Is there such a thing as “right” business for you? It is a fact that not everyone is suitable to become a small business owner. There are signs that tell you whether you will succeed in owning a small business. But once you know that you have what it takes to be a small business owner, can you take it one step further and figure out which type of business will be a good fit? I think the answer is YES.
Some people would argue that all businesses will make money as long as you work hard. No doubt, this is true. It necessary but not sufficient condition for owning a business. There is more to running a small business than just working hard and making money. First and foremost, you have to enjoy what you are doing especially when you spend 10-15 hours a day for 7 seven days a week. If you are not having fun and do not enjoy what you are doing, you will run out of gas sooner or later and will end up hurting your business. On the flip side, when you are passionate about your business you will want to give it everything you have and make it a success. At the end of the day, passion will always win over simple love of money.
So, how do you go about finding the type of business is right for you? There are several dimensions to this question and looking at each of them will help you narrow down your choices and move a step closer to your final decision.
- How much money do you have to invest? Not having enough money should not stop you from starting a business. You may have to scale down your vision and start small. Look for businesses that require low initial investment. You can look at these tips on how to start business with little money.
- How much time do you have? If you already have a job and do not want to let go immediately to work full-time on the business you will want to look for businesses that you can start on a part-time basis and do not require you to be on-site physically. Owning an E-Commerce business (think EBay) that you can operate from anywhere is ideally suited for this situation. Don’t forget to read the tips on how to succeed when you are only working part-time on the business.
- Are you skilled in a particular area? If so, you should study successful businesses such as photography studio or bakery. Think about how you can translate your love for this sought after skill into money making business. At the same time, keep in mind that there is lot more to running a business than just baking cakes.
- Do you have prior experience? If you have never owned a small business, I strongly encourage you to purchase an existing business, preferably a franchise one, instead of starting from ground up. Starting a new business is lot more challenging than you would think, especially when you don’t have experience.
- Do you want the comfort of well-defined systems and processes? If this is the case you should look for a franchise business where the franchisor has taken care of many aspects the business operation for you. This is also suitable for someone who has never owned a business as mentioned in the previous bullet.
What is your experience? Do you agree with this assessment?
@Sarah – Excellent point. Thanks for bringing it up.
I would also add that a great way to determine the type of business you’d like to start — especially for those that haven’t started businesses before — is to work for an existing business for a year or two first and learn all you can on someone else’s dollar. It’s like extended training that you get paid for, and you’ll be in a much better position and more knowledgeable about your industry once you’ve had the chance to experience it without the risks involved in being an entrepreneur.