27 Across | Encouraging Entrepreneurs

Why is the first calculator from 27across an upside down calculator?

Because we’ve never seen a calculator like this.  Most business calculators on the web are all about break-even and profitability.  The calculators assume knowledge about expenses, about costs, about numbers of customers, about volume.

We’re starting from scratch.  We’re assuming that detailed knowledge about costs and number of customers is not yet in hand.

The upside down calculator is a tool to screen in and screen out.  The upside down calculator is a tool to guide thinking as to HOW.

Why spend a month or two or six investigating the details of a business that simply won’t earn “good” money?  Let’s use the ultimate screen as soon as possible.  The most important screen being:  Can we make some money?  HOW big does this business have to be to be a “good” business?

Did you know that it takes 40 ideas to find a good idea?  That’s one of those Execuspeak rules of thumb.  It doesn’t mean that most ideas are bad ideas.  It doesn’t mean that the first idea is a bad idea.  It does mean that it isn’t a good idea to glom onto the first idea.  It means that it is a good to think of lots of ideas on a specific topic in order to seek the best idea.

The way to screen in and screen out is to define, in advance, what makes a good idea.

Remember that we asked you to make a note in WHY about how much you want this business to earn?  Did you do that?  Take a minute and do it now.  WHY do you want to start this business?   Think about your motivation do start this business.  Somewhere in there is a dollar amount.  The amount is an amount that will satisfactory to you.  Be realistic, 27Across isn’t about fantasy, it’s about reality.   If it’s a side business then maybe it will be a smaller amount.  If it’s to replace a job then maybe it’s a larger amount.  If it’s about building a dynasty then maybe it’s an even larger amount.  The amount is yours and it will be your personal definition of “good.”

Now you can use the calculator to try on different business ideas, different product ideas, different service ideas… just like you would try on different pairs of jeans.  By learning enough to guestimate HOW MUCH it would cost to provide a product or service and learning enough to guestimate WHAT customers might pay, you can figure out how big the business would need to be to be big enough for you.

If there are multiple products or services, then try each on for size.  Don’t forget to add up the results.

Then the challenge of HOW will have meaning.  OR you can decide to try on another idea.