| Utah's Wasatch Front is undergoing dynamic business | | | | the world wild west. You put up a web site, do some |
| growth, and you can take advantage of that growth | | | | promotion and fill orders. But, my, how times have |
| now. People are moving into the area in record | | | | changed. If you go it alone today, chances are you'll |
| numbers. According to the Governor's Office of | | | | spend more money on click-through fees than you'll |
| Economic Development, 2006 was the first year | | | | pay yourself! |
| since 1945 in which Utah had more in-migration than | | | | The sales model for the web is now one of working |
| births. | | | | through the "big guns" who have established |
| People are coming to Utah for many reasons: quality | | | | themselves as shopping portals: MSN Shopping, |
| of life, recreation, cost of living, health and medical | | | | Froogle, Amazon, Buy.com, etc. This may initially look |
| facilities to name a few. But mostly, they move here | | | | like trouble for the small businessman with a great |
| for jobs. More specifically, businesses are seeing | | | | new product, but it is actually a huge opportunity. |
| opportunity here, and they are hiring and bringing in | | | | Even most large consumer goods companies, who |
| people to fill and grow those businesses. According to | | | | have their own established and successful web sites, |
| Global Insight, a well-regarded statistical and economic | | | | sell through these other channels of distribution. |
| forecasting company, our 2.7% unemployment rate is | | | | Here is your assignment for this afternoon: take your |
| among the lowest in the nation and just off the | | | | new and existing products and partner with the |
| lowest ever recorded in Utah. The Bureau of Labor | | | | portals. Each has a "new product submission" link on |
| Statistics tell us that our annual employment growth | | | | their web site. They heavily advertise, bring in the |
| rate of 4.5% for each the last six months is more | | | | customers, take a small cut and you have zero |
| than triple the national average. This growth means | | | | click-thru fees. Several years ago, I quit my own |
| there are tremendous opportunities for new business | | | | advertising (giving myself a $60,000 raise in the |
| ideas to take hold. | | | | process) and sold more than I ever could on my |
| It has historically been accepted that many trends in | | | | own. |
| the United States start in California and Florida, | | | | 4. Combined distribution/fulfillment warehouse |
| Massachusetts or Texas. Why is that? | | | | There are thousands of manufacturers in China, India, |
| I believe because that is where the population | | | | Indonesia and other Asian countries who are dying |
| growth has occurred: with more people come more | | | | for a way to get into the U.S. market. The standard |
| businesses and with more businesses come more | | | | business model is for an American company to buy |
| competition. With more competition comes a greater | | | | their products, import and warehouse them, |
| need to innovate to survive, as well as to distinguish | | | | advertise and then fulfill orders. |
| your business from your competitors. This leads to | | | | I see an opportunity for one common centrally |
| more narrow market niches, and more specialization | | | | located U.S. warehouse, filled with goods from |
| in business. For example, when a print shop's market | | | | perhaps 50-100 manufacturers, located in a duty-free |
| is saturated with competitors, the owner has to look | | | | zone, taking goods on consignment and spending |
| for other related niche businesses just to survive. | | | | their money on marketing the products. This is not |
| What begins as a search for survival ends up as a | | | | too different from the successful model of partnering |
| growth opportunity for the business owner as well as | | | | with local businesses that warehouse their own |
| for new competitors. | | | | goods, sell through Overstock and ship from their |
| Utah is now in that place. | | | | own warehouse. In fact, it could be a "next step" for |
| The key to developing a new business idea is being | | | | Overstock's consumer products business. |
| able to identify market trends and activities. Large | | | | Fulfillment warehouses could further be specialized, as |
| organizations hire staff and outside consultants to | | | | in plumbing supplies, construction materials, and even |
| help them do that research on an ongoing basis. | | | | seasonal products. When established, they could sell |
| Smaller companies operate on the owners' gut | | | | through the Amazons and Overstocks of the world. |
| feelings. Either way, companies can be successful in | | | | 5. Industrial supply virtual malls |
| shaping their own futures. One of the best strategies | | | | Along the lines of the fulfillment warehouses, industrial |
| is to identify benchmarks: competitors' actions, | | | | supply "virtual malls" can be developed. Many industrial |
| economic events, and societal trends. | | | | businesses are located in industrial parks and each has |
| Twenty years ago, a business magazine asked me to | | | | their own ordering system and delivery fleet. Why |
| name some new business ideas. Here's the list I | | | | not green things up and save money by combining |
| provided then: children's furniture manufacturing, | | | | delivery services? Additional ideas here would be the |
| downtown computer store, laser printer/bindery | | | | availability of one common one e-catalog and |
| services, auto mall, lunch catering to businesses, an | | | | combined promotion. This is another example of |
| organization specialist and a drive-thru (no seating) | | | | companies working together, combining |
| burger joint. The children's furniture business is still a | | | | non-competitive talents. |
| viable opportunity, we now have several downtown | | | | How do you actually do it? Look around; think about |
