Finding the right business to start is the first significant step for any entrepreneur. Without this, you are bound to invest money and energy in the wrong trade.
However, choosing the right business idea is no easy task. People have limitless needs, meaning you can sell them anything under the sun. And this is where the problem begins. Research shows that too many options overwhelm the brain and can keep you from making a decision. Or you may make the wrong decision.
This is not to say you must toss a dice and invest in any lucky idea that comes up. Instead, answer this simple question: “what type of business is right for me?”
This article will help figure out the answer. Other successful entrepreneurs are where they are after rightfully conquering the same position you find yourself in, finding the right business idea.
So without wasting further time, let’s get started.
Rule #1: Gold Rushes Aren’t for Everyone
Often times, we pursue business ideas that promise quick riches. News of high demand in some industries lures young entrepreneurs to invest in such industries. But there is a problem with this—the disregard of your lack of knowledge in those industries.
Instead of chasing “hot trends,” channel your energy and money in a business idea you are familiar with. This will save you time learning how that business operates. It will also save you time learning how to survive. You will have more time to think about how to beat the competition, improve your product, and increase your profits.
Passion and Business Success Are One
You should always think with your head. But in doing so, never ignore your heart. The keys to finding the right business idea to start may be in it.
And this is another reason you should choose a business idea you know about; you will have some passion towards things you already know. And make no mistake, passion and business success go together.
Consider the case of Ariel Diaz. In 2007, while on a ride with a friend, they discussed several business ideas. But there was one that struck Ariel, bringing Mystery Science Theater 3000 to the modern age. He later shared this with several friends. And in the same year, YouCastr.com was born.
The new venture focused on several objectives over the next couple of years. It became to be known as a place for content creators and owners to distribute and share videos.
The company hired several employees, expanded its services, and intensified money raising efforts. The founders even left their jobs to focus on growing the company. Despite this investment in time, money, and mental power, YouCastr closed its doors in mid-2010.
As Ariel puts it, several reasons contributed to this: lack of finances, no market to sell the company’s services, slow decision making, etc. But one of the biggest problems, as he says, was that the founders were not passionate about the idea.
They chose it because it seemed profitable. They poured their money into it, went for months without pay, and spent years trying to make it successful. When the going got tough, none of them had the will to keep going.
When you have passion, mastering the ropes of a particular business becomes easy. Working in it feels more like playing. You can commit hours of work without feeling burnt out. Even without pay, you find fulfillment knowing the work itself is the reward.
Often times, when people talk about their success, they usually omit the hard work that produced their results. So new entrepreneurs believe the way to success is free from hurdles. They later find when they are in the business that the only way to the top is a slippery rope. No elevator. And no stairs.
So identify your passions. One simple trick to figure this out is by using the $1 million technique.
Visualize someone giving you $1,000,000 to invest in anything you want. Even better, you are told to never repay this amount. What business would you start?
Usually, most small business owners go for the safest ideas. Unfortunately, this usually takes them away from their passions. The $1 million technique eliminates this problem.
There are several other ways of discovering your passions. Here are some to use:
- Think of things that make you forget to eat, poop, etc. Is it playing video games? Is it solving any problem that shows up in your face? If it is games, is it the game itself or the feeling of competition that you enjoy? If it’s solving problems, are the problems the most important part or do you just love to create solutions. You need to get down to the bottom of these questions. Business ideas to start may be lying there. If you enjoy creating solutions, you can start a consultancy business focused on bailing other business that are in trouble.
- Think of what you enjoyed doing when you were a kid. Chances are you have forgotten those things. Did you always dreamed of becoming a video game producer until someone told you to grow up? Did you planned to be a writer? You can start a business focused on any of those things.
- Think of things you like. These could be the books you read, the people you admire, the things you enjoy watching on TV, etc.
Rule #2: Remove the Thorn
Identifying a business idea that you are passionate about is half the battle. You need an idea that people are willing to pay for; otherwise, you will only make enjoying your hobbies expensive.
Like already said, the mistake by most entrepreneurs is to go for a business idea with a lot of demand. They assume that high demand will equal to lots of sales, and so, lots of profits. But this is hardly the truth. Competition is likely to be stiff in such a business, making it difficult for you to beat established competitors.
The alternative to this “high demand” quest is to find a need that’s not being fulfilled in the right way. You then need to figure out how you can make an improvement.
This will create unique value that your customers will find hard to resist. They will run to you and they will be loyal.
It also pays to ensure that this need has the potential for growth. There is no point in entering into a market that is dying. You are likely to have a failed business at some point in time.
Here is how you can find a list of needs not being fulfilled in the right way:
- Think of the things that suck in your life.
- Find the things people mostly complain about.
- Figure out how you can save people money.
- Come up with products people would want that don’t exist.
- Think of how you can save people time.
- Think of how you can make people more productive, etc.
Rule #3: Marry Business Idea and Passion
Now that you know what you are passionate about, and you also have a list of business ideas, you need to marry these two. Read through the business ideas made in Rule 2 and mark the ones that match your passions.
If you love hanging with people, go for business ideas that emphasize this. If you like repairing computers, start a business built around that.
Like a good marriage, a profitable business starts by matching your passion with the right business idea. As stories of successful entrepreneurs have shown, you need to be passionate about your business. At the same time, that business idea must have some demand.
I am sure this article has helped you to find the right business idea to start. With that, I would love to hear from you in the comments.