How to Decide What Kind of Business to Start

So you are itching to go into business for yourself, but you don’t know where to begin. Here are some tips on helping you decide what kind of business to start.

Difficulty: Moderate

Instructions

1. Write down your likes and dislikes. There is no sense in starting a business that involves doing everything you dislike doing.

2. Write down your skills. What do you know how to do that other people will pay for?

3. Look at market trends. What is going on in the world? What kind of things are people buying? What types of services are hot?

4. Look at your lists for Steps 1-3 and begin generating business ideas.

5. Seek input from family, friends, and trusted associates. They may notice talents and skills that you never thought of.

6. Do some market research to see if any of your ideas are viable. Just because you think something is a good idea it doesn’t mean that it will catch on.

7. Read- a lot. Spend time reading about business and entrepreneurship. Read both books and magazines. Read stories of successful business owners. Keep up on the latest business news and trends.

8. Come up with a plan. What kind of business will you start? When will you start your business? How will you make sure your legalities are in order? How will you finance this? How will you market your business?

Tips & Warnings

• If you have no business experience whatsoever, consider taking some classes or getting some mentorship from SCORE.
• Keep your costs as low as possible but don’t cut too many corners. There is a difference between being frugal and being cheap. When you start a business, strive to be frugal.
• Don’t get caught up in the “fun” things like buying business cards and logos. Yes these are important but these items aren’t going to make you profitable.
• Don’t expect your family and friends to be your customers. You will need a much larger market than that to be successful.

Resources

• Small Business Ideas: 400 Latest & Greatest Small Business Ideas
• (SCORE) Counselors to America's Small Business
• 101 Businesses You Can Start With Less Than One Thousand Dollars: For Stay-at-Home Moms & Dads