This week I having a very familiar meeting coming up. I am sitting down with someone who has contacted me regarding doing a ‘Start -up’. As my start-up business has grown, I have received requests for a meeting like this on more then one occasion. And I love it !!!

I really enjoy discussing start-ups and the entrepreneurship process. I enjoy hearing about people’s new ideas and seeing the excitement they have for getting started. I remember that feeling of excitement and nervousness. Not knowing really where to begin but also being worried that the next time I turned on the TV…there would be my idea. I remember the day dreams about what my company might look like or how it could change an industry or maybe just provide me the freedom to do what I wanted…when I wanted.

Over time, I’ve put together a brief outline of my thoughts and suggestions on ways to get the ball rolling. The First Step that I always tell people is RESEARCH.

I. Research

It sounds so basic, but you would be surprised how overlooked it is. You might have the greatest idea, but after an hour online - you could find out that you are too late. Assuming that’s not the case though, research is absolutely square one when you have your idea but don’t know how to get going.

  • Start looking into the industry itself, who are the industry leaders, what is the size of the market
  • Start printing up articles that talk about changes in the industry, if you are creating the market - find a comparable industry to research.
  • Start a list of helpful websites and resources to use for future research
  • Gather information on how to write a business plan (This will become increasingly important later on)
  • What type of Business do you want to set up: LLC, S-Corp or Sole Proprietorship
  • What are the pros and cons of structuring your business this way
  • Where is the industry heading - growing or declining ?
  • Start a to do list for the coming weeks - things to research and possible small steps to take.

( Don’t be afraid to print out a lot of things pertaining to YOUR idea or company idea…you are just getting a broad view of things right now)

During the Research phase you are trying to accomplish several small goals that you may or may not be aware of. You are trying to create a base of information that will slowly grow. What may start off as a folder today should become a file cabinet full of information in the future.

Besides collecting information on your ’start -up’ you are trying to uncover any potential major road blocks that exist. It’s important to know about problems that could end the company before it got started or larger barriers of entry into that industry.

You are also starting the process of becoming an expert in YOUR industry. For example, if you are starting up a shoe store, you need to know about the industry - not just guessing or repeating things you have heard. You need to know things like what Americans spent on shoes last year, how many shoes stores are in the US, how many are in your state, how many are in a 10 mile radius. You should know a realistic number of how many shoe stores started up last year and what percent are still in business. You should also start looking into the different types of show stores (warehouse mega stores vs mom and pa shops). Where do shoe stores get their inventory and what is the average cost. All of this information will help you to know the potential of the company and what numbers to start using for a basic budget.

Becoming knowledgeable in your industry will help out immeasurably down the road. You will have a good start to your business plan and you will be able to talk with a wide range of people in and outside the industry. You will also be able to narrow down what ‘type’ of start-up you want- the more focused you can become about your start up- the better. Also as you research the potential for your idea, you will also gain confidence that you can make this start-up work . ( Confidence is VERY important)

In the end, research is trying to see if your start-up is possible. Can you sustain that start up and make money doing so. In the beginning you have the idea, you need to do the research to back that idea up - because in the future you will need to convince others that your company will be successful.