Sticking with what you know?

STICKING WITH WHAT YOU KNOW...MAYBE

A lot of business experts will tell you that if you want to start up your own business, that you should stick with what you know. That way, you will be able to perform well in your business. You will know your industry inside-out and you will have a leg up on the competition. This advice is great as long as it does not run up against the following problems:

-your current expertise or industry is in a funk and is experiencing industry-wide layoffs

-you are tired of your current occupation or career

-you probably were not very good at your career

-in order to set up shop, you would have to take out a loan for $10,000 or more

-in order to start up your business, it may take several years to set up and get going

-if you see a massive exodus of talent out of your occupation

-all signs of the current economy paint an ugly future for your industry.

Now let's take a specific example. Let's say you are currently an salesperson in a high end men's fashion store selling Armani, Gucci, Ferragamo, etc. And since sales have dropped sharply, you have been moved from full-time to part-time. To make matters worse, your manager tells you that unless things turn around soon, you will be let go.

In response to this pressure, you begin to consider opening up your own retail outlet of high-end men's fashion. Although with your store, you plan to cater to middle class customers who have limited disposable income. Alternatively, you are considering catering to high net worth individuals by offering house-call tailoring on the go. And you start thinking about this because you want to stick with what you know.

Now, I am not going to sit here and tell you whether this plan will work or not. The only thing I will tell you is that in this current economic climate, if your boss is hurting for customers, don't think that you will find the going that much easier. And I will also tell you that there are some industries or markets that are essentially radioactive.

Of course, that raises another question. How can an experienced sales person who has a lifetime of knowledge and wisdom regarding high-end men's fashion leverage his experience, knowledge, and know-how into a business? Well, instead of thinking along the lines of starting up a business in the exact same industry, perhaps you should look at the peripherals of your industry. Start with distribution. Is there a way you can leverage your skills in the distribution of men's clothing? Perhaps a drop-ship sort of thing where you can cut out middle men? What about starting up a magazine or an online review site? How about information products such as videos or ebooks on how to select the right clothes for the right industries?

Yes, the old adage of sticking with what you know is sound advice...most of the time. It's just that you have to widen your perspective a little for it to make sense.