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TRUMP UNIVERSITY WEALTH BUILDING 101

Later, over coffee in a nearby restaurant, we projected the hourly, daily,
weekly, and annual sales of the bead shop. We “guesstimated” that sales for
that location exceeded $500,000 annually, and that profit margins before

expenses were about 50 percent; that is, every $100 of bead sales cost the
business $50 in labor and materials. The business was attractive from several
perspectives: repeat customers, nonperishable inventory, excellent location,

potential for growth through additional locations, and, finally, the fact that it
was a simple business to understand. Also, Maria felt that the business would
engage her artistic talents, and she liked the community of artistic people
who were attracted to the store.
Then the most exciting thing of all happened: Maria said, “If I owned
that shop, I would create a tight community of beading enthusiasts. They
could hang out in my shop and share their beading interests in a comfortable
social environment with coffee, tea, and snacks. I might call it The Beading
Café, and have guest speakers, craft shows, and a consignment store as well. It
would be the best beading shop in the area.” Maria’s creative juices were really
fl owing. She was thinking about how to add unique value for her customers.
Not bad for a two-hour walk!
This simple exercise presents an entrepreneurial model for how you can
search out and test a winning idea. Imagine a funnel. By walking around our

neighborhood, Maria filled the top of the funnel with 50 or more business
ideas, and then used her own judgment to screen out those that didn’t fi t her.

But fit alone is not enough; fit is only the starting point. Maria got her creative

juices going, and found her comfortable fit when she realized she could add
value. Maria’s idea will need to go through much more rigorous scrutiny using
the Opportunity Screening Checklist, included a little later in this chapter.

Ideas Can Come from Anywhere

An idea for a new venture can come from absolutely anywhere. My own
approach to idea generation is P roactive, E nergetic, and P urposeful—PEP.
When the weather is accommodating, I jog or ride my bike around my
extended neighborhood and keep my eyes open for real estate development
opportunities. At the very least, I have a pleasant experience. At the very
best, I spot an idea that may turn into a good business opportunity. Recently,

I identified two properties worth exploring this way. I also work with three
realtors who are always on the lookout for me.
To search for businesses for sale, I frequently check out brokerservice
network.com , and also attend stock investment meetings to learn about
high- potential, small public companies below the radar screen.

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