What Sort of Business to Start

[Dan Furman]

Originally Posted by orion_joel

I totally agree Bill, to compete on price is always a lose for us. However the problem that i find is that there are more and more people coming along that are willing to do more and more for less.

The reason it becomes such a problem is that i think the way that people go about it is all wrong. People come along getting started after someone has mentioned there is money in IT, they decide to sell there time cheap to get started, and of course gets them plenty of business, because they are cheap, but then when they try to raise prices they start losing customers so they go back and stick to their lower prices and the industry takes another hit.

The problem is also within how you present your service, though. If (for example, using Orion's industry here) a company is presenting itself no differently than the other IT firms out there, well, why NOT go for the lowest price?

I always try to take a different approach - I essentially try and make it so nobody can compete with me. I really don't sell copywriting - I sell MY writing. It's all over my website, and it's definitely in my demeanor. I'm slowly positioning myself as more of a brand than a copywriter. If you want MY writing, you have to hire ME. Nobody else will do.

Now, of course, some people won't see it that way - some will always say "thanks, but XXXX will do it for less". I'll never fully get rid of that, but I'm working on weeding that person out - I just keep tweaking the way I present myself, trying to make myself more of a brand than a commodity.

I admit this is easier for some businesses than it is others. Although I did know a local IT firm that started off with a (paid... generally $100) assessment of your needs - they would not do business with anyone without doing this service first. It turned off some people, but others really viewed it as a professional, reasoned approach, akin to "look, we're going to truly give you the service that fits YOU best" - they were pretty successful (I speak in the past tense because the owner eventually got made an offer he couldn't refuse from a large company). I thought that was a pretty neat idea.

[greenoak]

i think there is a deep desire for american made product..in the gift industry anyway.....
its an interesting question but really i would think a person with any chance of making a business would need to have some idea of their own ...

[orion_joel]

Ann, i agree almost whatever country that you are in there is a desire for buying locally made products. For Australia it is no different people like locally made products, however there is still controversy, between a locally made and owned product, to a locally made but overseas ownership.

Dan, i do totally see where you are coming from here, and agree if you just put out the same we fix computer's stuff as everyone else, then of course why not charge a low price. The problem stems from this being a very common approach and very many people seeing these types of things and then struggling to differentiate between them. Of course i understand it is then our job to show the difference, it is doing it in a way that is clear to everyone else that can cause a struggle.

[llcollins82]

I would say a service business, because i am becoming increasingly aware of people paying money to get other people to do stuff for them.

Or is that just me that some people are lazy?

[KristineS]

Originally Posted by llcollins82

I would say a service business, because i am becoming increasingly aware of people paying money to get other people to do stuff for them.

I think you're right, there is a rise in people paying others to do tasks for them. A lot of people are experiencing a lot more demands on their time. If they can eliminate tasks by paying someone else to do them, that makes sense. It comes down to the value of your time. If you're making enough money, it makes better sense to pay someone to clean the house or walk the dog than it does to do it yourself.

I know of at least one person who started an errand running business and did quite well. People were willing to pay for the convenience of having a responsible, reputable person run their errands.

[orion_joel]

I think that there is always a good market for services as you mention Kristine, as long as you pick the right area for your market. Also that it is sustainable in the area that you are in. Pretty much it really comes back to doing your research and knowing your market.

This doesn't mean that any business cannot be made to work wherever, however it does mean that knowing somethings before you start can make it a lot easier for you.