Archive for Business Idea
How do I know if my idea is a good idea?
Posted by: | Comments(This article originally appeared in print for BizNess Magazine)
In my previous article we talked about “where do good ideas come from”. In this article we will discuss how do you know if your idea is a good one.
Every week people come to me with business ideas and 80% of the time I try to talk them out of it. It pains me to see people throwing good money after bad ideas or even taking good ideas, but executing them horribly.
But let’s say you have an idea your excited about. The first thing you should do is some basic research online. If you think you have a unique idea and that is what is going to be your selling point, then you need to make sure it is unique. You can start with Google and search for key terms about your idea and industry and see what comes up. If your idea is an internet based idea then a great site you want to check out is http://www.go2web20.net it’s a directory of all the latest internet startups and you can do a search by keyword.
Another idea you can do is go to a domain registrar such as Dynadot.com and start checking for what you believe would be the perfect name for your idea. Search for 10 different names and see if the names are not available perhaps there is a website already live that is doing what you just thought of or something similar.
You also want to search on blogs such as TechCrunch.com and Mashable.com since they have been covering startups for the last several years. Keep in mind that even if someone is doing something similar, it does not mean that you don’t have a shot at success. No two companies are exactly alike and competition just proves there is a market for your idea.
Also it is important to keep in mind that perhaps your idea exists in other locations or countries, but perhaps does not yet exist in Israel. For example: Instead of opening yet another pizza shop, why not open a healthy fresh sandwich shop? Subway’s has been the #1 Franchise for a number of years now, so just follow their model!
My latest startup is a company called SportsFan.me. It is a cross between Facebook & Twitter for sports fans. In my presentation to investors I list 12 different companies that are in the same space as me, but I can also show how what is unique about us and how we are different. It also doesn’t hurt that sports is such a huge market with plenty of room for competition and niches.
So now that you know your idea either doesn’t exist or it doesn’t exist with the nuances you have for it or it doesn’t exist locally, now it’s time to start speaking to people.
There are 3 types of people you need to speak to before starting a business:
- Your Spouse
- Accountants, Lawyers, & Businessmen
- Potential Customers
Your Spouse
Starting any business takes a huge commitment and toll on your family and the surest way to success or failure is the support of your spouse. Make sure she/he is on board with your idea as there will be many long hours and a ton of focus that your startup will need. The more time and focus you put into your business means less time and focus for your family.
Accountants, Lawyers, & Businessmen
You should go over your business model with a business accountant and make sure that your startup is viable. If you’re opening a restaurant you need to keep in mind the taxes you need to pay and the costs for Employees and benefits you need to provide plus the cost of hashgacha and having a mashgiach on premises; Ongoing advertising & marketing costs etc. At the end of the day you may find that in order to be successful you will have to charge prices that people won’t be willing to pay or you will have to give smaller portions that won’t make customers happy.
It is also very important to speak to your lawyer and get his feedback and advice. Make sure everything you are doing is legal and realize what the ongoing legal costs if any are. Also many lawyers may have connections to other business people or investors so it’s good to discuss your project with them.
Now the most important person in this category to speak to is a successful businessman. Doesn’t have to be someone local, but it is best if you can meet him in person. It is also better to speak to other people in the industry you are entering. Don’t be so worried about someone stealing you idea, it almost never happens. A great way to find people in your industry is using LinkedIn (http://linkedin.com). LinkedIn is a Social Network for Professionals and Entrepreneurs. They have a group feature which allows you to communicate with other like minded people and to discuss specific industry topics. I have joined several groups in the professional sports industry and that way I can keep tabs on the latest on what’s going on in the business of professional sports as well as meeting other people in the industry. You should post questions to the group and join the conversations taking place. This is a great way to meet people and to find the ones that can be of most value to you.
Another great website to check out is Quora (http://quora.com). Quora is a Questions and Answer website for business topics. You are not allowed to promote your business on the site or you may be banned, but it is a tremendous resource for almost every topic imaginable when starting a business. It is also a great place to interact with well known and successful entrepreneurs who often use the site as a way to give back to people by contributing.
