Ep 180: How to Choose the Right Business

How to Choose the Right Business

I spoke at a college this past week and this was the biggest question asked of me: How do you find a business to start? Every  thinks they need this “ah ha!” moment. They’re all looking for the billion dollar idea that Shark Tank has spoiled people into believing they need.

So what do I look for? How do I find a business to start? What do I personally do?

Is there a need in your area?

It’s that simple. Have you tried to get something done and there’s no one there to do it.

I could start a business in ten minutes. A furniture repair company. I just broke a piece of furniture and I can’t find anyone to do it.

Hanging Christmas Lights? I don’t want to hang Christmas lights. I’d rather to pay someone else to do it.

I started an auto-detailing business because I wanted someone to come to my location and clean my car while I was at work. So I started WaxMaster Mobile twenty-five years ago. America’s Choice in Detailing. Made me $30k in passive income before I sold it. I split the company 50/50 with my partner who did the labor. It was based on solving a need.

Then when I moved to Virginia, I couldn’t get a handyman. I had my magazine business, working from a home-office, and wanted to get a chandelier taken out of the ceiling. I just wanted recessed lights and couldn’t get anybody to do it. Couldn’t get an estimate and then couldn’t get a guy to come do it after giving me an estimate and then the one guy who actually showed up to do it would work one day and then not work the next. This was like a few-hour job took which them forever to get it done. It was crazy. And of course he charged me more than what he said.

So I started a handyman business that’s made me millions and millions of dollars because I turned customers into raving fans and turned the business into eight different companies. But it started with just solving a need.

Is there a problem that needs solved?

Listen to adverts on the radio.

Want to get out of your time share?

Having tax problems?

Having problems sleeping?

All of these adverts are proposing solutions to a problem, whether it’s the guy who will get you out of your time share, or Mike Lindell trying to sell you a better pillow.

Is there not enough competition in your area?

Other companies are booked out for six weeks. If you can’t get anybody to do it, there’s not enough competition there. There’s not enough businesses there and that creates an opportunity for you to build one and take that business.

Do you have a captured audience h2

Like a neighborhood or a group of customers centered around a product like Jeep. Jeep has a loyal following centered around a customizable vehicle. Pet’s Mart did this. People love their pets and at now you can buy gourmet dog biscuits. Mobile churches. A lot of churches now are mobile and move their equipment around from place to place. Someone created a business to sell equipment that can be quickly and easily set up and taken down.

Is there a model you can copy?  

Target is a higher-end copy of Walmart. Burger King and McDonalds. Costco and Sam’s Club. These are examples of copies that successfully model the core of a successful business yet put their own twist on it.

Have you experienced poor service or a great experience?

Maybe you’ve experienced something awful and have a method to improve it. Just like the handyman company I started. I received poor service and saw the ability to improve it and make money.

On the flip side, maybe you’ve come across a new experience that is an impactful way of serving the customer. The first time I went to Sweet Frogs, where you serve your own soft-serve yogurt and add toppings was a great experience. There’s room in a self-serve ice cream niche like that.

Do you have an expertise or a skill that your current employer is charging a fortune for?

You can turn your expertise into a business.

My friend is an excellent roofer and knew he had tremendous expertise in this area. He was not going to make someone else rich so he turned it into his own business.

These are the easiest ways to choose the right business.

 

1. Look for a need.
2. Solve a problem.
3. There’s not enough competition.
4. You’ve got a captured audience.
5. You have a successful model to copy (with modification).
6. You’ve experienced something poor or fantastic.
7. You have an expertise or a skill that your current employer is charging a fortune for.