My question to a new prospective client was, “what kind of business do you want to start”? The answer was “one that makes a lot of money”!
First a little background on my prospect; he has been in the corporate world since graduating from college (20 years ago); and in spite of having a six figure income, he wanted to work for himself. He was smart enough to save money, both to live off and a sizeable amount to start and build a business.
There is a discovery process that I use with clients that want to start a new business. I use the term new because there was no interest in buying an existing business. Most prospective clients who want to start a new business usually have a product or service on which they would like to concentrate. Their discovery process is more along the lines of a feasibility study looking at target market; identify the need, looking at competition, doing a startup financial budget as well as an income projection for the first two years. My approach if very conservative so the income projections are realistic, based on gathered facts and not blue sky optimism. This preliminary study tells us the total amount of capital needed to grow the business to where it is self-sufficient. It tells us about the market place, the competition and the risks and benefits.
Once these studies are finished, then a go or no go decision is made relative to the new business.
Without a definite product or service and having severed the ties with the corporate world, a business will have to be identified for this new client.
In this case the discovery process is centered, initially, on the individual. I use a “peel the onion” approach, where we peel back the layers that make up the individual. A few of the discussion are centered on likes and dislikes, hobbies, activities, work habits, family, etc. In each of these areas we complete an in depth, honest, structured self-evaluation. By working together we can identify one to three possible business alternatives.
Once that is accomplished we go through the same discovery process that was used when a client had already identified a product or service. Patience is required as this process may take three or more months to complete.
Find your style, your rhythm in life, your creative talents. As you accept and then develop your special individuality, you’ll be energized, positive and enthusiastic. Finding you will send you soaring with vibrant joy.
Nick J. Petra CFP Let us help you reach new business heights in 2013. firstname.lastname@example.org
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