Potential Customers
This is the most critical of the research you must do as well as the one that is most often overlooked or skipped over. You must, must, must speak to potential customers before you invest any money in your idea! I cannot stress enough how important this step is. You may think that if you love such a product then everyone will love that product to! There are two questions you need to ask:
- Do people want the product you are offering?
- Even if they want the product, are they willing to pay the price you need to charge?
If your product is geared towards Mothers then contact 100 mothers and ask them if they would use such a product and then ask if they would pay for the product and how much they would be willing to pay. Also ask them if they could improve the product how would they do it? Very often discussing your product with potential customers will lead to even greater ideas. If you are creating software for a business then contact 25 businesses. Ask them if they would use it and how much they would pay. You may find out in both these cases that either people don’t want your product, or even if they do, they would not pay the amount you would need to create and profit from your idea.
Now that your idea is ready to launch, you will probably need some funding to get started. That will be the topic of my next article.
Nachum Kligman is a Serial Entrepreneur and speaker. He is the Founder of Qoof & Ideago –StartUp Lab, and the Co-founder of PeerBid.com, TeesAtRisk.com, KidsOutlet.com, and the now launched SportsFan.me amongst many other Internet startups. He is also a partner in Cellar 18, a new boutique wine store located in Ramat Bet Shemesh.
Branching Out: Welcome to Cellar 18
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So I have been working on the internet and the internet Start-Up world and have a lot of confidence in that area. Few people know that I also have some retail experience as I once owned a Pizza Shop in Meah Shearim about 18 years ago called Gamzoos, but that’s another story. I always look to diversify my portfolio and recently an opportunity came for me to join an all star team and be part of a new wine store in Ramat Bet Shemesh. So I joined Uri Schechterman, Saul Kaye & Gedalya Persky as a small partner is this store. It is very exciting and we just had our grand opening this past Thursday! It was a blast and we are bringing American style customer service and products to the store. Gedalya has years of experience and is a real wine connoisseur and is looking forward to getting to know our customers and make some great recommendations.
So please stop by! And for this week, come into the store and mention the word “Israepreneur” and you will get 10% of any specific bottle of wine!
Ideago, StartUp Lab for Anglos in Israel
Posted by: | CommentsToday I announced that I am leaving my executive position at Qoof (although I am still the Founder/Chairman). In the video below I explain why and announce that I am launching the first StartUp lab focused on the Anglo market in Israel.
You can check it out at www.ideago.com. Would love your thoughts!
The YikeBike: Someone should call them now and become the distributor here in Israel
Posted by: | CommentsWith the high cost of gas in Israel and the severe lack of parking, this product would be a hit in Israel and someone should contact them today and become the distributor here in Israel of this amazing electric bike.
What is the YikeBike? Below is from their website:
YikeBike is a statement about using smart technology to solve the problems of our increasingly congested, polluted, stressful cities. It is the first commercial expression of the mini-farthing concept, created up by a bunch of successful entrepreneurs, engineers and dreamers. We sat down to try and answer:
- What is the simplest way to get from A to B with the aid of a machine?
- What is the smallest wheel you can have to get a stable, safe, comfortable ride?
- Can you make something small enough to be able to go with you anywhere in a city?
- Wonder if we could make a unicycle dramatically easier to ride and fold?
We were intrigued by creating something that could dramatically change urban transport, enabling city dwellers a fast, safe and easy way to navigate their environment.
The result was the mini-farthing concept and its first expression, the YikeBike. It employs state-of-the-art technology, engineering and industrial design to create a new class of personal transport.
Watch this video below and then call the company and ask how you can distribute it here in Israel.
Need some extra cash to pay the bills? Why not sell the rights to name your baby?
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Ok, you are about to have your 7th child and your down on your luck and can use some extra cash. Why not auction of the right to name your baby on eBay?
Well that is exactly what one women from Arkansas has decided to do to help get her out of her economic nightmare.
