Today at TILE we talked about learning by doing… Putting what you learn in the classroom to use in real life. Specifically, we talked about walking the entrepreneurial walk after cooking up an idea. How do you turn that great idea for a business into a great business? Does SWOT apply to your market position or is it something that kills insects? How can passion translate into real success?
We attended the Junior Achievement Business Plan Competition at Nasdaq last week, where we watched six teams from local high schools compete to win the grand prize – real money to invest in their business, plus a chance to ring Nasdaq’s closing bell. We were really impressed by the ideas, thoughtful plans to turn those ideas to action, and the obvious passion of the team members.
How often do you say, “There should be an app for that” or “This would be a great business?” Would you know where to start if you wanted to see your idea come to life? A good way to begin is by trying to answer questions like What is the product? How does it work? How will I make it? How will I market it? But that’s just the tip of the iceberg. You’ve also got to dig into the specifics – How many customers do you need? How much will you charge? Do all the numbers add up?
These questions will either increase your conviction or make you say, “maybe it wasn’t such a good idea.” True, it’s a lot to ask – but it’s not like answering questions to pass an exam. Rather these are questions (and answers) that help you make good decisions. And just like a piano player who practices before a recital, practicing your Q & A skills will make you more confident and a better decision-maker.
How do you know what to ask yourself? Remember SWOT? It stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT is a business tool that helps you asses a position relative to others. Start with the big picture (why does it matter, how many people need/ want this) then keep getting more specific (who else competes in the space, why is your approach better) and then get to the details (numbers!). Business plan guides can be a great help, too. Don’t worry about answering every question right away; focus on going through the process – that’s your training.
Most importantly, you need to ask why is this important to you? Do you get excited? Nervous? Do you want to tell the world? That is a common trait among entrepreneurs… and it is that passion that will feed you (even during tough times).
What does this mean for the TILE community? If you have a great idea or a passion for something, don’t let it go into the “what if” bucket. Start asking yourself questions to see if it really is the next great thing. Even if it isn’t, you’ll learn a lot by going through the process (i.e., learning by doing). That practice will set you up for your next big move!
- Amy