I thought I’d share how I came up with my various businesses - from idea to actual company. Hopefully, this will demonstrate some ways that businesses form.

My First Business

When I started my first business - Cybergrrl Internet Media (CGIM) - in 1995, I knew I didn’t want to work for others anymore and that I wanted to start a business. I also knew that my business would involve Internet communications because:

1. It was something I was passionately interested in and had been a hobby for me since 1987.

2. I knew more about the Internet and the Web than most people in 1995 so immediately identified a need - people needed me to show them the value of marketing online and having a Web site.

3. I could instantly make money teaching classes about the Internet and giving one-on-one Internet lessons to individuals. Web site building would happen eventually but there was a learning curve I had to help people over first.

4. I had a built-in marketing tool writing an Internet column for a local neighborhood newspaper - the first of its kind in New York City. In lieu of payment, I accepted a small ad for my business at the end of each column. That eventually led to a client who paid $10,000 for a Web site.

I started off my business by marketing my “services” to companies and organizations that I thought I’d like to work with - trying to convince them that they needed a Web site. I gave Web demos to everyone I knew until someone I had worked with at a previous job hired me to help develop an online presence for one of their clients.

My business morphed from “something using the Internet” to a full-service Internet consulting firm offering Web hosting, Web design, online content development, online community building and Web publishing. We ended up with over 20 paid employees, dozens of interns and a $300,000 venture capital investment from a media company (we should have taken more - but that’s another story).

My Second Business

I was talking to a friend over cocktails about wanting to start a business with her. We figured we could tap into my expertise with the Internet and her expertise with products and promotions. Based on our observations, we determined that an underserved market online was Hispanic women. So we started Eviva.net - an online marketplace and community for Latina businesswomen.

My friend put together a killer business plan, and we landed $250,000 in angel funding from a female venture capitalist. We interviewed prospective employees, designed a mockup of our site, landed a strategic partnership with Avon, and were off and running!

Then the market crashed and VCs ran away from anything Internet. So we admitted defeat, returned the money to our angel investor, and went out with a whimper.

My Third Business

For several years, I took a job with the State of Wyoming as marketing director for their economic development group. After two years traveling the state and noticing a dearth of Internet expertise in the region, I thought I should give it a go as an Internet consultant.

The moment I announced my departure from my state job, I had clients lining up. But I also had:

1. Strategic relationships with the SBA and SBDC to sponsor my teaching workshops throughout the state and introduce me to entrepreneurs.

2. Additional freelance writing jobs on the side to help supplement my income as I got my consulting off the ground.

I picked something I was good at, and I had relationships that I had cultivated over time that set me up for instant business.

My Fourth Business

After moving to Alaska with my husband - for his job - I looked around for a regular job to get a steady paycheck. But nobody would hire me. Finally, I was given a “sympathy” offer from a very prestigious nonprofit organization in the area at a fraction of my regular rate. And I took it because I was desperate.

After 3 months, however, I began meeting people and was offered a consulting gig at my usual rate. So instead of burning a bridge, I was honest with my employer and asked to renegotiate my deal with them. Now they are one of my best clients

So what is my business? It’s called Moonbow Productions, Inc., and I consider it a melting pot of everything I like to do. In a nutshell, it encompasses my freelance writing, multimedia producing and Internet and communications consulting.

Bottom Line?

What do my anecdotes say about starting a business from a business idea? The main points I am trying to make are:

1. Assess your strengths and expertise honestly. What do you know how to do and do well? Build your business around those strengths.

2. Line up connections before quitting your day job. Some people actually “moonlight” at their business before they leave their steady jobs. Do that carefully and with integrity (don’t steal your current employer’s clients, for example).

3. Surround yourself with smart people. Whether you are bringing people in as advisers, to partner with you on the business, or as employees or interns, make sure you find people who are good at the things you aren’t.

4. Do your homework. I didn’t just dive into a business without first testing out my ideas on friends, family, advisers, industry types - and doing some market research to test the viability of my idea.

5. Check your bank account. I did a careful assessment of my finances to know what I’d need to make in order to survive & how much I’d need to make to thrive. I had no savings in the bank but did have several credit cards on hand for emergencies.

6. Have a backup plan. What if you fail? Don’t burn bridges. Don’t close doors behind you. Keep all your options open just in case things don’t work out. People who “fail” at business are actually in a better place professionally than those who never try at all. The lessons you learn from failure are often more valuable than the ones you learn from success.
Next week, we’ll look at some nitty gritty tips on actually starting a business - going beyond that idea and making it happen!