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

Have you been watching ‘Shark Tank’ (the television show where budding entrepreneurs present their business to a panel of potential investors)? The first episode I found myself cringing and feeling terribly sorry for the business owners who were criticised or rejected. As a fellow business person, I know just how much of your heart and soul is contained in your business. So a rejection would have felt terrible.

But during the second episode, I noticed that my attitude had shifted. There were a few candidates who were clearly underprepared or failed to present an accurate (or realistic) financial overview of their business. The investors were clearly annoyed at some of those people, and rightly so. And I became much less sympathetic toward the candidates.

The people who have made it to this stage of the television have been provided with an amazing opportunity. Unfortunately, some just didn’t seem to understand enough about their business (or business principles in general) to present a strong case for why someone should invest with them.

We all need to make sure we have a better grasp on our business than the unsuccessful entrepreneurs! Most of us are not looking for investors or business partners, and may not even have to acquire a loan from a bank. This might lull us into thinking that we don’t need to answer questions (even if it’s just us asking them!) about our financial figures, our projected sales or our potential worth.

You can really only respond well to change and be innovative if you understand your current situation. Be very clear about where you are heading, where the potential growth areas are and how you are going to sustain and progress your business into the future. Revisit these areas regularly, share the overall vision with your team, and ensure that you always have a good grasp on where you are headed next.

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