Are you thinking about starting a business and don’t know which one to start? You can look at the latest business trends and fastest growing industries, but there are some easier, simpler approaches.
Start What You Know
Your chance of success skyrockets when you get into a business that you are already familiar with. For example, if you are a psychologist at a hospital, then start your own psychology practice. A restaurant manager should start their own restaurant.
The reasons are simple. There is not much of a learning curve to deliver your services or products you are offering. And if you have management experience, then you already know how to manage people and run the operations of the business.
The only drawback is that you may underestimate the amount of administration and start up aspects to get the business up and running. For a healthcare practice, that can be all items related to billing and insurance. For a restaurant, you have to spend time on the build-out phase before the restaurant opens. However, this is generally the case for virtually all businesses.
Licensing or Barrier to Entry
Many businesses that require a license to operate usually have a higher chance of success. The reason for this is that the licenses issued are usually limited by a governing agency and the criteria to become licensed, such as education, time and/or experience, create a barrier to entry. The easier the license is to obtain then usually there is more competition. The harder it is to obtain, the less competition.
Simplicity
Unless you have specialized knowledge, the best business to start is one that is simple to operate. An excellent gauge to measure simplicity is to know how long it takes to deliver the service or make a product. If using a psychologist as an example, the psychologist delivers their service in under an hour, plus the time to update notes. A more complex business is a home builder, which can take months or years to complete a home. The less time it takes, the less risk of unknowns, such as supply shortages or cost overruns.
Focus and Resources
Lastly, the best business to start is one that you can focus your time and resources on. If you do not have an ample amount of time or resources for the business to be successful or to get you through the cash draining phase, then do not start the business or postpone for some time until you do. It can be painful to start a business that you know can be successful, only to realize you do not have enough money to keep it going.
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