Turning an Old Idea Into a New Business

Modernizing the Wheel

Some business models only need to be slightly tweaked to appeal to the modern consumer. Want to update the traditional dentist office? Put it on wheels. While cleaning teeth is an industry almost as old as, well, teeth, putting an office in a van that can travel anywhere from giant corporate campuses to nursing homes is a much more recent concept. The rise of mobile dentist offices in the last few years shows that catering to people's busy and complicated lives is a nearly surefire way to improve upon an old concept.

Then there's the Pearson Ford Fuel Depot in San Diego, which has received a lot of attention for its one-of-a-kind gas station that offers a full range of clean-burning alternative fuels from ethanol to BioWillie, a type of biodiesel made from soybeans and promoted by singer Willie Nelson. Gas stations may be becoming synonymous with global warming, but by offering an alternative, this fueling station has managed to drum up publicity while serving an emerging niche market.

Capitalizing on consumers' nostalgia is yet another potential approach. In true throwback fashion, State Street Barbers, located in Chicago and Boston, gives modern hair cuts to men in an environment decked out to look like a ritzy salon in the 1920s. Patrons are given a cold beverage when they walk in and can get a hot lather shave with a classic straight razor and hot towels.

In the end, it's easier to be original and unique in an established industry like home selling or insurance when you have plenty of capital funding behind you; it's another story if you're running a fledgling start-up in your parents' basement, and you feel you have to take any client with a pulse and a wallet.

But whether you're a big fish in the ocean or a small one in the pond, the principles are always the same. If you're going to tweak a formula, "throw out the way things have been done before," advises Friedberg. "Figure out your end goal, and then forget about what all of the other people have done, and come up with a new way to do it."