There are always three crucial up-front decisions for anyone who starts a small business. The first is whether to take the plunge at all. If you’re going to take the leap and start your own business, it’s going to take a lot of energy, time, and money. The best way to keep yourself motivated through the ups and downs is to do what really matters to you.
Buying the first affordable business that comes available just because you want to become an entrepreneur.
But the second decision may well be the toughest: Just exactly what business, or what kind of company, am I going to start, anyway? Once you’ve decided that the entrepreneurial life is for you, how do you choose the right business? What specific industry — or even what niche — appeals to you or would make the best use of your abilities, aptitudes and assets. We show you how to sort it all out.
The last is how to proceed on your new venture in terms of basics such as finances and lifestyle.
Here are the six important steps for choosing the right business;
Follow your passion
The best option is always to make or sell a product or service that you know about and love. If you’re looking for someplace to score a short-term hit just for the sake of reaping a financial gain, that’s fine – get in; make your money; and get out. But if you’re looking to start a business for the long haul that suits your temperament, your strengths and the lifestyle you want, you must choose a business that you love.
The advantages of following your passion are many. For one thing, if you truly believe in what you’re marketing or selling, you’ll stand a much better chance of making a sale. And when tough times come – and they will – you’ll be much more likely to fight through them.
While starting a business with your individual interests and expertise in mind is crucial, so is the necessity of making sure that this enterprise represents a concrete entrepreneurial opportunity.
Take a bloodless look at the relevant marketplace. Is it trending toward a real need or even a collective desire for the business that you want to start? Better yet, is America or the world screaming for someone to do this? Make sure your product or service not only addresses this opportunity but does so in the best way.
But if you find that some other business already has occupied your chosen space, don’t necessarily let it scare you away. Actually, existing competitors can be good indicators of a business opportunity that makes sense. If others already are doing well at it, that could be a good sign for you. Learn from them. And then, most important of all, differentiate yourself from them in the product or service itself, or perhaps your geographic market.
Make a lifestyle choice
If you love the kinds of activities your business would call upon you to perform but it would require 24×7 commitment from now as far as you can see into the future, you may want to think twice. Don’t let that Life Plan get put on hold for a business plan. Your dream business could quickly become a nightmare.
At the same time, make sure you choose a business that fits the kind of life you lead, or would like to lead. If you enjoy being solitary, select something that allows you to work at home. If you enjoy community activities and interacting with stranger, a retail operation of some sort might be for you.
Be aware of your risk profile
Your tolerance for adventure in a new livelihood is an important component in choosing a business. If you create a truly revolutionary concept, the upside of your business could be tremendous – but with the potential for success, the risk involved goes way up as well. There are usually fewer variables and risks involved in replicating a business idea that’s already in the marketplace and just needs a little tweaking for differentiation.
Respect the Internet
Figure out how you can put this game-changing resource to work for you. It can help you start a small business for less money and faster than ever before. Just remember that while there’s little infrastructure and no bricks and mortar required to launch an online business, there are other basics you must know or be able to learn – such as search optimization for your site.
Also keep in mind that the Internet can cut both ways. While opportunities seem exciting and enticing and perhaps even limitless, potential competitors are seeing that same picture in greater numbers than ever before. That means you will have the fundamental marketing challenges that any business has, no matter which business you choose.
Using your skills and passions to find a startup business can be a great way to build a business that you love.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.