Business opportunity #1
January 17, 2010
As I go through the process of considering my next business (this has been a long process, I sold my last business nine years ago) I find myself thinking long and hard about what I want to do, what I can do and what will provide a return.
There are three businesses that I’m currently considering. The filter I’m using to assess all three is based on Jim Collins’ Hedgehog.
(1) What do I want to do (passion).
(2) What am I good at (skill).
(3) What can provide me with an adequate return (economic engine).
Essentially, he argues that great businesses only focus on those opportunities where passion, skill and ability to generate profits cross. I think the Hedgehog can be used for individuals too.
I’m going to post a three part series that run through an analysis of each of these opportunities framed using the Hedgehog (1 not at all, 3 totally). I’m not yet at a stage where I want to publicly broadcast details on these opportunities, but if you’re interested in learning more then send me a message. I’m more than happy to talk offline.
I describe my passions as deal making, leading, managing, motivating, team building, boating, jogging, biking, reading, politics, finance, BC’s southern Gulf Islands, business and Vancouver.
My passions as described by my personal board of directors: “big picture”, politics, drive my own vision (not someone else’s), control, client facing, see things work, instinct, not bigco, managing.
- Deal making: 1
- Leading: 3
- Managing: 3
- Motivating: 3
- Team building: 3
- Boating, jogging, biking, reading, politics, finance: 1
- BC’s Southern Gulf Islands: 1
- Business: 3
- Vancouver: 3
- Big picture: 3
- Drive my own vision: 3
- Control: 3
- Client facing: 2
- See things work: 2
- Instinct: 3
- Not bigco: 3
This opportunity would certainly provide me with an opportunity to once again lead and build a team, drive my own vision, follow my instinct (I think there’s an opportunity here) and make deals with suppliers. If successful it would provide me with time to pursue the “other” passions – boating etc.
As identified by my personal board of directors: people, strategy, advising, relationships, goal driven, process oriented, structured, execution, sales, presentation and verbal skills.
- People: 2
- Strategy: 3
- Advising: 1
- Relationships: 1
- Goal driven: 3
- Process oriented: 3
- Structured: 3
- Execution: 3
- Sales: 2
- Presentation/communication: 1
- Verbal: 1
(3) Economic engine.
This opportunity is an online store that is very focused on a single market niche. The market is large, the margins are good. If volume were achieved then the business would be very profitable. There is competition and I don’t see a “game changing” component. It would add convenience and provide an easy place for consumers to go for esoteric versions of the product.
Really profitable online opportunities are game changing. For example, Amazon changed the entire way we buy books and has become a great company. This opportunity doesn’t have that game changing component, so can it be really lucrative?
- Economic prospects: 2