The first five percent

If success is five percent inspiration and ninety five perspiration, then deciding what type of business you’re going to start is the inspiration. Putting in the long nights to get it off the ground and keep it running is the perspiration.

I’ve had numerous people see my wallets and say “I could never come up with an idea like that” as an excuse for not starting a business. So how do you decide what type of business you want to start? I’d begin with my dreams. What do I want to create that the world needs? Is there some type of work I’ve always wanted to do? Maybe opening a neighborhood bicycle shop. Or book store. Working as a professional photographer. Starting a business doesn’t usually require a new idea. Often a creative twist on an old one is plenty. Or simply take an existing idea and bring it to a new location.

Another route may be partnering with someone who has a great business idea but lacks the motivation or time. Alternatively maybe you have an older friend who's already running his own business. My landlord in Nashville ran his own mortgage company and took on a young assistant a few years back, which allowed him to work less and spend more time with his family. In a couple years, when my landlord retires, his assistant will take over. Not only will he receive passive income during retirement, but the company he built will continue to operate as his legacy. Either partnering with someone else to start a business or helping them transition out of it lets you work with their idea while benefiting both of you.

One of my friends wants to open a restaurant that serves the dishes he grew up eating in the South Pacific. Since he doesn’t have any experience in the restaurant business, he’s considering opening a franchise of an already successful cafe. Franchising can be a great way to be your own boss and it requires less upfront knowledge or risk. Basically you’re working with an already established brand, like Subway or 7-Eleven, that has a vested interest in you being successful. You’ll owe an initial franchise fee of $10K to $100K and have to pay 2 to 10 percent of your revenues as royalties, but they will train you and help you negotiate deals with suppliers that you couldn't as a startup. And even though restaurants are the most popular franchises, you can work in almost any industry you want, from cars to computers to fitness. Entrepreneur.com lists the top 500 franchises and has lots of other information if you’re interested in going this route. Or simply search for “franchise opportunities” and you’ll find plenty of sites.

Another option is to buy an existing business. They're often listed in your local classifieds and you’ll already have a customer base. Plus you can see how the financials look before getting started, so you have some idea what it will cost to run and how much money you can expect to make. The drawbacks are that if the company is doing well, you'll need a lot of money upfront to buy it and even though you can obviously change whatever you want after buying the business, you'll probably be somewhat limited. It’s like buying a house and remodeling it versus building your dream home exactly to your own specs.

I want to caution you about two potential pitfalls in choosing a business idea. The first is being so focused on the first opportunity that comes along that you rush into it. In a sense, starting a business is like getting married. You wouldn’t marry the first girl you meet without at least looking around, and you should treat a business idea the same way. You’re going to be spending a lot of time on this company (ninety five percent of the work still lies ahead) so make sure you’re going to enjoy and be proud of what you’re creating. Choosing carefully will help you persevere when things get tough and you’re thinking about divorce.

The other danger is waiting for the perfect time to start your business. This is like having kids. There’s always a reason to wait a little longer, and pretty soon your window of opportunity has passed. A friend has been wanting to start a Thai restaurant for years. She’s a great cook and would make a wonderful host, but everyone tells her to wait until she has more money, or wait until her kids are older, so she keeps postponing her dream.

Coming up with an idea is the fun part. Enjoy talking about it with friends, planning how you’ll lay everything out, imagining being your own boss. Let your imagination wander during this stage, but get ready to start working, because trust me, it’s going to take a lot of hard work to marry this kid.

(that last part didn't come out quite right)