Where do I start?

What business should I start?

1. You are probably wondering what kind of business you should start….

2. The answer is always the same – pick a venture you know the most about, and then research it some more.

3. If you have several interests, but aren’t sure which would make the best business, consider how you can translate your strengths, education, and skills into business opportunities, and research the marketplace to see which types of business are presently needed in your area.

Choosing a Business You Know

1. Starting a business in which you already have experience has many advantages:

2. You can use your knowledge about the industry.

3. You can use your training and skills.4. You can use your network of contacts who

might help you find financing, suppliers, and customer.

Starting a Business in Unfamiliar Industry

1. Unfortunately, the lure of quick profits convinces many people to start businesses in areas they know little or nothing about.

2. This is a sure recipe for failure.3. If you don’t know much about the business

you want to start, but are set on it, be prepared to spend enough time learning it before you begin.

Talk to People in the Industry

1. If you are interested in turning something you know and love into a business, talk to people who knows the business about what it takes to run that kind of business.

2. Learn all you can about start-up costs, overhead and expenses, and how much revenue you can expect to make.

Research and Evaluate Your Business Idea

Here is a step-by-step guide to evaluating whether you and your chosen business are a good fit.a) Try it out. Before you start a business of your own,

get some experience in the industry or profession that interests you – even if you work for free. Learn everything you can about every aspect of the business. For example, if you want to start a pasta shop, but don’t know ravioli from spaghetti, go out and get a job with a pasta maker!

Research and Evaluate Your Business Idea (continue)

b) Evaluate whether you enjoy the work and excel at it. If you don’t like the work, find a new venture. It is a lot harder to make success of a business you don’t like and it’s unlikely you’ll like something you are not good at. If you enjoy the work and determined you were skilled enough to base your own business on it, proceed to the next step!

Judge Your Ability and Desires to Handle Every Aspect of the Business

c) If you don’t want to, or can’t pitch in wherever and whenever something needs to be done --- You should thing twice about starting that kind of business.

Determine Whether the Business Has a Solid Chance of Turning a Profit

d) After working in the field for a few months, you should have a good idea of whether the business is a potential moneymaker.

• To be sure, you should analyze your market and conduct a break even analysis, a preliminary financial projection that shows you the amount of revenue you’ll need to bring it to cover your expenses. (this is your break-even point)

Evaluate the Risk This Particular Business Requires

e) Even the best-laid plans can sour if you pick a business that is unusually risky, vulnerable to competition, or subject to financial failure.

• For instance, the following businesses have higher than average failure rates:

• Computer stores, laundries and dry cleaners, florists, used car dealerships, gas stations, infant clothing stores.