Howdy all,

I have entered this young entrepreneur program that helps young guys like myself turn an idea into a business. I currently do the balloons but not technically as a business (though a do work a lot). Now they are asking us to create a presentation. We will be judged on how well written and versed it is as well as how much thought has been placed on the possible downsides of this venture.

Problem is, I really cant see a downside. This is really the most wonderful job in the world. I have no competition of any kind within 100 miles, huge profit margins, low start up costs, as well as a very flexible schedule. As i am young and scholarships pay my rent they dont expect to hear things like mortgages and debt.

So I ask you, those who have lived the life I so dearly desire, what are the pitfalls of this venture? What advice can you give me for this presentation? The winners reward is great and I do seek it but I would also enjoy a deeper understanding of the business side of this rather different business.


Thanks,
Dylan

Hi Dylan

Some downsides to consider....

Illness
Transport fails
Country comes to a stand still (remember last December)
You catch your hand in a door
Get a 3rd party claim & have no insurance
All your equipment gets stolen/lost
Your communication system fails (phone goes down/web site fails)
Your advertising goes wrong

Some may seen extreme but the exercise is to show you have looked at your weakness.

Hope it helps.

Do a SWOT analysis -look at Strength, Weakness, Opportunity and Threat

http://en.wikipedia.org/wiki/SWOT_analysis

Typr SWOT analysis in google and theres loads of examples

Subject of SWOT analysis: (define the subject of the analysis here)

strengths

Advantages of proposition?
Capabilities?
Competitive advantages?
USP's (unique selling points)?
Resources, Assets, People?
Experience, knowledge, data?
Financial reserves, likely returns?
Marketing - reach, distribution, awareness?
Innovative aspects?
Location and geographical?
Price, value, quality?
Accreditations, qualifications, certifications?
Processes, systems, IT, communications?
Cultural, attitudinal, behavioural?
Management cover, succession?

 weaknesses

Disadvantages of proposition?
Gaps in capabilities?
Lack of competitive strength?
Reputation, presence and reach?
Financials?
Own known vulnerabilities?
Timescales, deadlines and pressures?
Cashflow, start-up cash-drain?
Continuity, supply chain robustness?
Effects on core activities, distraction?
Reliability of data, plan predictability?
Morale, commitment, leadership?
Accreditations, etc?
Processes and systems, etc?
Management cover, succession?
 
opportunities

Market developments?
Competitors' vulnerabilities?
Industry or lifestyle trends?
Technology development and innovation?
Global influences?
New markets, vertical, horizontal?
Niche target markets?
Geographical, export, import?
Market need for new USP's?
Market response to tactics, e.g., surprise?
Major contracts, tenders?
Business and product development?
Information and research?
Partnerships, agencies, distribution?
Market volume demand trends?
Seasonal, weather, fashion influences?

 threats

Political effects?
Legislative effects?
Environmental effects?
IT developments?
Competitor intentions - various?
Market demand?
New technologies, services, ideas?
Vital contracts and partners?
Obstacles faced?
Insurmountable weaknesses?
Employment market?
Financial and credit pressures?
Economy - home, abroad?
Seasonality, weather effects?

At the moment you have no competition, what if that changes?

What would you do if Buster Balloon moved to your area? Or me?!

Ok so maybe there are no other balloon twisters but what other entertainment competes against you? Clowns, magicians etc

How can you keep upping your game and offering new stuff for your clients?

What happens when you are too busy? Do you train someone else up? Charge more?....

A SWOT analysis would really help you think, as in previous posts.

I hope this helps,
Danny  

Thank you so much everybody. I put all your suggestions to work in my presentation and that (along with a lot of dynamic movement a jokes) scored me first prize! An iPad 2 and $200 worth of accessories. I can not remember what happened on stage very well. Only bits and pieces. Also got to hand out a ton of business cards. Sitting pretty.


Thank you so much everyone,
Dylan

congratulations!    

Well done!!

Brilliant, well done