Time to go solo?
As the job market continues to be in flux, it’s no surprise that you may be thinking to yourself: Should I start my own meeting planning business? Although that may seem like a good idea now, there are (at least) six questions every entrepreneur should ask themselves before starting a new business venture, says Andrew Oman, founder of the Olive Tree Network, an entrepreneur development company. And while the rewards could be greater than a salary, so are the risks, he says. Which brings up the most important question you need to ask yourself: Am I ready for this?
Where to Begin
The Olive Tree Network is devoted to helping entrepreneurs in three key areas: evaluating risks, finding funds and getting started. But before you get there, Oman says that taking the time to answer just six questions can truly help you find your way.
“One of the greatest concerns that most entrepreneurs face is whether their business will be sufficiently lucrative to replace the income that they are giving up by taking themselves off the job market,” Oman says. “This concern is referred to as opportunity cost. By answering a few questions, most entrepreneurs can evaluate their business idea and determine whether this opportunity is better than working for someone else. These questions should be answered before spending the necessary time to develop a business plan.”
Ask Yourself This
1. What is your product or service, and how is it different than your competition? This sets the stage for the risk assessment. If your product or service isn’t very different or it’s not delivered in a unique fashion, you may already have the odds stacked against you.
2. What is your management background and expertise that allows you to provide your product or service? Your resume should be comparable to that of other senior managers in your field. Credibility is important to customers and clients, and if you haven’t walked the walk, people won’t believe you when you talk the talk.
3. Who will your customers be? If your customer base is rich with mass-consumer possibilities, or deep-pocketed clients, you’re off to a good start. If you can sell to a wide range of customers, you’ll have a better shot at meeting your business goals.
4. How will you market to your customer? Knowing your customer is important, but knowing them is meaningless if you don’t know how you’ll reach them to educate them on your company and sell to them. Marketing is a major expense, so understanding this strategy will also help you figure out how much capital you’ll need to make it work.
5. Who are your major competitors? There is a difference between entering a field that is new, with few competitors, and going against big companies with big bucks. You may need to raise more capital if you are going up against some heavy hitters.
6. What are your start-up expenses? Setting up an office, creating business cards, buying software and other costs need to be considered in order to determine how much funding you’ll need to take your best shot.
What Do Your Answers Mean?
“Regardless of your answers to the questions, the primary thing you need is passion for your venture,” Oman says. “You can have the best financial model, a receptive audience and compelling marketing, but if you’re not absolutely passionate about your new venture, you won’t have the drive it takes to bring it all to fruition. All you’re doing is going from one miserable existence working for someone else to another miserable existence working for yourself.”
What this means is, you need to choose an endeavor that makes you jump out of bed in the morning with anticipation for the day. You’ll then be equipped with 90% of what you need to succeed, Oman says.
How Olive Tree Network Can Help
Founded five years ago, the Olive Tree Network creates an outlet for entrepreneurs to socialize, as well as helps self-starters get on the right track. For meetings and event planners specifically, the company offers a variety of tools. However, “The [above] questions remain the same whether you are in a business or have your own; they are synonymous through any industry,” says founder Andrew Oman. “But the message I want to get across is that if you aren’t passionate about it, it’s going to be tough to succeed.”
Oman can be reached at 866-940-1417 or andrew@olivetreenetwork.com.