Some entrepreneurs know what type of business they want to start right away. Others might need to do some soul-searching. Finding the right answer to that question that you keep asking yourself is “What type of business should I start?” It is well worth your time.
It is a big decision to decide what type of business you want to start. Therefore, it makes sense to look at all options and compare different options. Don’t let a one-size-fits-all quiz tell you which type of business to start. Your personal experience and preferences will determine the type of business you open.
We have compiled a guide that reflects the experiences of successful entrepreneurs. It consists of six steps.
These are some questions you should ask yourself when deciding which type of business to start.
Which type of business should you open? These questions will help you decide what type of business to start.
We’ve compiled six key questions based on the experiences of successful entrepreneurs in deciding what type of business to start. These questions will help you answer the ultimate question about what type of business to start. These six questions will help you to determine the right business for you based on your personal goals and experience.
1. Which experience do you have?
Ashley Hill, the founder of College Prep Ready and CEO, said that she started the company because she was able to finance her college dreams with personal success.
Her research and experience led her to discover that there was a market waiting for the knowledge she could offer. Hill was able to understand the struggles of parents and students when it comes to navigating the financial aid and college application process.
2. What are my passions?
We were also given common advice by entrepreneurs: Find your passion and follow it. Varieties founder Nick Ehret is passionate about tea. He started Varieties to curate specialty teas for his monthly subscription boxes. It was a very successful venture.
He is a tea lover and knew that he could turn his passion into a business. When it comes to starting a business, his advice is to choose something that you are passionate about. You will be spending hours working on it every day.
Spark Rental CEO Brian Davis subscribes to the Japanese concept of ikigai. It is a Japanese concept that means “reason to be.”
3. Which problem can I solve
Although we all know necessity is the mother invention, applying that knowledge in the business world has not always been the right step. Entrepreneurs who can convert that need into a business plan will be able to quickly become successful business owners. Consumers will tell you that there are many problems in every industry.
For example, take Big Barker Dog Beds. In 2016, this company earned $4.75million in revenue. Eric Shannon, the founder, and CEO of Big Barker recognized a major problem in the dog bed market. Big Barker was founded because large dog owners faced a major problem. Because their beds weren’t strong enough to support a large dog, they had to be replaced at least once a year.
4. Which lifestyle do you prefer?
You may have a business goal that includes revenues in the millions of employees in the thousands. That’s fine. But what is most important? Choosing a business model that allows you to enjoy the best of both work and life.
Antonella Pisani, VP of global eCommerce for Fossil, was also a leader at JCPenney Guitar Center and ProFlowers. Her primary interests were photography and travel. Pisani realized that she wanted mobility to pursue her interests so she needed a flexible model for business that didn’t require inventory or space.
5. What amount of capital can I access?
Lean startups weren’t just a trendy trend. The idea grew out of one enduring truth about starting your own business: people don’t want their life savings to be invested in a business that isn’t yet proven or profitable.
Robert Lomax is a great example of this fact. He founded RSL Educational, an educational services company, based on needs he identified in his teaching job. His teaching experience not only helped him to see the gaps in the market for educational books but also allowed him to continue his job and create new products.