Turning an Old Idea Into a New Business

The site is completely customizable and automated. A farmer, for instance, could receive money every time the temperature dips below 67 degrees in a particular month. Or if a ski resort has a week and a half of beautiful, balmy weather in January, the owner could automatically receive a check without having to report the weather.

"There is no claims process," Friedberg says proudly. Instead his company uses a third-party weather station, EarthStat, that independently confirms data and sends daily reports to WeatherBill, which then processes the checks and sends them out.

Narrowing Your Focus

Despite such success stories, there are risks to developing a new business within an old framework, says Lenann Gardner, an internationally known sales consultant and author of the new book, Got Sales? The Complete Guide to Today's Proven Methods for Selling Services. "You have to get people to change their behavior to support this new corporate strategy, and that's a difficult thing to do. In fact, it's one of the hardest things to do, to change human behavior," says Gardner.

Narrowing your business' focus is one way to attract customers to your new take on an old concept. "Nobody wants to do business with a business that tries to be something for everybody," asserts Gardner. Granted, tell Wal-Mart that, but she's right. Stores known for having a little bit of everything thrive because the stakes aren't too high for customers shopping for soap, cat food or a lawn chair. But as a general rule, the more someone is spending on an item, the more likely they are to seek out a specialized business.

Take buying a house, for example. Garry Aloia is an owner and managing partner of My First Home, a business that caters specifically to first-time homebuyers. Aloia, who also co-owns parent company New State Mortgage, came up with the idea when he realized that because agents are driven by commissions, "human nature takes over. If there's a bigger commission involved, that customer gets more attention," he says. First-time home buyers -- who make up about 40% of the home-buying market -- are often purchasing smaller residences and are likely getting less attention, reasons Aloia.

To remedy the situation, Aloia's My First Home, based in Merrilville, Indiana, near Indianapolis, employs real estate agents who are paid higher salaries -- 25% more than the average agent -- but who don't receive commissions.

Aloia doesn't see his business as a traditional real estate office, but rather as a home-buying educational and assistance center. The office is even set up to look like a home, complete with a fireplace and coffee. The company offers seminars to first-home buyers, as well as advice and tools to help them figure out what their monthly budget should be after they move in.

What Aloia's business is doing is what all entrepreneurs, whether veteran or novice, ultimately should be doing. "I try to put my feet in the shoes of the customer," says Aloia. "I ask myself, 'How can I make their life better and simpler?'"