Are you looking for the next Pet Rock, Furby or Red Bull?
Have an idea for the next new thing you know will make you
a millionaire?
Hold on there. Before you throw your life savings into
that "new idea", you may want to spend some time with the
tried and true.
Starting a new business with a new idea may sound exciting,
but you better have some deep pockets for your start up
budget. You also better plan on working twice as hard to
get income in the door.
Think about it. Your business is new. Your product is
new. You not only have to convince people they should buy
from you...you have to convince them they need your product
in the first place!
The number one thing you need to make your business
successful is income. Your first priority every minute of
every day should be making sales. Businesses with income
and profits survive. Businesses without income crash and
burn quickly.
Customers buy things they like and know. They are wary of
"new". Experience has taught them that "new" is not always
better.
Your new business has a much better chance of being
successful if you start with a product or service that has
an established market. By all means, find your own twist
and make it better than the competition, but please avoid
the unfamiliar.
Most fads are not overnight success stories.
Red Bull created the market for energy drinks, but the
founder lost more than a million dollars in his first two
years of operations. It took six years for the company to
become profitable. Dietrich Mateschitz has moved well
beyond millionaire status in the last 17 years, but he had
to come up with a million dollars in start up capital (half
was his) and risk his life savings to make energy drinks a
worldwide phenomenon.
Beanie Babies took off so quickly they seemed to be an
overnight hit, but the truth is that this business success
was hard earned. H. Ty Warner started Ty, Inc. in 1985
with a $50,000 inheritance, a home mortgage, and his life
savings. The company's sales grew to an estimated $1
billion in 1998 after Beanie Babies launched in 1993, but
Warner was not a newbie to the stuffed toy industry. He
had 20 years experience at Dakin Inc., a San Francisco
stuffed toy manufacturer, prior to his plunge into the toy
industry. He marketed another line of stuffed toys for
eight years before Beanie Babies were created to launch him
beyond millionaire status.
You may think your great business idea will be the next Pet
Rock (Gary Dahl became a millionaire in a matter of months
back in 1975), but your chances of this happening are a lot
like buying a lottery ticket. Lottery millionaires exist,
but a heck of a lot of people buy lottery tickets to create
that handful of millionaires. And a dollar spent on a
lottery ticket does not compare to all the life savings
wasted on unproven business ideas.
Running a business is complicated. When you start, it's
best to sell something that has a proven track record. You
will be better prepared if you spend a few years working in
your chosen industry before you start your own business.
If you don't have industry experience, make sure you either
beg, borrow, or buy a system to help you get going. Even
better, find a mentor that can help you through the rough
spots.
Save the new ideas until you have something going. If you
provide good service, sell a good product, and do what you
say you will do when you say you will do it, your income
will grow steadily. Establish your customer base first.
It's much easier to sell new products to customers that
already know and love you!
----------------------------------------------------
Todd Jensen, "The Profit Engineer", has helped hundreds of
business owners make their business more successful and
profitable. For tips and strategies on how to boost your
business success as well as increase your profits, visit
http://www.theprofitengineer.com or
http://www.freebusinessstartupinfo.com
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