Entrepreneur 101: How to Decide What Business to Start

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Entrepreneur 101: How to Decide What Business to Start

In today’s world, the appeal of the 9 to 5 is fading fast. The age of the entrepreneur has arrived and now, more than ever, people are considering striking out on their own to make their way in the world.

In fact, studies indicate that 27 million Americans intend to leave their day jobs in favor of self-employment by 2020.

If you’re one of these free-thinking individuals, there are countless opportunities before you. Read on for more information on how to decide what business to start.

Do You Have What It Takes?

Becoming an entrepreneur is a lot harder than finding a better job. So, if you’re simply unhappy in your current position, rather search for happiness in another line of work or with a different employer.

Entrepreneurship is difficult. You won’t get many days off when you’re starting out. You need boundless enthusiasm and determination to get a new business off the ground.

Speak to a business coach for an objective opinion about whether you’re a good fit for entrepreneurship.

Brainstorm Business Ideas

The point of going it alone is getting to do what you want to do with your time. In this light, it makes sense to launch a business that appeals to your interests and passions.

Think about what really drives you and the skills that you already have. Then, take some time to think about cool business ideas that match these abilities and interests.

Be open-minded. As you do your research, you’ll most likely have to adjust your options as you go along.

Financial Aspects

It’s a sad fact of life that you’ll need to back up your hot new business ideas with cold, hard cash. Another reality is that it’s going to take some time to get your business set up, find clients, and start earning.

You need to be sure that you can survive financially until your small business can sustain itself and you. If you want to approach lenders or investors for funding, you need a business plan and clear-cut goals.

The bottom line is that it’s imperative to do your homework thoroughly before going it alone. Part of this process includes a plan B in case your business doesn’t do as well as you imagined.

There will always be aspects of a business that are unpredictable. Fuel prices, international exchange rates, taxes, and other aspects can eat into your budget. Make provision for these fluctuations when setting up your business plan.

Researching the Finer Details

The list of things to consider and questions to ask before launching your entrepreneurial ideas on the world is a long one. These are a few of the most important ones to consider:

  • Will you offer products, services or both?
  • Do you use similar products and/or services?
  • Will your business help to solve a problem for potential customers?
  • Will it add convenience or joy to their lives in some way?
  • Will you trade online or open a physical store?

We live in rapidly changing times. Many of the products that were hot property 5 years ago, no longer exist, like Blackberry phones. Services like DVD hire have also gone the way of the dinosaurs.

Be prepared to move with the times and give your business room for growth as people’s needs change.

Once you have a clear idea of these issues, it’s time to scope out the competition. Remember, there’s a good chance you’ll have online operators as well as brick and mortar stores to consider.

Step one is figuring out who your main competitors are. Take a look at what they’re doing and figure out ways to do it better. Speak to their customers or look for reviews about their products and services.

Consider how you will market your business so that it stands out from the rest. A website, social media, and blogs are important tools that need specialized skills.

Stocking Up

When you’ve done all your market research, it’s time to consider some of the more practical aspects of running a business.

You’ll need to ensure that you have stock of everything your customers may want, or that you are able to get these items quickly. If you can’t satisfy their need for instant gratification, they’ll find someone who will.

For example, if you’re thinking about starting a business that revolves around cellular technology, you might need to stock some items you haven’t considered. Take a look at this page to find out more about some things that go along with this kind of store.

When you have an idea of all the items you can offer your clients, you need to figure out how you will get access to these items. Where will you order them from? Will you keep an example of each in stock or order as needed?

In the latter case, can you arrange prompt delivery of necessary items to your store or directly to the customer?

Shipping and delivery costs can add up, so be sure to include these in your business budget. If you’re going to be storing perishable items, you can add suitable premises, refrigeration costs, and expiry dates to your list of concerns.

A Final Word on How to Decide What Business to Start

Reading articles like this one is a good first step, but it’s no substitute for experience. Research is important, but sometimes life doesn’t work according to the best-laid plans.

It’s important to speak to other entrepreneurs and find out about their experiences. They will have practical tips and solutions for the everyday obstacles that come with running your own business.

Stay Up to Date

Whether you’re focused on how to decide what business to start, making your home a better place, or important health issues, we’ve got you covered.

Keep reading our blog for up to the minute information on the things you want to know about business and everyday life.

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