YOU CAN READ THE STORY HERE ON FOX
YOU CAN SEE THE AUCTION HERE ON eBay
As of this post the auction still has almost 4 days to go, has 59 bids and is holding at $1325.00.
This reminds me a bit about when my son Yitzy was born two years ago and his Bris was going to be on the Shabbos in between Tanis Esther and Purim and so I sent a baby naming contest email out to the emsil lists as a pure Purim Joke and to announce the birth. I got a lot of responses. Everything from how can you do such a thing to people begging me to name the baby after a relative that died and has no one named after them. It was so successful that I did it again for my 5th child who was born on Tu’B'shvat. Both times I thought it was pretty funny and yet both times my wife didn’t seem to agree. Below is the email I sent out for my latest child who we named Emuna.
Dear Friends,
With tremendous Hodah and love to Hashem we are happy to announce the birth
of a baby girl this past Monday on Tu B’Shvat!
We will be naming the baby B”H this Shabbos morning at KSY and hosting a
kiddush at our home at Nachal Katlav 12/1 starting at about 10:30am. Please
come and say Mazal Tov!
Our last baby was almost 2 years ago a week before Purim and for those that
remembered we had a baby naming contest! This year you can vote for one of
the ones below and we will tally up the vote before Shabbos.
Let us know which you think is the best name!
- 2B or Tooby
- Ananas Mish Mish (my Mothers favorite)
- Tuti
- Tamar D’vash
- Buxerina
- Ilana
- Tzippy
- Orangina
- Rimony
- Raisinal
- Qoofy
Personally I think naming a child should be a very serious undertaking and while I would never sell the rights to name one of my kids, after reading this womans story I can see how it would make sense.
The Puzzle Model: Piecing together as a business model
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- Image via Wikipedia
Just read another great post by Seth Godin called “How to be a Packager“. In it Seth starts out by talking about putting a book together and being the one that manages the flow. Everything from putting the authors together to designing the cover to selling the book. Kind of like a wedding planner for books.
“A book packager is like a movie producer, but for books. You invent an idea, find the content and the authors, find the publisher and manage the process. Book packagers make almanacs, illustrated books, series books for kids and the goofy one-off books you find at the cash register. I did everything from a line of almanacs to a book on spot and stain removal. It was terrific fun, and in a good year, a fine business. Along the way, I worked with just about every major publisher and created more than a hundred books. I packaged (with various levels of success) video games, college professors, Julia Robert’s astrologer, an award-winning children’s novelist, the Weekly World News, Kinko’s and (almost) Craftsmen Tools.”
He then goes on to talk about using this model but for other ventures. The truth is this is not a new model and as I said on top it’s sort of like being a wedding planner. There are many industries and businesses that are built on being what Seth call a “Packager”.
Now while Seth is talking about taking perhaps existing products and or content and packaging them together, I would like to spend a couple of minutes talking about “Packages” that save time and the value they bring.
This is probably best noticed with consultants. Consultants have the experience and the knowledge to direct and guide you to the solution you are looking for. While it is possible to find the information on your own, a consultant can save you tens or even hundreds of hours. You just need to ask yourself how much is your time worth.
Another similar deal is a web design firm. Where as I am a big advocate of using FREE website designers, this is mostly for informational type of websites, easy E-commerce sites or for when you are just getting started. But if you are looking for a more advanced type of website, a web design firm will create a whole package for you including hosting, paypal integration, blog software, forms, design, etc.
The point is even though you can do something yourself with enough time, is it really something you should do? Again, it depends on how much you value your time.
Another thing to think about is how can you create a new business by saving time for people whose time is valuable. Think out of the box. The same with being a packager. What can you package together that will bring value and save time for those that need what ever it is your selling? There is plenty of opportunity out there and the article by Seth Godin is a good way to inspire you and get you started.
Ben Gurion Airport Arrivals hall is missing out on a tremendous opportunity
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Today, my cousin Yishai and his family made aliyah and I and a whole bunch of family went Ben Gurion Airport to welcome them home.
