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Key Takeaways:
- Choose a business that takes advantage of your skills and expertise; one that is rewarding as well.
- Do your homework to make sure the business you choose will be competitive and sustainable.
- Global business specialists can help you get started with the account support you’ll need to succeed.
Thinking about starting your own business? Want to be your own boss? You’re not alone.
According to the U.S. Census Bureau, new business applications were at an all-time high in 2021. A 2022 survey1 found that 43% of Americans planned to start a business that year.
If you’re in that group, do you know where to start? How will you know what type of business is a good fit?
Discover the business that’s right for you
Let’s start with the old saying, ‘choose a job you love, and you will never have to work a day in your life.’
Owning and running a business is hard work, so imagine how much easier it will be when you really love what you do. Certainly, it’s important to be passionate about it, but your business also needs to be something you’re good at doing. Plus, it needs to be viable, something that will help you make money, in order to be sustainable.
Let’s look at 5 things to consider when deciding what type of business you should start.
1. Assess your experience, skills, and credentials
When you leverage what you already know, something that takes advantage of your interests and talents, your business is more likely to succeed. So first, take an honest assessment of your strengths and weaknesses. What work experience do you have? What are you particularly skilled at doing? What type of business will give you a sense of purpose?
You have many choices. For example, if you love animals, you might want to consider a pet sitting business, or if you’ve had construction experience, a home repair service might be right for you. Do you have an eye for style? You might consider opening a vintage clothing or a floral shop. Do people notice your handmade jewelry? Consider selling it online. Famous for your smash burgers? A food truck might work for you.
Besides considering your own skills and talents, look at the needs of the market. Businesses succeed when they offer value to customers. Do people need what you can do? Do they want something you can produce?
The beauty of starting your own business is that so many things are possible, but it’s important to choose a business where you can add value with your unique ideas, talents, and skills while offering something that people are willing to pay for.
2. What type of work do you enjoy?
Once you’ve assessed your skills and experience, take a hard look at what you liked about your past jobs. Do you prefer to work alone or in teams? Are you motivated by fast-paced, social environments, or do you prefer something quieter?
Enjoy is the key word here. If dealing with uncertainty and risk makes you lose sleep, business ownership might not be a good fit. But if you like the flexibility to try new things, set your own schedule, and make your own decisions, the right business opportunity may be perfect for you.
3. What type of lifestyle do you want to have?
This question boils down to time and money.
Starting, owning, and running a business can be time consuming. While many people envision a free and easy lifestyle, the opposite can often be true. Especially in your company’s early stages, there’s a lot to be done and usually not many people to do it—in many cases, you’re it. If you find that you’re better at managing than doing, look for a business where you have employees. But this also means you’ll need to hire, train, and oversee the team. If you have a specific skill that’s difficult to replicate, know that your business will be heavily reliant on you. Your new business may give you flexibility in terms of where and when you work, but it will only become sustainable once you reach a good work-life balance.
Money is another matter. The biggest reason people started a business in 20221 was because they wanted to earn more money. However, few businesses make a lot of money right away, so many people choose this lifestyle because business ownership has long-term financial opportunities for them. In fact, some people start a business for the sole purpose of someday selling it.
4. Research market size and demand
This will tell you whether your business idea is viable. Survey potential customers to see what they need or want and how much they’re willing to pay for it. You’ll also need to look at your potential competitors, to see how you stack up. How much do they charge for their products or services? How is their business structured? What do they do well, and where do they fail? Sometimes this analysis will help you identify competitive flaws and opportunities where your business can excel.
5. Can you afford to start the business?
Forecasted income and expenses are a critical part of developing a solid business plan. You’ll need to determine how much your new business will cost to launch and run. Do you need office or retail space, a food truck, a new computer, or a delivery vehicle? Raw materials or employees to manufacture a product? Will you need special training, licensing, or permits?
Most people put some of their own money into starting a business; it’s something that lenders may even look for, because they then know you have ‘skin in the game,’ a personal vested interest in succeeding. But don’t let this discourage you. Many successful businesses have been started with little to no money in someone’s kitchen or garage.
Begin your business journey
Although it might feel intimidating, starting your own company can be a difficult but rewarding experience. When you choose the right type of business—one that takes advantage of your unique skills and ideas—you’re more likely to succeed, and certainly more likely to enjoy yourself along the way.
1 2 in 5 Americans plan on starting a business in 2023 - Digital.com
