Decide What Business to Start Using These Factors

When thinking about what business to start you need to consider the following factors. Choosing the kind of area to go into is key if you want to get past those initial hurdles and be a success.

Make Your Business Around Something That Interests You

You don't need to be in love with what you are selling but it is a good idea to enjoy at least some parts of it. This is particularly useful as it helps you get through the inevitable low points.

You are going to need a lot of motivation to get things off the ground and liking your chosen market will give you the boost you need.

Ask yourself what your skills are. If you have no idea then try this exercise:

• Take a piece of paper and divide it into about 20 squares with a pencil.
• Quickly brainstorm things you like or are interested in and write them in the boxes.
• Don't think too much, just write down the first things that come to mind.

This will give you plenty of ideas to work with.

What Business to Start? Focus on a Niche Market

Whatever product or service you decide on, try to focus your marketing efforts on a small well-defined market sector. This will make it much easier for you to understand the people you are selling to and what it is that they want.

If you try to focus on huge markets and try to sell products that are “for everyone” you will be facing competition from big companies. You can do without this in the early stages. You don't need to have a unique product but you need to know who wants to buy it.

Take an example of a small business that manufactures home-made soap. Soap in itself is not new and everyone needs it. Massive established companies manufacture and sell soap. But you could focus your marketing efforts on single woman aged 20-30 or families with children aged 4-10. Later on you can expand but in the beginning you can directly appeal to your customers by showing them you know exactly who they are.

Do Something Which Is Scalable

This is important after you have got your business off the ground. At least it is if you want to expand. You may be happy to get to a certain level of income and enjoy the independence that running your own business offers and that is okay. But there are only so many hours in the day and you only have one pair of hands etc. so you need to think about leverage as you consider what business to start.

This means duplicating things for a lower cost. This is not limited to making products but can also cover management systems, marketing and manpower.

Every business has some aspects that can be outsourced. But the core product or service can be harder to replicate on a cheaper basis.

If you want to start a cleaning business you can invest in equipment, hire staff and outsource your marketing.

If you want to provide a tutoring service it is more difficult to duplicate as you are essentially the product. When you take on other tutors you have to put a lot of faith in them as they will be presenting you in your place.

Do Not Open a Business With No Experience

As a final point do not jump into something as it looks fun or that you think it looks easy to make money from. Most people who do this fail, end up owing a lot of money and then give up on their dreams.

A prime example would be restaurants and bars. We all enjoy eating and a lot of us enjoy a drink too, but this doesn't make us prime candidates for opening a restaurant or a bar.

Brainstorm some ideas and run them through the above factors. They will give you an ideas of what business to start and where it is likely to end up.

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