What Kind Of Business Should I Start? How To Decide
There are thousands of successful start-ups around the world today, led by first-time entrepreneurs. In Australia, small business and family-run startups make up almost 98% of all businesses. Leading a successful business requires some careful planning on the part of every business owner. In this article, we shall explore some ways in which you can determine the type of business that is right for you.
What kind of business should I start?
Considering the experience most entrepreneurs have had, there are several questions that first-time business owners should ask themselves before starting a business. Let’s look at some of them below:
Where does my interest lie?
Think about all the things that interest you. If you can create a product or service that reflects your hobby, this could be a great business idea for you. A consultant can help find ways for you to market it to your target audience. Your products do not have to be grandiose; something that you would find every day could work well within your niche.
For instance, a successful business owner developed his business on his favourite beverage, coffee. By introducing innovative marketing tactics, like monthly subscription offers, he was able to scale his business to great heights. Another successful business owner says that any good business idea combines what you enjoy doing, what can be translated into profits and how you can serve people through your product.
What societal problems am I able to address through my business?
Putting your consumers and their problems first is the cornerstone of running any good business. When considering what kind of business you should start, think about the ongoing problems that your society is facing. Develop a product that is geared toward answering these challenges and benefiting many people.
A well-known entrepreneur observes that solving larger problems will mean more business for you. When thinking about what kind of business you should start, contemplate enhancing a service that is already available. Or you can fill any gap in an industry which no business has done yet.
How much experience do I have?
Experience can be helpful when it comes to starting a business. Look at your resume and see your past personal and professional experience. Think about how you can use that to generate demand in the market. It can be challenging to come up with a business idea from scratch, but with past experience in a certain field, you will have some direction in setting up your business.
How much capital do I have, and how much will I need for my business?
The amount of startup capital you invest and get a return on constitutes the practical side of running your business. It is not in your best interest to get a loan or invest a huge amount of capital in your business if you are not confident about your product. You need to identify whether your product is economically viable and whether customers will want to keep investing in it.
To know what kind of business you should start, consider your current income level and whether you can get additional funds to start your business. If you want to avoid incurring any debt initially, you can keep your current job and manage your business on the side until the latter flourishes.
What kind of lifestyle do I prefer?
This may not seem an important factor, but lifestyle preferences matter when it comes to starting a business. Make a plan that includes how much income you would like to earn in your first five years and how much time you wish to dedicate to your business at that time. Consider time for vacations, sick leave and other factors for yourself and those working for you.
Most popular small businesses in Australia
In Australia, there are several businesses that have gained considerable popularity in the last few years. Agriculture (including dairy farming, beekeeping, etc.) based businesses make up a large section. Property management, real estate, and construction services also constitute a significant portion of the industry’s GDP.
Thinking of starting a business? Consider obtaining business insurance to protect your organisation from threats.