Initially, starting a business is a mystery: you want to start a business, but you don’t know what business to start. Plus, you’re clueless about the first steps you should take. What do you want, and how will you take action?
Here are some ideas on how to narrow down the type of business you wish to start.
Assessments: Consumer Needs and Strengths
First, determine what your community needs. If specialty cupcakes and desserts are growing in demand, consider opening a bakery. If your neighbors need a better waste management program, start a garbage bin rental and junk removal business.
Second, assess your strengths. Chances are, your potential business idea revolves around your passions. For example, if you love to take photos, consider becoming a photographer for a magazine or a business. If you enjoy writing, start a blog or a writing business. Regardless of what your talent is, list down your passions and strengths and jot down at least three ideas of possible companies you’d like to start.
Check Your Start-Up Funds
Your budget need not block you from your entrepreneurial plans since some businesses are inexpensive to start. For example, creating a blog or your YouTube account might cost you a few dollars at first. Starting your café, however, might require the purchase of the location, kitchen equipment, ingredients, etc.
Your savings and start-up funds can help you decide on the type of business to start. Remember: you don’t have to go into thousands of dollars’ worth of debt to begin your journey. Calculate what you can afford and start from there.
Reckon with the Competition
Survey the landscape for your competitors. If another business has occupied your chosen space, don’t back down just yet. Your existing competition can serve as a good indicator of business opportunities. You can learn from them and differentiate yourself from them in terms of service or products.
Also, talk to others in your field. With this option, you need not approach them as ‘the competition.’ Instead, get a feel their daily experiences — how their operations work, their challenges, start-up costs, etc. Let their answers decide if you want to make a break in the same industry.
Plan Your Operations
Before you start a business or decide on which one to start, evaluate the kind of operations you can handle. Would a partnership suit your business? Can you control or afford to have many people around you on the ground? Would you rather a more tech-oriented company or prefer to work from home with a stable WIFI connection. All of these depend on the type of business you want to launch.
Determine Your Commitment
If you still have a full-time job, start a side-business. Build your business slowly while you make the switch to being a full-time entrepreneur. Avoid quitting your full-time job. Wait until your side business’s income reaches almost as much as your full-time job’s income. Some companies might take longer to grow, but with patience, you can expect more returns on your investment.
When it comes to entrepreneurship, resting your laurels is never an option — you have to keep studying the market, combining your passion with your ideas, and building your business, one day at a time. Research is vital, even in the first step of starting your business.