How To Decide What Business To Start in 8 Simple Steps
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.
Recommended reading: 30+ Small Business Ideas To Become Your Own Boss
Below are my tips on how to choose a business idea.
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:
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.
Recommended reading: 10 Best Things I Did To Build A $5 Million Dollar Blog
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:
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.
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:
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.
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:
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.
It’s important to think about how your business will fit into your life long-term. The type of business you choose should align with your goals and the lifestyle you want to create.
One thing that I have always really liked about blogging is that it’s a business that allows me to travel and work from anywhere. I also really enjoy the flexibility in my schedule.
Ask yourself:
For example, if you want flexibility to travel, an online business like blogging or e-commerce might be a good choice. If you’re looking for a steady income with less involvement, then a business model like renting out property or running vending machines could be a good option.
Now that you’ve thought about your skills, market demand, resources, risk tolerance, and goals, it’s time to brainstorm different business ideas.
Here are some categories to help you brainstorm:
I recommend that you make a list of potential ideas and narrow them down to a few that excite you the most.
Recommended reading:
Before committing to a business, it’s a good idea to test it out. Testing allows you to see if your idea is actually possible and to get feedback from real customers.
Because I started my business as a side hustle, I was able to fully test it out and see if I could make money with it before leaving my day job. I think this was really great so that I could make sure it would actually work!
Here are some other ways to test your business idea:
Testing helps you avoid wasting time and money on an idea that may not work. Plus, it gives you the chance to make improvements before launching on a larger scale.
Once you’ve tested your idea, it’s time to make a plan. Even if it’s a simple one-page business plan, having a plan will help you stay focused and organized.
When I started my blog, I wrote down a simple plan outlining the topics I wanted to cover, how I would attract readers, and ways to eventually monetize. This plan helped me stay focused and organized.
Your plan may include:
After that, it’s all about taking action. Remember, you don’t have to have everything perfect to start. The most important thing is to take the first step and learn as you go.
Below are answers to common questions about how to decide what business to start.
If you want to become an entrepreneur, then there are many ways to figure out what kind of business you should start. You will want to think about your skills, interests, and passions. Think about what problems you can solve for others and research whether there’s a market for your idea.
The most successful small business to start depends a lot on your skills and effort, as there is no guarantee that you will be successful. Your chances of success can vary! But, successful small businesses can include starting a website, proofreading, bookkeeping, virtual assisting, starting an online store, and more.
Service-based businesses like freelancing, virtual assistance, or tutoring are usually easier to start because they require fewer upfront costs and less inventory management (but that doesn’t mean they are easy). Easy all depends on what you find easy, as everyone is different.
Freelance writing, social media management, and consulting are examples of businesses you can start with little to no money if you already have the skills and tools. I started my business with almost no money and I’m glad I did!
When starting a business, I recommend that you look at your skills, market demand, start-up costs, long-term goals, and risk tolerance, and then make sure the business aligns with the lifestyle you want to create.
Niche subscription boxes, eco-friendly products, pet-sitting services, or selling specialized online courses are great examples of unique business ideas.
I hope you enjoyed my article on how to determine what business to start.
Starting a business is a lot of fun and it can completely transform your life. By thinking about your skills, researching market demand, and taking small steps to test your idea, you can find a business that’s perfect for you (and make sure it has business potential).
Choosing the right business idea may take some time, but the steps above can help new entrepreneurs (like you!) figure it out just a little faster.
I started my business several years ago, and I’m so glad I did. I enjoy being my own boss, creating my own schedule, determining how I make a living, and more.
I hope you are able to find a great business idea that allows you to live your dream life!
What business do you think you’ll start? Leave a comment and tell me below!
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