While speaking at conferences and attending networking events I am often confronted by people who ask me "Graham, I'm thinking about starting a business, what business should I start or what industry should I focus on?"
My automatic response is "what is your area of expertise, your passion or where do you feel you are able to add real value to potential clients?"
It's impossible to really answer the first question without truly understanding the person I'm talking to. Furthermore, all businesses are out there to make money, yet each business chooses a different mechanism with which to generate the revenue.
After all entrepreneur who start businesses are merely problem solvers, as they identify a problem or need being faced by others and they solve it at a profit!
So my question to any business owner or person thinking about starting in business is "What problem do you solve or need do you fulfil?"
In answering this question it's useful to think long and hard about your target client, what is it that they really need / want or have a problem with?
Sometimes they don't even know they have a problem until a solution is highlighted to them. Take for example the internet, no one really knew that we needed it until it was offered to us, the same goes for mobile phones, cars, aeroplanes, electricity, washing machine, cats eyes, etc.
In creating a clear purpose for your business you need to be clear about:
- who your target market are?
- what their wants and needs are?
- how you are able to meet their wants / needs?
- what your are aiming to do to continue to meet their needs both now and in the future?
Remember, being the creator of a new idea is often not the best and most profitable route, sometimes it is better to find someone else who is already solving the need, but do it better!
