Should I Start a Business? from Planck's Constant

Rajiv is one my favorite visitors from India. After reading my article So You want to be your Own Boss he asked this question:

What about entering the software business. I have been in the Software Marketing for nearly 5 years and know quite a few clients.
Should I enter in the 'business' ? If yes how?

Rajiv, let me say that although having expertise and contacts is important in business, those are only important after starting the business. First you have to figure out what you can do to solve a problem. Saying that you have been in software marketing for x number of years is not a reason to start a business.

People do not buy software, they buy a solution to their problem. If you can supply solutions to people's problems, then you have a viable business.

Coke Side of Life
Photo Credit: Designflavr

For example, some people mistakenly believe that the Coca Cola company is in the business of selling beverages, it is not. There have been thousands of beverage companies that have sold a better tasting beverage for less money but they are mostly gone. That is because they were trying to compete by providing a soft drink. Coca Cola is the largest beverage company because it sells a solution to a problem; and that problem is not thirst - Coca Cola in real life sells inspiration and good feeling. Here is what Coke on its website says is its real business:

Coca-Cola, Brands - Well-being - News
Coca-Cola has continued to bring people together by inspiring moments of optimism and uplift, and providing an antidote to the negative forces of the day.
While Coca-Cola has grown tremendously over the past 124 years, the brand's promise has remained the same -- to inspire moments of optimism and uplift.

Do you hear anything about soda or how good it tastes? No. That's because Coke does not sell soda.

But back to software.

I have been looking for months for a company to design an e-commerce website I have in mind. I have been given quotes as high as $20,000 and a six-month timeline. But I have not hired a single one because none have offered a solution to my problem. My problem? I do not believe they can design the site according to my specifications. All they talk about is what they have done for others. I don't care what they have done for others. I need them to convince me that they can do what I need. I need to be sold confidence and they keep trying to sell me their experience.

Rajiv, you need to figure out what solutions you can sell and if these are things that people need to buy from you rather than from a thousand others.

So I ask you Rajiv, from your dealings with people what do you think most of them are really looking for?

Find that out and then maybe you can start looking for a solution. Find a solution and you have a business.