THE KISS PRINCIPLE IN MICROBUSINESS

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CHAPTER 2


MY BUSINESS IDEA

By reading  this website, I have taken the first step toward my dream of starting my own Microbusiness.

At the moment, however, it is only a dream and I am not sure if my idea can be translated into a business, or, I may not yet have defined my idea for a business.

Where do business ideas come from? How can I find one? Can I test my ideas to find out if they are sound?

Basically, I can find business ideas in four main areas: invention, observation, someone else's omission, permission.

 

INVENTION

Each day, all around me, I find my life made easier by inventions, either products (computers, airplanes or disposable diapers or processes (chain assembly, conference calls or microwave cooking). My idea can come from either a new or better product or a better method of doing something important. The best example of a microbusiness started by a new product is the Apple Computer, started in a shed. A better process can be exemplified by Cable T.V., started by local TV repairmen, in remote areas, to bring choice in programming, to customers living in isolated communities. Is my idea for a new business along these line?

 

OBSERVATION

How often have I not said to myself: "If I ran this business, things sure would be different" or "Why don't they provide this service?" These observations or questions can lead me to a sound business idea. If I find an unfulfilled need, I can build a business by simply supplying this need. A young California entrepreneur detected a strong need for status conscious Californian motorists, and invented the fake cellular telephone. It looks exactly like the real thing, including a fake antenna, and costs only $15.95. It is called the Cellular Phoney. She has sold more than 40,000 fake phones. Simple observation led to this success.

 

OMISSION

The vacuum created by danger, repugnance or boredom in certain jobs has led to the creation of very profitable businesses. As an example of dangerous occupations, I can think of businesses concerned with putting out oil well fires, the handling and disposal of toxic wastes, diving to clean sewer pipes or to weld underwater or to look for lost golf balls. Repugnance has been at the origin of such businesses as, garbage collection or disposal, reprocessing waste, cleaning out septic tanks or driving a taxi.Business have been created to take on boring jobs, such as, stuff­ing envelopes or assembling components or simple products. Is there some service that nobody wants to do, that I could start my business from?

 

PERMISSION

Today's hottest business concept is franchising. Franchising, simply put, is the permission to sell a product or service, under controlled circumstances, in a specific territory and at set prices. The most successful example of a franchise is McDonald's, the home of the "Big Mac".. Another type of business resulting from a permission is the Licensing Agreement. A foreign or far away Company will grant someone the permission to sell its product or service, through licensing, against a per unit royalty. This licence will determine the territory, if the right is exclusive or not and the amount of royalty per sale. A licence is much less restrictive than a franchise and can also apply to manufacturing a product. Licensing is often obtainable for free, whereas franchising is not. It usually has a limited life, franchising is forever.

 

Following is a WORKSHEET which will help me define my business idea, describe its advantages and get me started on my journey toward my own microbusiness.