Many people want to start their own business and work for themselves. It often seems like the right answer when you are stuck in the same job for years and don’t feel like you are getting anywhere. But then the question arises, what is the right business for you to get into?
Some people find going to different trade shows and seeing what businesses are for sale is a good way to decide what business they should start. Others rely on friends and family to guide them and provide advice as to what they should do. After exhausting all these resources, how do you know if you are about to enter the right business for you?
It is easy to fall for the franchise sales pitch that says “you are guaranteed returns,” but nothing in life is guaranteed. If you know what you are doing regarding the business and you believe in the business’ future, success will come. However, there is no such thing as an “easy business,” regardless of what franchise and other business owners tell you.
When choosing a business you are already familiar with, you are one step ahead of the game. You can use your own experiences, contacts, and skills to make the business work. If you are in an industry you know well, the advantage lies with you rather than someone who is new to the industry and is still learning what you already know.
If you are looking to turn your passion into a business, make sure you do the appropriate research before getting started. Speak to your contacts in the industry and ensure you know what it takes to operate. There may be no doubt that you know the business well, but do you know how to operate the business effectively? Do you know what the start up costs will entail? Do you know where you will get your customers and suppliers from? Just knowing the business itself is great, but having the extra knowledge of how to run a business is what will help you ensure you are successful at it.
Let’s say you have several interests and are not sure which avenue to take—this doesn’t mean you shouldn’t start a business because you are not an expert in that industry. Take your experiences, education, and use it to your advantage. Use what you know about business in general and apply it to what you are interested in starting. The best thing to do is do your homework—do your research on all the businesses you are thinking of starting, and analyze the pros and cons of each. Which will yield the most profit? Which will have lower start up costs? How long will you have to be open before you are profitable? Can you operate at a breakeven point? If so, for how long? These are all things to consider when thinking of entering a business you are not that familiar with.
The best way to research the previous questions is to create a business plan. A business plan is going to be your road map and answer all the relevant questions you need to ask yourself before opening a business. This will also help you prepare to face investors and banks for funding your business, among other benefits.
Ensure you are spending the time doing the research necessary to get an idea of what running the business will entail. If your passion for the business grows during the research stage, you know it’s the right business for you.