What Kind of Business Should I Start? 6 Questions to Help Decide

You know you want to take the leap and become your own boss, but – into what? Making a business idea into a successful business is more than luck, and addressing your strengths, goals, and limitations is a critical piece of the puzzle. Unpacking the following questions can help you answer the biggest question: What kind of business should I start?

How to Know What Business to Start

If you’re considering starting a business, the possibilities can be overwhelming. Real estate, pet sitting, eCommerce shops, consulting businesses, coffee shops, landscaping businesses, event planning; whatever your skill set, you can find a business opportunity that aligns.

As you weigh out your entrepreneurship options, it’s important to take both subjective and objective factors into account. From the basics (What do you know how to do? What do you like?) to the more complex (Is there a demand for your idea? Do you have the working capital to support it?), there is more to your success than a great business idea. The following can help you begin determining what the right business opportunity looks like for you.

1. What am I passionate about?

Being a new business owner can mean early mornings and late nights, particularly in the early years. To get over those initial hurdles, you must pursue a type of business that you’re genuinely interested in. What gets you out of bed in the morning? What fascinates you? Your primary motivation at this point should not be to make money, as most new businesses take two to three years to become profitable.

2. What experience do I have?

Of course, passion for nuclear physics can only take you so far; experience matters, too! Consider your education, experience, and skill sets and how those can play into your work as an entrepreneur.

3. What resources and time do I have available?

As you start to narrow in on small business ideas, you’ll also want to look at your current availability. Will you dive into your own business full-time or wade in part-time as a side hustle for a while? From small businesses you can run out of your own home, like dropshipping and dog walking, to online businesses like freelance writing, bookkeeping, and graphic design, there are many ways to dip your toes into the world of entrepreneurship. Knowing how much risk you can take on, what resources you can put forward, and how much time you can put in can help you start working on a realistic business plan.

4. What lifestyle do I want?

You’ll also want to consider what you want out of the business long-term. Do you enjoy a hands-on approach, or are you looking to generate more passive income eventually? Finding an idea and business model that makes sense for your goals is crucial to being content with your decision.

5. Do I have a way to test my idea?

It’s easy to have a great idea on paper, but before you take the leap, ensure that your vision is viable. You can start to determine if your business idea is in demand by surveying friends and family and looking to the internet. Is there a gap in the market for the solution you’re proposing? Is it feasible for you to prove your idea fairly quickly?

6. How much capital can I access?

82% of businesses that fail do so because of cash flow problems. Not only do you need to find a way to cover the startup costs, but you’ll need working capital to keep up with the day-to-day as you work towards a profitable business model. There are several different funding options you can explore.

Starting a small business is no small feat. Depending on your vision and circumstances, you may want to consider whether purchasing an existing business is right for you. By buying a business, you can bypass some of the challenges of a startup, increase the potential that you’ll be able to qualify for business loans, tap into an existing customer base, social media presence, brand, and more! If you’re considering buying a business in the new year, the professionals at Sunbelt Business Brokers can help. With locations across the United States, we can help you find the right opportunity for you in any market. Find a Sunbelt near you to get started!