You want your own business, maybe to be financially independent, be your own boss, work at your own time, and maybe, just maybe, retire as a multi-millionaire at the age of 35! But do you know what business you should start?
Selecting the right kind of business is a difficult process for any starting entrepreneur. Many dream of starting their own businesses, but remain frozen in status quo mainly because they do not know what business to engage in. Good ideas seem to be a dime-a-dozen, with newspapers filled with stories of how teens are reaching financial nirvana on very simple business concepts. Unfortunately, the next big business model perfectly eludes you!
Here are a few tips on selecting the home business most suited for you.
1. Instead of choosing the first business that comes to mind, take time to explore various options. Check out other business ideas! Read books providing ideas for possible home-based or small business, and trade magazine articles on trends and market demands. With the phenomenal growth of the Internet, information is now literally at the tip of your fingertips.
2. Find out what type of business appeals to you most. Read our Hard Knock’s Guide to Selecting a Business. Determine your goals, interests, wants and capabilities. You can turn your fascination for miniature shoes into a business; or your skill and expertise in designing graphics into a fledging business enterprise. The important thing is that you must enjoy your business. The most successful entrepreneurs feel passionate about what they are doing. You cannot feel passionate (and hence more driven) about your business if you do not like it!
3. Choose a business that will be personally satisfying as well as profitable. While you may have passion for your hobby or craft, always consider its business potentials. Do you think there is a demand for it? Will it bring you recurring income? How saturated is the market? Are there barriers to entry? Will you have economies of scale? Start a business that you think has a solid potential to be profitable. You will need to do a lot of pencil pushing and calculating to determine the financial viability of a business. This will entail analyzing your market and conducting a break-even analysis, a preliminary financial projection that shows you the amount of revenue you’ll need to bring in to cover your expenses. It may sound like a lot of hard work, particularly if you’re not a financial whiz, but this is one of the important steps in assessing whether the business you’ve selected can make you money.