Applied Research: The First Step in Starting a Business in an Unknown Field

Recently, I was asked what is the best process for starting a business in a field that one has little to no experience in? Now, logic would dictate why on earth would anyone want to start a business in a field they know little about, but the truth is, this happens all the time. The determining factor between success and failure of the business–in my opinion–is based solely on the extent in which the future entrepreneur is willing to understand the finer points of said field.

Example: When I started Vertigo Group, a business and technology consulting company, I had no formal education in computers or technology (however, being part of the technology generation, I had worked on a computer, and played with computers as a hobby my whole life). My education and background at that point was in aerospace, aviation, and business. Having started many businesses in the past, I knew that the only difference with starting a technology business is that I needed to gain some insider information. To put it another way, I needed to obtain a scouting report. How is this done? Simple, go to work for an organization in the similar field of interest. This way, one can obtain the ins and outs of how the organization is run, but more importantly, what works and what doesn’t. Equally important is that you now know your competitor and additional competitors in the field. This will also allow you to build your network.

This is preciously what I did before I started Vertigo Group. I went to work for a technology firm in Portland, Oregon, and was able to obtain the necessary knowledge over the course of a year to successfully launch my business. Not only did I learn the business aspects of how a technology consulting company is run, I was able to bring my technical skills up to speed by obtaining the certifications usually required to perform such work.

However, to me, the paramount aspect of my research was not to observe what worked, rather what didn’t work. I am more concerned with their failures than their successes. From a business perspective, I know how to run a successful operation, what I needed to know were the pitfalls associated with technology consulting. Moreover, this allowed me to tailor my business and pricing model differently than theirs, thus differentiating my business from theirs.

I’m interested in hearing your thoughts. Is this just good business practice and sound research, or is this likened to the sheep inviting the wolf in for dinner? Maybe, this is just the circle of business…

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