Methods in Choosing a Business

Choosing the right business is the first step to entreprenuerial success and this goes beyond ones personality. This can be as crucial as selecting your course in college, or in a university. It’s not simply picking one that interests you, it’s choosing one that fits your best interests, personality and budget.

According to severeal studies made by the U.S. Small Business Administration, only 66 percent of small businesses survive its first two years, and survival rate lowers to 39.5 percent in at least 6 years. In 2000, it is estimated that small businesses closure is as high as 550,000 due to business failure.

As an entrepreneur, you therefore need to find a business that has the greatest chance at success as possible. Of course you won’t get a business that will run for a few months, do you?

Key ideas includes looking through your strengths and weaknesses. You need to determine what you are capable of, and those that you cannot. Doing so will help much in choosing the right business that is suited for you.

Research! You need to research on the potential market, how other similar businesses are doing, what are they missing and what works well with them. This will give you an insight of your future business plan, and how to mold it to make it stand out on the competition.

Below are few approaches that can help you in choosing the best type of business.

  1. Stay on budget – The kind of business that you can start depends on the amount of capital you can raise and the resources you currently have at hand. So you need to focus on the available resources and stay on budget not to spoil your business during the startup process. There is a good thought i’ve read in start up strategies mentioning a phrase that says: “Spending more doesn’t necessarily help, but spending too little will hurt“.Startups with huge amount of capital tend to spend much on equipments and furnishing, hiring employees and launching the business in grand style with loads of inventory. However, having a small capital requires you the stretch what you have and start the business on much smaller scale.
  2. Go with the beat, Stay on trend. Another strategy for selecting a successful business is to start one that is currently hot and new.
  3. Few Competitors. As a new entrepreneur, you may also consider a business that has a few competitor in your target market. This would give you a bigger chance of success if you focus more of your time on your products and resources than worrying about your competitors. As an example, you would be better off putting a different business if your target location is already filled up with internet cafe’s.
  4. Knowing what your market’s need will allow you to formulate better solutions, products or services that is ideal to them, and align it to your expertise.
  5. Sell what your market needs. Put up a business that is likely needed by customers in your target location.  If your business is something that will give better accessibility to your market, you will become your customers primary option.

In choosing your dream business, the key is to put up an enterprise that fills an unmet need of the market and to look for new niches and ways to dominate it.

 

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One Response to “Methods in Choosing a Business”

  1. Janielou Aquino says:

    I think we could also add up Assesment of Location it might not be Located at the Central Business District but at least located at the Secondary Business District of your place…
    Engaging into business must be tough! You must have great patience and enthusiasm!

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