| computer stores, the laser printing business has | | | | it, and a need will present itself. Go with your gut. |
| undergone several iterations and is now known as | | | | Begin by checking out the Governor's Office of |
| Kinko's or AlphaGraphics, cities have zoned for auto | | | | Economic Development at goed.utah.gov. This is a |
| malls all over the country, several local restaurants | | | | powerhouse organization staffed with very talented |
| now deliver lunches to businesses, the organization | | | | people whose sole mission is to grow your business. |
| specialist businesses are known as California Closets | | | | Your local banker has connections to GOED and |
| and Hold Everything, and the drive-thru burger joint is | | | | other resources, and will get you in touch with the |
| Checkers. | | | | right people, at no charge. The Salt Lake Community |
| So what do we do now? In thinking of opportunities | | | | College (slcc.edu) has a well-established program to |
| it is important to remember two things. First, if you | | | | start and grow your business, including courses, |
| have a need for some service or product, chances | | | | seminars and training events. Plug into each (not just |
| are so do a lot of other people; and second, there is | | | | one) of these and you will be on your way. All you |
| always room for a specialized niche (i.e., a new | | | | have to do is ask. |
| competitor) in any existing business. | | | | 6. Real Estate "Teams" Training |
| With that in mind, here's a short list of specialized | | | | If you are a real estate agent, you have certainly |
| business opportunities that I urge you to consider. | | | | heard of the Mike Ferry Organization and Floyd |
| Most can be established anywhere in the U.S.A. | | | | Wickam's Sweathog program. These are the two |
| 1. U.S. Retro Products to Asia | | | | best known of many professional training programs, |
| Over a 10-year period I sold and sourced products in | | | | aimed at individual agents. They are both highly |
| Japan, China and Singapore, and made over 20 trips | | | | effective and are used by successful real estate |
| to Asia. The 70's are in. So are the 60's. As China | | | | agents nationwide. Many other similar programs exist. |
| becomes more affluent, as Japan has been for many | | | | But I have not been able to find a well-advertised |
| years, many consumers are after "cool" U.S. products | | | | training program focused solely on real estate teams. |
| from the 60's and 70's. | | | | This could be a huge opportunity for someone to |
| Why not visit some garage sales and used furniture | | | | develop. It could easily be a nationwide program. Are |
| and collectible stores in the area, buy some | | | | you a team leader or office broker? Have you been |
| cool-looking period items, and put them up on | | | | on a real estate team? Do you want to make even |
| eBay-equivalents Japan or China? I think you'll find big | | | | more money with a training/coaching program |
| demand for space-age ashtrays, clocks, small | | | | designed exclusively for teams? I suspect you'll have |
| furniture items and the like. Shipping is easy: just | | | | a good reception. |
| weigh the packaged product and find the USPS and | | | | 7. Wasatch Front Topo Hiking Maps |
| DHL or FedEx prices. If you question if the demand is | | | | While it is true that many things are going electronic |
| there, just visit one of our local used furniture stores | | | | these days, maps don't seem to be making the |
| that specialize in that era and sells locally. You say | | | | transition well. You can buy the ($49.95 per year) |
| you already own one of those stores? Hmmm. | | | | online maps, the Topo! and National Geographic area |
| 2. Craigslist 4 Dummies | | | | maps, as well as Wasatch Front Panoramic Hiking |
| Starting in a bedroom in San Francisco, Craig | | | | Maps and Wasatch Front Touring Maps, but even |
| Newmark wanted a simple way for people to let | | | | with these offerings, I think there is still opportunity |
| others know about cool events around San Francisco. | | | | for one more. The twist? Readability. |
| It started as a list server where people could view | | | | Your map will have 3D color-coded topo features, |
| others' postings. He named it Craigslist and it has | | | | ground cover shadings, trails, UTMs, reference points, |
| grown to be the major international jobs, dating, | | | | etc. Take a look at the Tom Harrison series of maps |
| advertising, and general posting site. He takes | | | | (available at most map stores), and duplicate those |
| advertising only for job postings. Everything else is | | | | for the Wasatch Front. He does not yet have the |
| free. The site is arranged by locale, and within each | | | | Wasatch Front covered. Another map in that style is |
| city into categories such as For Sale, Services, | | | | the "Rambler's Guide to Mt. Tamalpais" by Fred |
| Personals, etc. It is quite extensive and very active | | | | Olmstead. Both are available on Amazon, eBay and |
| with millions of monthly visitors. | | | | other places. You'll see the difference. |
| The "Dummies" series of books is a great success. | | | | As an aside, the elevation changes on each of the |
| Here's how they work: You bring your idea of a | | | | existing maps vary: some seem to measure absolute |
| Dummies book to them, and they help with the | | | | gains (not taking en route changes into account); |
| publishing and distribution. Check out Topics now | | | | some apparently provide the cumulative gain, and |
| cover everything from Skype to Infertility. | | | | most all show different gains on many identical trails. |
| To date, there is not a Craigslist 4 Dummies. Do it. | | | | On your map, the ATM way points will show the |
| This is a huge opportunity. | | | | elevation. |
| 3. Sell on the web without advertising | | | | I hope that's enough to get some people thinking. |
| There was a time when the world wide web was like | | | | Any takers? |