Building a business from the ground up is a challenge in and of itself. It requires a demand for a product or service and, except for possibly the tech sector, these smaller start-ups target niche consumer segments, which are often localized, i.e., where the entrepreneur resides. How does one take that fledgling idea and see if it can resonate internationally?
First, check its relevance and reach. Is there a need for this in Shangai, Munich, and (/or) Johannesburg? If not, what would? Does the business need to then be refined or expanded? So, do lots of people do it? Or just some, but you know who those people are?
Next, are you involved in the community. I’ve known people who have created small apparel brands, were very involved in the community of their target market, but had never been exposed to the apparel industry before, so things like process and pricing were completely foreign to them. They might be able to build product that has a demand, but without enough research, there will most likely be significant associated costs, and the learning curve is steep. So, know your market and know your business.
Does it have longevity? Is it the current equiviland of the 8-track, or is it the running shoe? Is it recession proof, or will people only purchase when things are good? In the sports industry, it was argued that even if the economy was tanking, runners would keep running, basketball players would keep balling, etc. It was a mental release for them, an escape, particularly to deal with stress that could come with a poor economy. And when things were going well, they would buy more running shoes!
Are there global institutions also focused around what they are doing? Are others in the world working towards similar goals?
Answers to these questions will provide some next steps in strategy and business plan formulation.
Stay tuned for parts II and III, coming out over the next week.
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