Dream Big, Plan Small!

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By Friedrich Haag, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=36033096
Do you have a big idea for a new business? Big ideas are fabulous, and they can provide you with a big payoff. On the other hand, they are often also riskier, more time consuming, and require a larger investment. So what can you do?

One way to manage a big business idea, is to dream big, but to think small. Consider your idea (a new restaurant, perhaps?) and think about whether there are mini or even micro versions of that idea. Using our restaurant example, you might think about a much smaller bistro space, and figure out whether you can make a decent margin using that business model. Or for an even smaller investment, a small catering operation with a rented kitchen might get you on your way, or even a #foodtruck or #foodcart. If you can start with one of those tinier businesses and have a plan to scale, you can reduce your risk at the outset, and build as you go.

Do you have any other big ideas you’d like to shrink down to a more manageable size (or have you used this approach successfully)? We’d love to hear your story.

​I’d love to have my own business – if only I knew what kind of business to start!

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Does this sound familiar? For me, I’m always surprised when I hear this, although I hear it over and over again. The easiest business to start is one that solves a problem, one that people will pay to have solved. Whether that’s creating delicious homemade cakes that make the person celebrating feel extra-special, to measuring air quality and helping clients to put systems in place to improve it so they can breathe better, or even providing custom home renovation services for someone with ideas but who’s all thumbs – businesses that solve problems or challenges are simply easier to sell. That’s because you don’t need to invest as much time educating the customer as to why they would want to solve that problem in the first place. They’re already actively looking for a solution!

Of course, the next step is a bit trickier: you also need to have the wherewithal to solve the problem. If you’re not a baker, or an environmental scientist, or handy with tools and building materials, none of our examples are going to be a fit for you. So what CAN you do? This is an area where mind-mapping can come in handy. The mind-map is a great tool for capturing a lot of free-flowing, uncensored ideas. Set a timer for 15 minutes – no more. This is more work than it sounds, and by then you’ll need a break from thinking. Get yourself a large piece of paper, or a white board, or a large expanse of wall and a stack of sticky notes. Start by writing down all the things you can do, that solve problems for people. Capture everything. Don’t try and narrow it down yet. What sorts of things do people ask you to do already, because you’re good at them, or you know how to do them in a unique way, or because those same people don’t know how to do them for themselves? Keep writing. If one “job” makes you think of another, great. Write that one down too. Just keep going until the timer tells you to stop. Although it might be tough to get started, I’m pretty certain you’ll be on a roll as you move toward the end of your 15 minutes. Ideas always bring more ideas.

Now, go get a drink of water, or a cup of tea, or take a little walk. Then  come back to your mind-map. It’s time to start sorting. Which ones do you really like doing? Which are you uniquely qualified to do, more than most people? And here’s the million-dollar question: which will people pay you to do? Often the things you’re best at, or that are most enjoyable, don’t obviously intersect with what customers will pay for. It’s up to you to find that intersection between work that works for you, and work that’s lucrative enough to make a living. So while I never advocate working at work you dislike every day, if something feels like a real calling, AND you feel like you’re fairly compensated for doing it, you’ll be much more likely to stick with it when your business hits its inevitable valleys.

Do you have some ideas that look like they might actually be the start of a business? Great! Next time let’s talk about ways to see whether customers really will pay what you think they’ll pay – or in more technical language, defining and validating your value proposition.

Don’t Spend Money on Learning

Hands with money and plant

Invest it!

Too often, business owners and entrepreneurs forego educational opportunities and occasions to learn because they cost money. Oh, they’ll spend money on advertising, or sales collateral, or even a new point-of-sale system. But when it comes to researching customers to serve them better, or worse yet, adding new skills  to their own personal toolkit, they try to only use the “free” option. This is wrong-headed thinking, in our opinion. Why do we think that?

We believe spending money to learn is an investment. Investing in customer research can help you target more effectively, or move into more productive markets. Investing in tools or skills that make you more productive and a better seller will pay dividends to your business in short order. Thinking of either of these things as “spending” is a little like saving for retirement by putting your money in a sock under your mattress.

Of course you can’t invest your money everywhere – so just like that retirement fund, you’ll need to do some research to find what works best for you. And also like your other investments, you may have trouble figuring out just what that is. If that’s the case, find yourself a coach who can help you evaluate your options.

There’s a new skill or new information out there that will help your business grow. Start looking for your next investment, today.

I’m Megann Willson, and I’m one of the Founders and Partners at PANOPTIKA. If you’re having trouble prioritizing your career or business investments, I can help. With frameworks to help allocate their resources, we help our clients make better decisions. Feeling social? Follow on Twitter, on LinkedIn, or on Facebook. And if you want business and career tips, book recommendations, and more, push the button below to subscribe to our weekly news.

 

What if we can’t come up with any ideas?

Wall with many post-it notes

 
Worse yet, what if we can? 

It’s a funny thing, idea generation. Once the first idea comes, it can sometimes feel like a floodgate has been opened – and it leads to another, and another. Before you know it, you’ve generated more ideas than you know what to do with. How will you ever rein them all in?

Next time, you might want to start by putting some constraints on your ideation process. Take time to frame the session with any limits that are non-negotiable:

1. We only have a thousand dollars to spend
2. There is a one-week timeline to complete the prototype
3. We have to be sure that students can complete the projects without parents’ help

Each constraint allows for a bit of sorting along the way and, surprisingly, often result in even more imaginative solutions.

That’s not the problem at hand, though, so how can you prioritize? This is where frameworks come in handy. Using something like Product Tree will let you use metaphors to narrow down that overwhelming pile of ideas. As an example, the trunk of the tree can represent the job to be done. Branches can stand for approaches, and leaves for ways of implementing that approach. Where the tree really becomes useful, is when you start looking at the roots – they’re the resources, effort, or infrastructure required to actually bring the ideas to fruition. We’ve found that getting people back down to ground level, looking at the roots, is one of the most effective ways we can think of to eliminate ideas that are not possible (or not possible for now).

Every great idea has limits – so the next time you’re planning for creativity, you may want to make life a little easier, by using a framework to establish some constraints.

We’re Megann and Steve Willson, the Partners behind PANOPTIKA. We help you see everything you need to know to make better decisions, so you can find, understand, and engage with your customers. You can also find us on Facebook, Twitter, or LinkedIn. If this blog was useful for you and you’d like more ideas like this, subscribe using the handy button, below.