Starting A Business: Where Should I Start?
For some entrepreneurs, the right type of business to start is obvious from the beginning. Others may need to do some soul-searching.
The decision of what type of business to open is an important one. It’s worth taking the time to research all options and weighing each option. However, there is no one-size-fits-all method to determine what type of business should be started. Your own experience and preferences are key factors in deciding what type of business you want to open.
To assist, we have created a six-step guide, based upon the experience of entrepreneurs who successfully answered the question “What kind of business do I want to start?”
These are the questions you need to ask before deciding on what type of business venture you should start.
What type of business should I start? These questions can help you determine the right type of business.
Based on the experiences and wisdom of successful entrepreneurs, we have six critical questions that you need to ask to find the perfect business idea. To help answer the ultimate question, what type of business should I start? Here are six questions to ask. With these six answers, you can determine which business is best for you, based on your own personal goals and experiences.
1. Which experience can I draw upon?
Ashley Hill is the founder and CEO of College Prep Ready. She says that she started her business to help her finance her college dream.
She states that she researched the problems students and families face when paying for college. This helped her refine her core message and services.
Based on her research and experiences, she discovered there was a market for what she had to say. Hill is well aware of the difficulties parents and students have when trying to navigate financial aid and college applications.
2. What am I passionate about?
Entrepreneurs shared another common piece of advice with us: Follow your passion. Varieties founder Nick Ehret was passionate about tea. He began his business by creating specialty teas that he would send to subscribers.
He’s a huge tea fan and was able to turn his passion for premium tea into a successful business. When choosing a business to begin, his advice to others is to “[choose] something that you are extremely passionate about because it will be something you work with all day, every single day.”
Spark Rental’s CEO Brian Davis subscribes to ikigai, a Japanese concept. It stands for “reason for existence.”
3. What problem could I solve?
It is well-known that necessity is the mother and father of invention. However, applying this knowledge to the business world wasn’t always the right next step. If an entrepreneur can translate that need into a plan, they could quickly become a successful business owner. Problems and pain points are common in any industry, as any consumer will tell you.
Let’s take Big Barker for instance. In 2016, the company earned $4.75million. Eric Shannon, the founder of the company and its CEO, identified a problem in the dog beds market. Big Barker was created because of the enormous problem large dog owners had with dog beds. They needed to replace their dog beds at least twice a calendar year, as they were not made to handle the extra weight of large dogs.
4. What’s my preferred lifestyle?
Your business goal might not be to have millions of dollars in revenues or thousands of employees.
Antonella Pisani served as VP global ecommerce at Fossil. In addition to her leadership roles at JCPenney Guitar Center, ProFlowers, and JCPenney she was also the CEO of ProFlowers. She was primarily interested in photography and travel. Pisani understood that mobility was what she wanted to pursue and so needed a business model that would not require any inventory or space.
5. What amount of capital can you access?
The lean startup isn’t a fad. In fact, the lean startup concept was born out of an unavoidable and timeless truth about starting businesses — people don’t want to risk their lives savings for a business idea that they aren’t yet able to prove or make a profit.
Robert Lomax, a teacher who set up RSL Educational to provide educational services, is an excellent example of this fact. Not only did his teaching experience allow him to spot gaps in educational books markets, but it also enabled him to keep his job while developing new products.