Working Solo Minute: Too Many Business Ideas?

Chris P. from Massachusetts wrote to me recently and asked:

I have several ideas for a business and don't know which one to pursue. I'd love to do them all. How can I choose?

Soloists are often brimming with ideas, and would like to pursue them all -- or at least several at once. In working with thousands of entrepreneurs over the past two decades, I've found that it is best to narrow your focus. The more you can be like a laser, the greater your chances of success. Diffused energy can't generate power.

How to decide? Here are three questions I pose to the solo entrepreneurs I work with:

1. How does this business idea match your skills and passion?
Look for a match with your background, skills, and passion. It's challenging enough to start a business -- don't tack on trying to learn a broad array of new technical skills or knowledge at the same time. Passion is a crucial element to take you through tough times. It also aids you in the selling process, since your enthusiasm will be genuine and infectious.

2. Is there a market for your business idea?
Just because you (and perhaps your friends and family) are enthused about your idea doesn't mean it will translate into a viable and profitable business. Be clear about who your customers will be, and if the market is big enough to support your enterprise. For example, if you live in a rural area and want to do exclusive catering, there may not be enough people within a geographic region to make your business a reality. Do your homework, and check out my article on "Six Ways to Test Your Business Idea."

3. How will you reach your market?
Once you've determined that there are enough people willing to plunk down their cash or credit card and pay for your product or service, determine how you will connect with them. Be realistic. If you want to start a business that caters to a specific target audience -- e.g, high-net-worth individuals, business owners, mothers, athletes, etc. -- do you travel in those circles? You can't gain instant credibility or access to a market, so pick one in which you already have some traction. And a warning: saying that "everyone" is your market is the kiss of death, because there's no efficient way to connect with "everyone" (in spite of the Internet).

It may have taken you only 60 seconds to read these questions, but it may take you weeks (or months) to answer them fully. Keep at it. Your answers will help you refine your ideas and become a blueprint for your business.

Have a question about your solo business that you'd like me to answer? Send it to me here. Those published in the Working Solo Minute will receive an autographed copy of my book, The Frugal Entrepreneur.

-- Terri Lonier
Founder, WorkingSolo.com