More and more people are starting a business. It’s the idea of being their own boss that is really attractive to them. Plus, there is always that myth that you will get rich when you have your own business. Of course, no one gets rich by just starting a business. You have to start the right business for you to make money.
But what kind of business should you start? Now that is the question. Here are some ideas on how to come up with the right business venture.
How much capital can you invest?
If you don’t have much capital—just between $1,500 and $5,000— this might just be enough to start a home-based job. There are so many ways to earn a living while at home: professional consultancy, writing / editing jobs, various services, etc. These online jobs will require just your computer, the Internet and your skills. This brings us to the second point…
Find a business venture that you’re passionate about
There is no sense getting into a business that you are not passionate about. Doing so would mean a lot of learning. But if you choose something that you love, you will already have a lot of backgrounder about the business. The learning part will be more on the technical aspect.
Say you are into books. And as a bookworm, you love reading books while a cup of coffee is on hand. Personally, you like the smell of coffee and the pages of a book merging together. So you decide to open a coffee shop with books lying about so that people can have coffee while reading. Now you just need to learn about the technical side. How feasible is this business? Are there a lot of people like you who want to read books while drinking coffee? Or you could flip this around. You could open a book shop with a tiny café inside it. This way, when someone buys a book, he or she can devour it immediately with a cup of coffee on hand.
But just because you know and love the crux of the business, it doesn’t mean you know everything about it. So there should still be willingness to learn the ropes of a business—in general. But because you are passionate about it, you will soon realize that you actually love learning more about it. And the learning part becomes easier. You also need to have some of these traits to become a successful entrepreneur.
Find a business that is in-demand but under-provided
Try to think of things that you always want to be readily available but have a hard time getting. Sometimes you are at home and you realize that you need some eggs. So you have to run to the nearest grocery store. But don’t you think it’s too much of a hassle just for a dozen eggs? You drive to the store and park the car. You go inside and it’s a big store—and you just need a dozen eggs! But since you’re there, you realize you want this and that anyway. Not only are you making a lot of effort for a dozen eggs, you are also making a lot of unnecessary purchases. Isn’t there a drive-through for eggs and just other basic essentials? There’s an idea!
But an idea is one thing. Making it profitable is another. So while you have thought of an in-demand idea that is under-provided, you still have to delve into a numbers-based study. Are people going to patronize the product or service? Make sure you ask the question and make sure the answer to the question is yes.
Consider a franchise
Photo from dunkindonuts.com
Franchises usually mean the business is already established. This way, you don’t have to complete a feasibility study on the feasibility of the business since the answer is already yes. It would not have evolved into a franchising business if it weren’t selling, right?
The main idea for the feasibility study now is to figure our if the location or the venue for the business is worth it. Sometimes, the franchise will even provide this for you. In addition, franchises provide promotional materials.
The main disadvantage of the franchise is the cost. The investment will be higher compared to a startup. But of course, the stringent requirements and guidelines that the franchise imposes on you are already tried and tested, which means it will be easier for you to manage.
Test the waters
Before you take a dive into the pool, you must test the waters if it’s just the right temperature. Dip your toe into the water to check. But how do you do this in the business sense? If there is a business you are interested in, you might apply as an intern or do some sort of on-the-job training in a company that offers that particular business model. There are a lot of great business ideas out there, but actually doing them or implementing them is another story altogether. Be smart about your decisions to limit the adverse effects — especially on the financial aspect.
Now that you have some ideas on what you should consider when choosing a business model, it is also right to discuss the things you should not do.
Here are some of things you should avoid when trying to choose a business idea.
Insisting on an idea no one wants
A lot of unsuccessful business ventures happen because their business owners are passionate about an idea that no one really wants. While it is right to invest on something you love, you have to be smart about it. Study if there is a market for such idea. There is no sense insisting your passion to a market that doesn’t exist!
Reaching for the stars
This is exactly why you have to dip your toes into the water before diving in. You might have a great and grand idea about a business but doing it is impossible. So don’t start!
Choosing an idea that doesn’t stand out
Don’t jump into the bandwagon effect. Try to stand out and be noticed. This doesn’t mean choosing a unique product or service, you can choose the most common and mundane item in the grocery store—you just have to market it in a unique manner: enough to stir some curiosity.
