Selecting the appropriate business for your style is a deeply personal process that requires consideration of your talents, strengths, education and vocational skills. The amount of money you have on hand, or can raise, also plays an important role in selecting the appropriate business. Customer demand, product or service gaps, communication development and advertising create the foundation for choosing a business that provides the best opportunity for success and longevity. With research and dedication, you increase the chances of choosing a business venture that will satisfy your desire to work as your own boss.
Instructions
1. Conduct a self-assessment. Starting a business requires a steep commitment and you do not want to spend time on a career you cannot tolerate for a lengthy period. Be honest about your strengths and weaknesses and identify a product or service that will use your skills and education. Take a career assessment, which can help you refine a list of potential opportunities. Visit the Career One Stop website for information on assessments (see Resources).
2. Create a list of potential opportunities based on your self-assessment. Write down the name of the opportunity, start-up costs and the period of time it will take to get the business going. Many businesses take months or years to return a profit, which can have a profound effect on your finances. Select one or two business ideas that will provide a profit in the time frame that suits your financial situation. Visit the Business Opportunity website to generate ideas for your business (see Resources).
3. Refine your listing by selecting one or two possibilities. Research your selected market to identify gaps in product or service delivery. For example, if you open an accounting business and notice a gap in quality service for low-income households, consider offering your services at a reduced rate.
4. Review your finances. The amount of money available to you has a significant effect on the type of business you can start. For example, if you need to purchase moderately priced or expensive equipment to perform a service, the amount of money you can raise determines the feasibility of a business opportunity. Create a list office equipment, supplies and other items. For example, if you plan to sell a product, develop a list of essential components, such as manufacturing and distribution, and their cost. Use the listing to determine the likeliness of launching, sustaining and growing the business.
5. Choose between starting a business or working with an existing one. You can select to start a business with your own resources or purchase a business or buy into a franchise. Starting with your own resources requires funding, marketing, advertising and general activities that promote growth, but you run the company and design the policies. Franchises typically come backed with existing marketing and advertising strength and additional assistance. Franchises can also cost a considerable amount of money to buy into and require that franchisees adhere to specified rules and regulations.
6. Select the type of legal structure that works best for you. How you plan to earn money plays a significant role in your decision. For example, if you plan to start small as a self-employed person, review the tax and legal implications. On the other hand, if you start as a business owner, of a corporation for example, and hire employees you must comply with several state and federal-level legal requirements. The type of business you select, the workload and the nature of the product or service also play an important role in the legal structure. For example, if you plan to seek government grants or work with charitable contributions, you must register your business as a nonprofit corporation.
7. Write a business plan for your selected opportunity. Getting it down on paper can clear up any discrepancies or concerns. Include a company summary, information about the product or service, financing, marketing and advertising, and customer demographics, at minimum. Review your business plan and if the business seems feasible, implement your start-up plan.
