You are probably aware of the famous quote: “Aim for the moon. If you miss, you may hit a star”. I completely agree with this. There is no point aiming low because the best you can then expect is mediocrity.

There is a caveat to this assertion though! When dreaming big with your business ideas, your goals and aspirations have to also be grounded in reality. That is, you need to ensure that what you are aiming for is actually achievable and that you have the resources to achieve it.

Your brilliant invention might be something that you think is useful, but have you conducted research in the ‘real world’? Have you asked a range of people (or the niche market to whom it relates) whether the product or service really will change their life?

On one of the last episodes of Shark Tank, one of the pitches was for a hotel in a regional area where guests could check themselves in. It was aimed at business people, because as the owner of this business idea surmised, there is a lack of nice accommodation in regional areas, plus business people get tired of the time spent checking in and out when they travel regularly.

There were a few potential flaws that the ‘sharks’ pointed out to him. The first was that he had never run a hotel. The second was that the first hotel he proposed to build only had approximately eight rooms, so long queues were not going to be a factor. The third was that his margins were quite low, although fairly standard for the industry. Which meant that it would take a long time before he would see any profit and therefore no growth. In summary: he really had not done his research well, even though it was a nice idea and seemed to be meeting a need.

So don’t stop dreaming! But do make sure that you create a firm foundation for your dreams based on fact, not fantasy. Remember this quote from Colin Powell: “A dream doesn't become reality through magic; it takes sweat, determination and hard work.”

Michelle Grice writes a weekly column for business women in The Western Weekender

This week I watched the TV show Shark Tank, as I do every week to see how budding entrepreneurs succeed (or not) in presenting an attractive prospect for the panel of investors. I have been amused (and sometimes shocked) at the number of businesses that seem to lack understanding of the basics of business.

I have heard the ‘sharks’ say a number of times “know your numbers”. There are many who come to the presentation with a good grasp of profit, turnover and margin. But there have been too many who give approximate numbers, who don’t understand the financial questions asked of them or who have unrealistic projections on their turnover. Even if you never seek investors, knowing your numbers is essential for understanding how your business can grow.

In this week’s show, a business owner was asked if her business name was trademarked. Not only was it not trademarked, it was obvious by her reaction that she had no idea that this was essential, nor did she know if it was possible to trademark the name. In this case, possibly for a number of reasons, the business name was changed when the investor came on board. But this is an important reminder for everyone in business: registering your business name with ASIC does not protect you from anyone else using the same or similar name. It is imperative that you trademark it.

The final area that quite a number of businesses appearing on Shark Tank are lacking in, is research. It is one thing to have a great idea, but if you haven’t checked thoroughly for same or similar products and services, your ‘unique’ idea may not have quite the cachet you thought it did! Your research needs to include an analysis of who could easily ‘invade your space’. This doesn’t mean you should squash your idea if an issue is identified. But it does mean you need a contingency or a strategy to combat it.

Michelle Grice writes a weekly column for business women in The Western Weekender

Most women starting a new business are full of ideas (which is great) and passion (even better!). But it can be easy to get caught up in the ‘fantastic idea’ and make mistakes that can be easily avoided. So here are some tips for starting out:

Take time to test: you absolutely need to go with your ‘gut feeling’ when starting a business. But if you do not take the time to test and research, you are likely to fail (and fail quickly). Talk to experts and people who have been in business for more than five years. Work out who your target market is and see what they think of your idea. You might receive feedback that you did not anticipate and may find you have to do some more work before you launch. That does not mean you should give up! The product or service you launch may look different than what you first envisaged, so be open to change.

Market aggressively: you are competing with many other products and services, and advertising ‘noise’ in general, so you cannot expect that your idea will ‘sell itself’. No matter what it is, you have to create a comprehensive marketing plan. This does not necessarily mean spending a lot of money, but you do need to have a clear plan of what and how you are going to promote.

You cannot do it all: at the very beginning, you will likely be the one doing every aspect of your business. But if your idea takes off, you must bring in other people with specific talents and skills. Associate yourself with other business owners and start building valuable and trustworthy relationships so you can draw on those networks when you need to.

Michelle Grice writes a weekly column for business women in The Western Weekender

Most of us know that to succeed in business we need to find a niche. But often other factors take precedence. Many women start a business to work around family commitments, and so choose an industry that is conducive to that, rather than researching possible directions. But finding a niche is essential to long term success.

But how do we do that? What does ‘finding your niche’ look like?

Recently I had lunch at a new local restaurant. When I arrived at the restaurant it was immediately obvious to me that this business has found their niche. It was not that they are doing any one thing that makes them stand out from other restaurants. But they have worked hard to pull together a number of small, but meaningful aspects that combined, are establishing them as a memorable eatery.

What stood out to me was that the business owners have done their research. They have responded to what they know their local community enjoys. A key factor in their success seems to be the experience they provide for people: they have a great ambience, the food is upmarket yet not overpriced and staff are friendly and interested.

As you can see by this example, ‘finding your niche’ does not necessarily mean finding one unique product or service. Your niche can be a combination of tried and true factors. If you are still not sure how to find your niche, just start doing one area exceptionally well. Simply by doing that you will begin rising above all the other businesses who are content to keep doing what they’ve always done.

Michelle Grice writes a weekly column for business women in The Western Weekender

I am a visualiser. In order to prepare myself to undertake something new or unfamiliar, I visualise the steps and imagine the scenarios involved. However I recently discovered that sometimes visualising is not enough. Regular readers of this column may remember that I had registered for an open water swim in January (something I have never done before). A few days before the race, the waves were choppy, the swell was big and looking out at the water, I decided not to compete. Although the day of the race ended up being perfect conditions (and I felt some regret at not racing!), it ended up being a good decision. I realised that while I had visualised it fairly well, I learnt a great deal from just watching the race this year. I was able to see the course (instead of just imagining it), check out the other competitors and feel some of the energy and atmosphere of the race. Next year I will be so much more prepared. In business, while there are times when you do need to step into something new without knowing all the details, there are other times when more research and planning will provide a better outcome. You may be able to imagine some aspects and prepare yourself mentally, but some of the following strategies may also help: talk to someone who has done something similar; get some professional advice; undertake a ‘practice run’; test your product of service a couple more times. By all means motivate yourself in whatever way works for you. But make sure you do what you can to minimise your risk of failure.

Michelle Grice writes a weekly column for business women in The Western Weekender