Choose a New Business

by Norma

Which kind of small business is right for you?

thinking of starting a new business graphicBefore you launch a business because it may make you the most money, remember this is a major life decision. From the age of 21 to retirement at 65, you could spend upward of 90,000 hours working for your new business. Selecting the wrong business at the start could cause a financial belly flop. So think hard before your dive in. Make a wise choice now, and you may find happiness, a more fulfilling lifestyle, and earn enough of money for success.

  1. List your interests. This will help you focus on businesses that will provide the greatest probability for success and eliminate possible failures.
  2. List your skills. No one can be all things. If any aspect of business does not fit within your skill range these are the areas where you will need to get help or consider taking in a partner.
  3. Assess your personality. Are you a people person, or do you enjoy working alone? Do you love to serve others, or do you find people a pain? What age groups do you enjoy serving? One ingredient that is sure to lead to failure is a reclusive or abrasive personality. Think about the people that you have met in business. Who were the ones that you wanted to give repeat business to?
  4. Determine how much risk you can tolerate. Going into business can be scary; especially¬† the first couple of years. Some businesses are scarier than others. If you lie awake nights wondering how large loans are going to be paid, or if you’re going to be sued, maybe a business with less upfront capital or probability of lawsuit is more for you.
  5. Determine how much time your business will require, and ask yourself if you are willing to commit the time. Many businesses require a huge time investment. Can you and your family tolerate a twelve or fourteen hour day schedule?
  6. Take some classes. An excellent place to start is SCORE (Service Corps of Retired Executives), an organization that helps educate individuals considering starting a small business. After taking some SCORE classes some people are convinced that starting a small business is for them, while others are convinced it is not.
  7. Develop a plan. As the old saying goes, if you aim at nothing, you will hit it.
  8. Include an exit strategy. Do you plan to sell it once established, use it to support you for life, pass it on to your heirs or partners? knowing your goal helps you decide the right legal structure for the business and can dodge many tax pitfalls along the way.

Tips:

If raising money and courting investors isn’t for you, try starting small and finance your business growth from its revenues. Some businesses require less capital to start up than others. For example, online businesses cost less to set up. Once established, they can lead to concrete storefronts.

If you are considering an online presence, see how we can help you get things rolling. We build blogs like this one, CMS sites you can maintain for yourself, and standard websites for those who perfer to spend their time working on their businesses. We’re SketchPad Publication. Click here to learn more.

How did you decide which type of business to open? Please tell us about it with a comment or email

{ 2 comments… read them below or add one }

Alicia Luckett November 19, 2009 at 1:56 pm

I picked my business based on my skill and knowledge. I also picked what I enjoyed the most, which is art and design. My business is a graphic design business and it is totally fun. http://www.alicialuckett.com and http://www.alicialuckettweddings.com

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Lsmith December 22, 2009 at 3:24 pm

Very good list of tips/ideas when deciding what business is right for you. Many people fail to realize how much time they will spend nurturing their business into a growing, working machine and that takes time and energy. Of course, if you start a business you love, that you’re interested in, spending all that time is just that more enjoyable. Right after deciding what type of business you want, writing a well thought out business plan is right up there.

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