So you want to start a business? At this point you are thinking about it or have completely made up your mind. Congratulations! Entrepreneurship can be one of the most rewarding experiences in a person’s life. You have joined the millions of people all around the world that dream of having their own business. So, you might be asking yourself: What type of business is not only right for me but one that I will have more possibilities of being successful at? There are hundreds of types of businesses that can be started and with the modern technology era that we are living in, the possibilities are endless.
All business ideas can be broken into two major categories:
* Product Sales - Selling tangible goods.
* Services - Selling professional services.
Now, the different types of businesses within these two main categories are very extensive, but deciding between these two would be the first step or maybe you can decide later once you tackle which business is right for you.
Factors to consider:
#1) Choose a business that you are passionate about and love doing. You will come upon articles or people that will indicate that this factor is not important, but believe me when I say it most definitely is! The average work week has 40 hours in it, we spend more time at our jobs than at home and any other place for that matter. That is a lot of time, but it’s minimal compared to the hours that you will invest in your own business. Have you ever worked full-time at a job that you didn’t like? Remember that happy feeling when Mr. Friday came around? That’s the feeling that you don’t want to have with your own business. Your business should be in an area where you truly feel that you have a calling, an area that you could be in 24 hours a day and you would still feel energetic, positive and happy. What happens when you choose a business that you will not enjoy? Simple, you will get to a point where you will feel miserable, miserable leads to getting tired, getting tired usually means you will give up. There is always a very slight possibility that you may be successful, but success in exchange for happiness, is it worth it? (Yes, there is a small number of people who will pick success over happiness any day, but I’m not one, and I’m sure you’re not one either ) Having both sounds much better!
#2) Assess your skills and experience. If you are going to be successful in a business, doing something that you are good at will definitely increase your chances of success! What are you good at? What has your experience been in the work world? Do you have great skills in a hobby or sport? Make a list of all of your skills and then narrow down your list to three skills that you master.
* A person who enjoys and has experience and knowledge in the human resources area, can start a consulting business for small businesses that are just starting to hire personnel.
* A person who has had a side hobby in the crafting area can start a business selling their crafts and creations.
* A person who enjoys and is passionate about playing video games, can start a business selling these.
*A person who enjoys planning parties for all of their family gatherings can start an event planning business.
Once you assess your skills you can integrate them into your search for a good business to start. Starting a business in an area that you have no experience or knowledge in, is an unnecessary risk. You must be able to deliver quality services and/or products for your business to be successful. Maybe you want to start your business in an entirely new area to you and you decide to take a course or training. This is fine if you have the time to put off the start of your business, but keep in mind, that in order for you to increase your possibilities of success you have to dominate and have knowledge in the area that you choose.
#3) How much money do you have? The amount of capital (money) that you have available to start your business is one of the most important factors. Do you have a significant amount of money available to invest? Are you starting out with a limited budget? Are you starting out with no money at all?
* Large Capital: Invest in a franchise or product business. Buying a franchise usually involves investing a large amount of money upfront, franchises can be for either products or services. Businesses that sell tangible goods usually have to start with a large capital, in order to invest in the products that they are going to sell.
* Small Capital: Service business, niche product business or handmade product business. Businesses that offer services require little investment because the main source of business depends more on the business owner’s skills (skills are acquired through experience and learning). A small business that sells a niche product can require a small investment, usually due to getting better wholesale prices for buying large quantities of the same product. A business that sells handmade goods may require a small investment as money is needed only for materials (not production) and the demand for products during the initial days of business might be low.
#4) Your Lifestyle: Integrate the type of lifestyle that you have and also the one that you are aiming towards. If you have children for example, choosing a business that ultimately allows you to have more time for them is an important factor. One of the main reasons why a home business is chosen by many women is the flexibility that this type of business offers in making time and also being available at home for their children. You can also ask yourself: Do you want your business to make enough money for you to have a comfortable life or do you want to be the next self-made millionaire? Do you want a business that works around a specific schedule or do you want a business with irregular and flexible hours?
#5) Do your research. Investigate important statistics and facts about the type of businesses that you are considering.
Some things to look out for are:
* Popularity and demand for the services or products
* Is the market too saturated
* Will you be able to offer something unique, compared to the businesses already established
* Do you have big competitors (such as established corporations and businesses)
* Will your customer base be local or worldwide
* Statistics on success of businesses or companies for the same type of business idea you have
#6) Online, Brick & Mortar or Both? The internet has opened the opportunity for an entirely different kind of business, the online business. Whether you want to sell tangible goods or services, you may want to consider opening an online store or service website. Are you more inclined towards having a brick & mortar business? Maybe you would rather have a physical location where your customers can buy your products or services. Or maybe you would like to do both. Compare the advantages and disadvantages between the two and decide which one or if both will complement your business idea better. (Smart tip: Even if you decide to go with a brick & mortar location, having a website for your business is always an advantage!)
CHOOSING THE RIGHT BUSINESS FOR YOU IS ONE OF THE MOST IMPORTANT DETAILS FOR STARTING A BUSINESS
Take the time to carefully think about the right business for you. Rushing into a business that you are not sure about can contribute to a business failure, which is something you definitely want to avoid. Many entrepreneurs grow tired and discouraged when they are working in a business that was not thought out or not right for them. Choose a business that will keep you motivated, has more chances of success and will always help you follow your dreams.
Share your thoughts…
Are you considering entrepreneurship? Do you have a list of business ideas that you would like to start? What do you think are important factors for choosing the right business for you? Leave us your thoughts below.