Some business ideas are far more viable than others.
Take a systematic approach to choosing the type of business you are going to start. You need to begin the process by getting your mindset into the right place. It is important to free yourself of any emotional bias; and be prepared to make a choice based upon cold, hard, logic.
Avoid choosing the first idea that presents itself without comparing it's potential to other options.
Too many people make their choice of business in a random fashion; for example: influenced by a friend who did something similar; or another business they see operating, and the thought that they could do that too. Some people choose to buy a franchise because they trip across the opportunity and get sold on the idea without ever considering anything else. Others are prompted to start up something in an industry they are familiar with, simply because they know that industry, rather than because that industry is most suited to them.
- New businesses frequently require more money, time and committment than what the new business owner anticipates. You should consider what resources you have available and choose a start up that you think will only require 70 or 80% of the time, money and other resources which you have available.
- New businesses often require more planning and preparation than what is anticipated; so don't set yourself a tight schedule. If you think you can plan, prepare, and launch a business in 4 weeks; develop a schedule that allows for a launch in 6 weeks. This gives you space to prepare much better for the launch; and reduces the likelihood of a bad launch. Launching a business that is under prepared can create problems that you may never recover from.
- Take a step by step approach to deciding what sort of business you will begin.
Start with a List of Ideas
These ideas may come from a range of places. You may have some things that you have thought about doing in the past; and if so, write those down.
Consider what you are familiar with. This may include industries you, family or friends, have worked in. It may include things you have studied, done as a hobby, or had a special interest in.
Consider products and services that you use yourself, but find to be unsatisfactory. This might be a type of food or other product that you find difficult to obtain locally, or with a level of quality you desire. You may be aware of a service that people often complain about.
Consider the longevity of such a business. Some businesses are more vulnerable to change over time; while others can be more stable.
Is it a seasonal business? Some businesses can deliver steady cash flow over the entire year; while others are very busy for a time, then slow.
Consider Your Ability to Deliver what is on your List of Options
There may be things you have listed which you can see a demand for; but you would be stretched to supply. You might not have the resources to start that type of business.
Reduce the list by removing options that are not as good a fit with you.
Compare the Profitability, Risks and Overall Viability of what remains
Aim to find an option that has minimal risk, optimum profit, fits your desired lifestyle and is most suited in every way to you
Once You Choose an Option -Plan Properly
List what is needed to get started -time, money, equipment, physical resources, skills, knowledge, contacts/suppliers; and anything else.
Do not move forward until you arew very comfortable about being able to succeed.
When you choose to start an appropriate business, and plan for success properly before launching; your chance of success will increase dramatically!