How to Start the Right Business: A Step by Step Guide
When it comes to choosing a small business, there are two types of entrepreneurs. The first is the person who is in love with the idea of starting a very specific business. This person may be a gardener who envisions opening a nursery or a chef who has long dreamed of owning a restaurant. The other potential small business person is someone who is also in love, not with a specific business, but with the idea of being their own boss. Both paths have their risks and rewards. The question is how, when and where to start the right business? This article will try to share some guidelines that every entrepreneur should follow.
Do What You Love, But Consider Practicality
There’s a saying: “Do what you love, and the money will follow.” While this is noble and possibly true, there’s more to small business success than simply doing what you love. Doing what you love is indeed the first prerequisite when you start the Right Business, but it is just that—a first step.
Live with Passion
In life, we tend to succeed and perform well when we are engaged in something we really enjoy. Your business should be no different. By now, you know what excites you, what you love most. You know what your passions are and how you like to spend your time. Once you get in touch with those things, you can begin to create a business of purpose around them.
That is your first assignment: deciding which of your passions you love enough to start the Right Business. Remember, your business will become your baby, and like any baby, it will require a lot of love, time, money, and attention if it is to grow strong and healthy. Of those resources, right now, you should be most concerned with time. Your new business will take a lot of time, so pick something that you love doing because you will be spending a lot of time doing it.
Brainstorming Business Ideas
Once you know what you love enough to spend all day, every day doing it, you need to figure out what business you could start that relates to that love. For example, if you love plants and gardening, you could:
- Start a nursery
- Open a flower shop
- Start a lawn care business
- Grow organic vegetables
- Buy a farm
- Start a winery
This is the time for one of those “anything goes” brainstorming sessions. Write down any idea that comes to mind, no limits! Getting inspired can be as simple as opening up local directories and looking under categories that interest you. You might be surprised at how many different types of businesses others have created around the same passions. It’s important to be open-minded and creative when you start the Right Business.
Read How Launching a Small Business 4 Years Ago Changed My Life Forever
The Market Reality Check
While it is good to let your mind roam, it’s equally important to come back down to earth. What if, instead of gardening, your passion is nineteenth-century architecture? If you can’t find people willing to pay for your expertise, you don’t have a business, you have a bust. Be realistic—there must be a market for the product or service you plan to offer. To truly start the Right Business, you need to match your passion with a viable market.
Making a Profit
Assuming you’ve found a passionate practicality, the next question is whether you will be able to make sufficient profit from it. There’s no sense in starting a business if you can’t make a good living. Whatever business you want to start, you have to be able to sell your product or service at a price that is high enough to make a profit but low enough that people will buy it. Before jumping into a business, you have to crunch some numbers and do your research. This is crucial when you aim to start the Right Business.
Learn from Others
Look around. Are there any businesses similar to the one you want to create? If not, that might tell you something. Maybe your idea is so cutting-edge that no one else has thought of it. While innovative businesses can become market leaders, it usually takes a lot of money to create such a business. If you don’t have the drive, risk tolerance, or capital, it may be best to follow rather than lead. Learn from those who have gone before you to ensure you start the Right Business.
Choosing a Proven Path
Consider choosing an idea that others have successfully implemented. You should be able to find plenty of information that can be of great help to you. Books, associations, and trade magazines are valuable resources that might not be available if you choose a niche market or an obscure business. These resources can guide you to start the Right Business.
In Love with Entrepreneurship
Now we come to the second type of entrepreneur—the individual who is more concerned with being their own boss than with starting a particular business. These people want to be their own boss, make their own decisions, rise or fall by their own ingenuity, and enjoy the freedom that comes with being a small business owner. Their main goal is to start the Right Business that gives them independence and satisfaction.
Finding a Market Need
The question is, what is the best sort of business for you to start? Find a business that fulfills a market need. This sentence should become your mantra. The best businesses find a need, a niche, and fill it. Do that, and almost everything else will fall into place. If you’re looking for a business to start, the number one thing to discover is whether that business can sell something people need. This is a key step in ensuring you start the Right Business.
Steps to Start the Right Business
Here are six steps to take to find that great business idea and ensure you start the Right Business:
1. Research, Research, Research
Your first step is to analyze both the marketplace and the opportunities available. Look around, find some businesses that seem promising, and learn about them.
- How hard are they to create?
- How much money do they make?
- How much money would you need to start the business?
This research is essential to start the Right Business.
2. Product or Service?
Decide whether your business will provide a product or a service. Service businesses tend to be less expensive to start, as there is no inventory to buy. Product businesses profit from marking up prices on goods. Choose the business type that suits your temperament, skills, and goals. This decision is crucial when you aim to start the Right Business.
3. Analyze Your Skills and Experience
Suppose you have spent your career doing marketing for major corporations. That skill should be tapped when deciding what business is right for you. Even if it’s not a marketing business, choosing something that uses your background can give you a leg up on the competition. This analysis helps you start the Right Business that fits your strengths.
4. Consider Your Options
You could create a business from scratch, buy an existing business, start a franchise, or create a home-based business. The possibilities are many. It’s important to realize the variety of options and learn about the pros and cons of each. Understanding your options will help you start the Right Business.
5. Narrow Your Choices
After analyzing the market, opportunities, your skills, and goals, narrow your choice down to a few types of businesses. Then, find people who own and run these sorts of businesses and learn from their experiences. This step is essential to start the Right Business.
6. Start Your Engines
Whether you want to start a business because you want to be your own boss or because you want to pursue your passion, it’s important to do your homework and find a niche that fills a market need. Do that, and you are on your way to start the Right Business.
Read How To Open A New Business: an A To Z Guide To Entrepreneurs
Case Study: Starting a Coffee Shop
Let’s consider a practical example. Imagine you have a passion for coffee and dream of opening a coffee shop. Here’s how you might apply the steps to start the Right Business:
- Research: Look into the local coffee market. How many coffee shops are there? What makes them successful? How much do they earn? What are the startup costs?
- Product or Service: You decide that a coffee shop will provide both products (coffee, pastries) and services (a cozy place to work or socialize).
- Analyze Skills: You have experience in hospitality and a knack for customer service. These skills will be crucial in running a successful coffee shop.
- Consider Options: You could start your own coffee shop from scratch, buy a franchise, or purchase an existing shop.
- Narrow Choices: After speaking with local coffee shop owners and doing further research, you decide that starting your own shop offers the creativity and control you desire.
- Start Engines: With a clear plan and passion for coffee, you begin the journey to start the Right Business, ensuring it fills a local need for high-quality coffee and a welcoming atmosphere.
Conclusion
To start the Right Business, you need to begin with understanding your passions and skills and then find a way to turn them into a viable, profitable business. Whether you’re in love with a specific business idea or the concept of entrepreneurship itself, it’s crucial to research, plan, and validate your ideas thoroughly. By doing so, you’ll be well on your way to creating a business that not only fulfills your dreams but also meets the needs of your market.
Remember, start the Right Business, and you’re more likely to succeed and find fulfillment in your entrepreneurial journey.