County Agent News

Dan Folske

April 11, 2011

Find the Right Idea for Your Business

A common questions prospective business owners ask is, “What business should I start?

Even for those entrepreneurs who have an interest in a certain broad area, the struggle is narrowing it down to a workable idea. So how can you decide on what business you should open?

“The first thing to realize is that successful businesses depend on three key criteria that need to be considered,” says Glenn Muske, rural and agribusiness enterprise development specialist for the North Dakota State University Extension Service. “By themselves, each criterion helps, but it is the synergy of all three that can lead toward success. Often someone is told that he or she has a great idea only to find out, after spending time, money and energy, that the idea is not a viable business opportunity. "

Here are the key criteria in selecting a business idea:

* Recognize that good ideas do not automatically translate into viable business opportunities. You need to understand what you want from the business or what makes it a success. A financial return is one element, but other elements include freedom to make your own decisions, ability to take time off, being able to spend time with your family and being your own boss.

* You need the passion to start and operate the business.  Running your own business sounds great, but think of doing it 24 hours a day, seven days a week, for 10, 20 or more years. Will you maintain your passion? And can you maintain it during good times and bad?

* Determine if you have a market for your idea.  “Business owners must do more than assume that everyone is waiting for their idea,” says Muske. “This is as much of a myth as the related myth of ‘build it and they will come.’ ”

To give yourself the best chance of success, you must determine:

* If your product or service is needed

* Whether you can get your product or service to those who need it

* Who your competition will be

* Whether you can start a business and make a profit

“Thus, having a good idea helps, but knowing who your potential customers are and being able and willing to solve their big problem day in and day out means your idea is much closer to a true opportunity,” [insert last name] says. “So if you have that burning passion to get into business for yourself, take some time to explore these three criteria for successful businesses. Time spent now will enhance your chance of success and minimize some of the roadblocks you will face.”

The NDSU Extension Service has resources to assist business owners in their search for a viable business idea. Contact your local Extension office to learn what assistance is available. Information about some of Extension’s programs also is online at www.ag.ndsu.edu/ccv/.

eXtension, an educational partnership of 74 universities, including NDSU, that provides objective and research-based information and learning opportunities to help people improve their lives, is another resource. Visit www.extension.org/entrepreneurship.