Choosing the right business to start can be a difficult task for any aspiring entrepreneur. This decision is especially difficult given the limited time and resources available to sustain the business. It is also critical to make the right decision at this stage because it can affect the success or failure of the proposed business.
Here are a few pointers to help you decide which business to start and which one is best for you:
CONSIDER YOUR PASSION OR INTEREST: The fact that you have given this idea thought indicates that you have a strong attachment to it. Starting a business in something you are interested in or passionate about is always a good idea because a new business faces many challenges, and your passion or interest will keep you going when things get tough.
EXPERTISE IN YOUR INDUSTRY: Although basic knowledge about starting or running a business is important, it is especially important that you have some skills in the industry you intend to operate in. You should also research your competition to determine how viable running that business would be for you. Consider how you can contribute to the industry and how your unique ideas can influence the consumers in that industry. You can even take a course or get a degree in the industry to boost your credibility.
DEMAND FOR YOUR PROPOSED PRODUCT: It is critical that you research your company’s target market. Consider what problem your business concept intends to solve. Consider what your prospective customers would do in the absence of your product or service. Following that, research your competitors and determine why your potential customers are drawn to them. Consider whether your proposed business idea has enough demand to be profitable, as it will be more difficult to break into a market with more supply than demand.
IS YOUR BUSINESS CONCEPT SCALABLE? It is critical to consider whether your future business will be scalable. To do so, you must first ask yourself the following question:
Does your proposed business idea meet the current demand of your proposed customer?
Can you consistently change their products or services to meet the changing demands of your customers?
Will the concept meet the needs of customers as the company expands?
Does your idea need to be evaluated or adjusted on a regular basis?
If you answered “no” to these questions, your idea may be difficult to scale.
AVAILABILITY OF TIME AND RESOURCES: You must consider how much time and resources you will need to run the business successfully. Would you be able to run the company full-time? Is it a part-time (side hustle) job? If it’s a side hustle, what precautions do you plan to take to ensure it runs smoothly without your full attention? Before you make the decision to start the business, you must answer these questions honestly.
BUDGET: It is said that you must spend money to make money; this means that you must research and determine how much it will cost you to start the business and successfully run it until it becomes profitable. It’s critical at this point to honestly assess your financial situation and develop a funding strategy, including whether you’ll self-fund, take out a loan, reach out to investors, and so on. Before making the final decision to start the business, it is critical to have a funding plan in place.
REGULATED INDUSTRY: Consider whether the industry you want to work in is regulated or unregulated. If it is regulated, it is critical that you research the requirements to determine whether or not you will be able to comply before you begin, as you do not want to start the business only to have to stop abruptly due to the regulators in that industry’s requirements. For instance, it is almost impossible to start a school without possessing a degree that qualifies you to do so.
Lastly, please do some research to make sure that the business you want to start is legal in the country or state where you want to run it. It would be a shame to put in all of this work, time, and money only to find out that the business you want to start is illegal. For instance, in some countries, it’s a crime to manufacture, package or sell alcohol.
DISCLAIMER: Please note that this article is for general information purposes only. These articles do not and are not intended to constitute legal advice based on any information provided in this article. Please consult with your own legal counsel on your situation and specific legal questions you have. The information provided in this article is not privilege and does not create an attorney-client relationship with STARR ATTORNEYS or any of the firm’s attorneys, nor does the transmission of comment or an email create an attorney-client relationship.
