reprinted with permission from America OnLine's Your Business Newsletter, March 21, 1997

The early phases of starting a business can seem like an unending series of choices. A frequent stumbling block is "What kind of business should I start?" Some people are fortunate in knowing they will work in their trade, whether it be architecture, graphic design, or plumbing. Some are ready-made, such as franchises, family businesses, or even one of those countless e-mail messages touting "make money at home with your computer." For many of us, these are not the right fit. What we know is that we want to work for ourselves. But the nature of the work that will be pleasurable as well as profitable is elusive.

When you are looking to start a business that is truly new, there are five areas to explore that can focus your thinking and surface options.

1. Personal passions

What are the things that you are fascinated by and spend much time and, perhaps, money doing? There is no substitute for enthusiasm. So conduct an inventory of the areas in your life that hold your continuing interest. Was it stamp or baseball card collecting that you've always wished you could get back to? Are your favorite hours spent in the garden? Are you a Trekkie? Once you have this list, think about them and look around your world. Is there a need in that arena that is not being met? The obvious connection is often, "Open a store." That may be right for you, but look beyond that as well. Perhaps there is a business to be made consulting to collectors or in finding new ways to display collections or store them safely. Perhaps your gardening skills could translate to designing, planting, and maintaining the flowers on cemetery plots. As some have said, "Do what you love and the dollars will follow."

2. Irritations

Pay attention to the things that rub you the wrong way during the day. Does it irritate you that things fall over in the refrigerator? That your car is hot when you enter it? That the delivery man can only come when you're working? That your eyeglasses fog up? That your physician forgot to indicate non-generic on your prescription? That plates don't fit the kitchen shelves right? Each of these is what I call a "friction point" in life. If it bothers you, you know it bothers someone else. So, invent or offer a solution.

3. Technology Shift/Change

Look around and see what technology trends are. Consider computers, certainly, but look past them as well. What might a technology shift mean about how people live in the near future? Extrapolate a bit. Each technology shift creates opportunities. It often addresses one need and creates another. Cellular phones have been a boon to the small businessperson. At the same time, it has created an expectation of constant availability. So what might that suggest in terms of potential businesses? Is there a market for a "remote and knowledgeable receptionist" for small businesses? What about the Internet? How is that affecting consumers in their daily lives? Now or in the future? How is it working for -- or not -- the business community? What about the telephone menu -- press 1 for this and 2 for that? What has been sacrificed in this application of technology that there might be a market for restoring?

4. Social and Demographic Trends

Get a few issues of American Demographics magazine. See what's happening in our society. For example, the most disposable income resides in the hands of people over 50. What might that suggest about opportunities? Americans are spending more on leisure experience than ever before. What does that suggest? The two-income family has had significant impact on neighborhoods in the U.S. Explore that. What isn't getting done that used to? What would be a help to the families? What does the fact that there are fewer dogs in homes mean? Women are starting new businesses at a phenomenal rate. Why? What does that suggest for services to them that might be appropriate?

5. Tangential Markets

What's really hot now? Maybe there's a related market that spins off that. For example, baseball caps are huge now... with all ages, it seems. I've seen products that allow the owner to keep the hats neat when not in use. I've seen others that protect the cap's shape while being washed. Rollerblading is hot. If you don't do it yourself, talk to some rollerbladers. What's the thing that most bothers them about the sport? What keeps them from doing it more? Where do they store their equipment? How does the storage work? If they were offered a rollerblading vacation trip, would that excite them? Is there a market for gradations in rollerblades that relate to skill levels? Would a shopper's guide or expert review of equipment be worth money to them?

These five sources of ideas for new businesses have one thing in common. They demand that you pay attention to your environment. The beauty of the elegant solution -- the new business -- is often that, in hindsight, it seems so obvious. But inventing it was not obvious. It took sharp eyes and an open mind to make the connection between a need and a solution and to create something new.

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