Are you wondering how to decide what business to start? One of the most common questions I receive is from people asking me what kind of business they should start. I’ve been running my own business for over 10 years, and I can honestly say it’s one of the best decisions I’ve ever made in…
Are you wondering how to decide what business to start?
One of the most common questions I receive is from people asking me what kind of business they should start.
I’ve been running my own business for over 10 years, and I can honestly say it’s one of the best decisions I’ve ever made in life. My business started out as a way to make extra income and has now been my full-time job for around a decade. I’ve since made well over $5,000,000 over the years with my business, and I love being a small business owner.
Running your own business can give you freedom, flexibility, and the opportunity to do something you’re passionate about. But with so many options out there, it can be hard to figure out where to start.
In this article, I’ll show you the steps to decide what kind of business is right for you. Whether you’re just starting to dream about being your own boss or you’re ready to take the leap, these tips will help you make the best decision.
Best Steps To Decide What Business To Start
Below are my tips on how to choose a business idea.
1. Think about your skills and interests
One of the first things to think about when starting a business is what you’re already good at and what you enjoy doing.
When I first started my blog, I realized that writing and helping others with personal finance were things I was truly passionate about. This realization made it easy for me to stay motivated and turn my hobby into a successful business.
Ask yourself these questions:
- What do I enjoy doing in my free time?
- What am I passionate about?
- What are my strengths and skills?
- What do people usually ask me for help with?
For example, if you’re great at baking and love trying new recipes, starting a home bakery or selling baked goods online could be a good fit. If you’re good with computers, then maybe there’s an app that you want to create that you think people would benefit from.
One question I receive a lot related to this step is: Do you need to be passionate about a business idea?
Here’s what I think: I don’t think you always have to be super passionate about what you’re doing. Maybe you’re passionate about what a possible business idea will allow you to do instead – such as being able to have a flexible schedule, being able to make money, or helping people solve a specific problem. Or, maybe you’re just really good at something and you know that you can turn it into a successful business idea!
Some of the most successful businesses are built on skills or knowledge rather than passion. For example, you might not feel strongly about bookkeeping, but if you’re great with numbers and there’s a demand for your services, it can still be a profitable and fulfilling business. Passion can grow over time as you see the impact your business has on others and the lifestyle it creates for you.
2. Research market demand
Once you have an idea in mind, the next step is to make sure there’s a demand for it.
Even if you’re passionate about something, it’s important to make sure that people are willing to pay for it. After all, you do need to make money so that you can pay your bills.
Here are some ways to research market demand:
- Use tools like Google Trends to see if people are searching for your business idea.
- Read forums and social media groups where your target market hangs out. Look for questions people are asking or problems they’re trying to solve.
- Check out competitors in your niche. If there are other businesses selling similar products or services, that’s a good sign that there’s a market for it.
You can also talk directly to potential customers, such as by asking friends, family, or online communities (such as local Facebook groups or online forums) for feedback on your business idea. For example, in a local Facebook group that I am in, someone recently posted a question and shared their business idea and simply asked who would use it and if the community thought it was needed. The person got a lot of great feedback, and I saw that about one week later, they did move forward and start their business.
3. Figure out start up costs
Not all businesses require the same amount of money, time, or resources to get started.
Some businesses can be started with little to no money, while others may need a large amount of money up front. Before you decide on a business plan, it’s important to think about what you can realistically afford. I wish anyone could start any business they dream of, but that’s not reality.
For my blog, I started with very low costs in the beginning and upgraded as I grew. I didn’t have a lot of money when I started this as a side hustle, so I didn’t want to spend a lot of money either.
Here are some examples of the differences:
- Low-cost business ideas: Freelancing, blogging, selling digital products like printables, or tutoring.
- Higher-cost business ideas: Opening a retail store, starting a food truck, or manufacturing a product.
Along with start-up costs, you may also want to think about if you want to get started with a bank loan for your business. Of course, this does come with more risk, as I will talk about next.
4. Think about how much risk you want
Starting a business always comes with some level of risk, so it’s important to think about how much risk you’re comfortable with.
Some businesses are more stable and predictable, while others can be riskier but have higher potential rewards.
When I left my full-time job to blog full-time, it felt risky, but I had already built a steady income from my blog as a side hustle, which made the transition smoother. Plus, a blogging business is pretty affordable to start, so it really didn’t seem too risky.
But, other businesses can be much more risky. They may require you to spend a lot of money to get started or even require you to get a business loan.
Here are some questions to ask yourself:
- Am I okay with financial uncertainty? Do I need a stable income each month?
- How much time can I dedicate to this business?
- Do I need to get a business loan?
- Do I want to start small as a side hustle or go all in?
If you’re nervous about risk, you may want to try starting a low-risk business like freelancing or selling digital products. You can also start your business as a side hustle while keeping your full-time job, which allows you to test the waters without fully committing right away.
What business do you think you’ll start? Leave a comment and tell me below!