Don’t ask, but to make a long story short we waited almost two hours before they came out and there was absolutely nothing to do. Sure there is a very nice cafe and my Mom did buy me an ice coffee (thanks Mom!), but I wasn’t all that hungry. Now because I knew I would be waiting I brought with me a book so that was ok, but other then a few small stores (50% of them cell phone shops) there is nothing to do there.
But before we get to “things to do” they are missing out on a huge advertising opportunity. Thousands of people a day are waiting for people to come out through the doors and they are constantly looking at the huge boards with the times of arrival. But there is space on both sides for a super large screen that can be used for entertainment and advertising opportunities. They could show videos of user generated Israeli talent or even just videos of places to visit in Israel. Even national news would be good, but there is nothing. Granted there could not be any sound, but videos even without sound could be highly entertaining. Just ask Charlie Chan.
Now it also would make sense to have some sort of internet access or even computers there as well as a mini arcade or entertainment center. Something that you can do while your waiting for your loved ones to come out. Even some stores with rotating products would be welcomed and not the same old flowers books and balloons. Just my 2 agurot.
Business Idea – Mini Offices for on your mirpeset or in your Garden
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One thing people are always looking for is more room. Currently my home office is a converted machsan built into our apartment, but it is not always the most private and with 5 kids we could probably convert it into a nice guest room. But what to do? So I was surfing the net and I came across these two companies that have a great solution, but they do not operate in Israel. I believe it is a great opportunity for an entrepreneur here in Israel and would probably do very well with it.
Create mini-offices that can sit in your garden or on a large mirpeset (porch). Take a look at these links below and you will see what I mean.
http://www.gardenlodges.co.uk/
When you do open up this business ( and you may be able to cut a deal with one or both of these companies to ship the product and you can put it together here) please contact me as I may be your first client. Wife permitting of course!
The Israeli kid candy entrepreneurs are back in Ramat Bet Shemesh
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I am very impressed! A couple of weeks ago we highlighted on this blog a post about these two young brothers who were selling candy on Nachal Dolev in Ramat Bet Shemesh right outside my offices. You can see that post here. Well yesterday they were back! Or at least one of the brothers. The other was probably working another corner spreading distribution.
As you can see from this exclusive photo not only have they fixed there presentation by adding more candy and keeping them in a nice container as opposed to spread out on the stools, but the quality of the candy and the prices hasgone up as well. This time I bought 5 of the candy necklaces at 1nis a piece. This is pure entreprenurism at its best. They tested the market with a product without investing in huge inventory, they saw that there was a market need. So they reinvested the product in more and better stock and are now testing it in multiple locations (according to my theory of where the other brother is). If they keep this up, by the time he is Bar-Mitzva he will be the most successful candy company in Israel (or at least on Nachal Dolev)!
Business Idea: Launch K-cups of Israeli Coffee, perfect for in Israel and Over Seas
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One of the best buys I have made on my business trips to the states is the Keurig Coffee maker. I must say it was a great spend and works great here in Israel. I love making myself a fresh cup of coffee every morning and I never get tired of all the different flavors, types, and brands of K-Cups that work with this machine. In fact, 90% of the K-cups out there are Kosher! Even the flavored ones! But today, sadly, I find myself running out of stock and so I posted on a local email list asking if anyone knows where I can buy these k-cups in Israel. So the responses I got were all the same; "Don't know anywhere, but PLEASE let me know if you kind a place!".
So it seems that there is a need/want/desire for this product here in Israel which got me thinking of a new business opportunity for the coffee lover entrepreneur. Why not manufactur k-cups here in Israel? You can even become the sole distributor offering the machines for free with a monthly subscription to coffee! Not only that, but it has been said many times, and to be honest I find it to be true, that many Israeli coffee's are much better then StarBucks! So make a deal with Aroma, and other Coffe companies and cafe's in Israel and start selling! The best thing is that you can even sell them in the States as there are tens of thousands of Israeli's and Zionists who would love Israeli coffee! So please, go out and do it and make sure that I am your first customer!
