Are you ready to start a business? Read this first.
This is the 22nd book in the series Learning Together and Leading Together where we are going through the Personal MBA plan curated by Josh Kaufman. Our goal is to get through 99 books this year. Do we read the whole book? Nope. We digest the summary(s) of the book and I give my thoughts and you give your thoughts. Feel free to follow along and comment if you would like.
The best summary I found can be found here and is quoted below
A site dedicated to the book can be found here: http://newbusinessroadtest.com
So what does a proper road test of a business idea involve? “Testing The Seven Domains of Attractive Opportunities” says Mullins. Below you will see the best questions to ask when it comes to the seven domains. Ask these before you start your next company.
Seven Domains and Questions
- Is there a target market segment that allows you to offer customers clear and compelling benefits which are superior in some way to existing benefits?
- Can the segment provide a platform or launch pad to support future growth of the business?
- Is the market large enough to allow different competitors to serve different market segments without cutting across each other?
- Do current and future trends indicate that short and long term growth in your market is sufficiently encouraging?
- Are you in a good industry; check five dimensions – the threat of industry entry, the level of supplier power and buyer power, the threat of substitutes, and how competitive industry rivalry is.
4. Sustainable advantage:
- Can you stay ahead of the rest? Look at factors like proprietary elements of your business, superior capabilities that are difficult to emulate, and the viability of your business model.
- Are you committed to the cause? What are your goals, what is your vision? What are your aspirations? What risks are you prepared to take chasing your dream?
- What are the critical success factors in your industry? Can you and your team deliver on them?
- Who do you know up, down and across your value chain that can help you realize your ambitions?
Notice that starting a business is not an easy task. Sure you may have an incredible idea that you think no one has thought about but that will only get you so far. That is why 80% of companies fail in the first 5 years. To make it past the 5 year mark you must wrestle with the questions above.
One of the major things that I hope you realize when you answer these questions is that people who you surround yourself with matter more than the idea that you come up with. This life is to short to not work with people you love to be around. Your team will matter more than your profits. Your team will matter more than your products. When you win together and tackle these questions together then you will handle the ups and downs of business creation.
How do you answer these questions above? What idea are you trying to get off the ground?
If you need a hard copy of the book go here: [amazon_enhanced asin=”129200374X” /]