start NOW.”   I think they’re too general, and written by journalists, not people who have actually started businesses.

Small business people using laption

Small business using laptop, dreamstime.com

But I liked this list from Business News Daily  aimed at over-50’s.  It has realistic advice about using your existing skills and experience. 

Be Creative?!? Please…
I don’t love the final tidbit to “be creative.”  Otherwise, I think it encourages retirees to claim their expertise and knowledge.

One Caveat
It’s good advice, although I don’t know the alleged experts they mention, nor the books written by them.

Another Viewpoint

Here’s a list of suggestions from readers, from Retired Brains (I love the name!).  They are real life, easy-to-start businesses that draw on real-life skills and experience.

Answer These Three Questions

A recent blog post by Leigh Johnson, of She Loves Life Over 50, caught my eye.  Johnson has a career in recruitment, and has learned to read people pretty well.  Johnson suggests answering three questions when considering a job.  I think the advice applies equally well to starting a business.

  1. What energizes you?  Choose a business that will optimize your time doing these things.
  2. What is effortless for you?  This can be the gift you use to provide exceptional service.
  3. What do you need to be most effective?  This can be anything from dedicated studio space to a mastermind group to outsourcing the onerous chores that free up your energy and creativity.

Read her post here.

 

Business Myths Deflated

I’ve enjoyed Bob Adams’ BusinessTown site for years–I thought it full of well-written, practical business advice.  The site now features lots of videos by both Adams and industry experts.

Here’s one I really like, that applies to anyone contemplating a business start-up.  Adams’ style is so rapid-fire that he may be off-putting for some, but the information is solid, and he speaks from a long career as an entrepreneur.

5 Myths about Starting Your Own Business

 

Starting a Business: The Only Two Things Your Really Must Do

You don’t need a business plan, or twelve social media platforms, or a loan.  Not really.  All you really need to remember are two things:

I.  Meet a need or solve a problem (for people who can pay you).

That’s why customers are willing to part with their hard-earned money—you’re solving a problem for them, or meeting a need.  Notice that I didn’t say do what you love to do and people will, of course, pay you.  Your customers don’t care about what you love.  They care about themselves.  We’re all like that.

You’ve all seen the exercises where you list your skills, experiences, dreams, messages channeled from your spirit guides, etc. and then massage all that into a business Idea.  That’s great, but I think a better way is to look at those lists and ask yourself how you can help others.  Asking yourself how and where you can serve may smack of joining a religious order, but that mindset will take you a long way when we get around to talking about customer service.

Problems are self-explanatory, but needs seem a little harder to define.  Some people need a Ferrari.  That’s because needs go beyond food, shelter and clothing.  We have needs for belonging, status, love, enjoyment, entertainment.  Meeting any one of these needs can be a business.

Also notice I said, “customers.”  These have to be people who can pay you.  A food bank solves a problem, but the people going there aren’t customers.  Your customers don’t have to be billionaires, but they do need to have some money to spend, and there have to be enough of them.  Define your customer.

And while you’re looking, look for your niche—something you can specialize in.  Don’t think that just because something is easy for you, it’s easy for everyone.  So easy that no one would pay you for it—those are probably your most valuable skills.

II.  Spend less than you make.

You can be profitable and still go broke—by running out of cash.  Watch your equipment purchases, deposits–anything that requires a cash outlay. 

Yeah, yeah, there’s marketing and operations and the rest.  But if you ignore these two rules, all that other stuff won’t matter.