Lots of millennials have fantasies of quitting their jobs to start their own businesses. Unfortunately, the long-term 15-year survival rate of new businesses is 25.7%, according to the Small Business Administration. Going into business for yourself can be risky, especially if you don’t have a solid plan and an innovative idea. Here are some ways you can choose the right business that has the potential to be successful.
Think About Your Previous Experience
When you want to own and operate your own company, you need to choose something you know. You may be tempted to choose a concept that is trendy or a top choice for profitability, such as a web design company or a catering business. It’s smarter to do something you have experience in so you can position yourself as an expert in the industry.
Evaluate Your Skills
The next thing you should consider before choosing your business idea is what you’re good at. Take time to evaluate the skills you bring to the table and opt for an industry that helps showcase your strengths.
Consider Your Lifestyle and Time Commitments
Business owners also need to be realistic when it comes to their lifestyles and time commitments and their organizations. If you have a young family, you may want to open a business that can operate out of your home. If you love to travel, consider starting a company that lets you visit different places around the world.
Look for Helpful Resources
New entrepreneurs can also save time by investing in helpful online resources. Research different free or low-cost tools to help with accounting, inventory, and hiring. When advertising on Facebook, this Facebook ads maker can help. You can easily create your own company ads that have custom content, such as your logo, fonts, colors, and branding. This can be a great, cost-effective way to market your company.
Research Market Demand
Part of a successful business is understanding your industry’s demand and the competition. Before moving forward with a great idea, get an understanding of the current market conditions in your region. Learn about customer attitudes and demand for a product or service you want to provide and research pricing from other brands.
Raise Money for Your Company
The next step with a successful business idea involves your access to capital. When you’re researching different aspects of the industry, you also need to have a clear idea about how much money you’ll need to get started and how to reduce debt. Make sure you have access to investors or loans to cover the amount of funding needed to start your new business. If your great idea is too costly, pick something with more reasonable startup costs.
Draft a Business Plan
Once you’ve chosen the business idea that meets your needs and fits your vision, get started on writing a detailed business plan. Work with experts in the field to help flesh out your strategies for each section of your business plan. A business plan can also be a helpful tool for getting funding for your idea and recruiting potential partners if you need guidance building your new organization.
A successful business starts with a solid idea that proves to be profitable. Take your time determining which business idea works best with your talents, lifestyle, and capabilities.
ABOUT THE AUTHOR: