CHOOSING THE RIGHT BUSINESS IDEA

Many would be entrepreneurs are often face with one of two problems-they either have multiple
business ideas and find it difficult to decide which one to get into or have a passionate desire to own a
business but have no idea which one they should try.

Picking a business to operate is an important decision to make, and one that you should carefully
planned. A careful consideration of the choice can save you time and money in the future which is very
important to any entrepreneur, greenhorn or experienced.

In this article I’ll be discussing:

 How to tell a good idea from a bad one

 mistakes to avoid

 A step- by- step guide on how to find the right business idea

 And so much more.

How to tell a good idea from a bad one

To arrive at a good idea, you need to ask yourself some pertinent questions:

1. Does the business idea address a problem?

2. What is the level of competition would you face?
3. Will you be able to make money doing it?

To answer these questions you would need to survey your competitors, prices, start-up costs and
whether there exists a market for the product or service you would be marketing.

What If I Have No Business Ideas?

Many times one knows what they wouldn’t want in a business but are at a loss what business idea
would be without these characteristics. For example

 You may not want a full-time job

 You may not want to stay away from your children

 You may not like a business that would strain you physically or mentally

 Or, maybe you would love to be your own boss but you don’t know the first thing about how to
go about it
Know what you like and dislike

If you don’t like waking up early it would be unwise to start a baking business. However, if baking is
something that you really fancy doing, you would have to consider whether the enjoyment you would
get from baking will be worth the sacrifice.

Remember, too, being your own boss will require your total devotioin at all times for the firet few years
so choose something you’ll love doing.

Reach out to your family and friends

Seek the opinion of your friends and family. They might point out some skills and strengths that you
didn’t know you have.

What if you can’t decide between two or three ideas?

How do you settle on the idea with greatest potential? It might be more profitable to commit to one
business rather than juggle between projects. It’s hard enough to run one business, let alone two or
three. It’s not uncommon for one to run more than one business but you would need to weigh this
against the benefits you would get if you concentrated on one business.

Mistakes to Avoid

Here are a couple of mistakes you need to avoid in order to increase your chances of succeeding in your
business.

1. Emphasizing on profits

Although money is important especially for a start-up, it should not be your only focus. An overemphasis
on money and profits might affect your product or service quality resulting in difficulty in getting new
customers. You ought to strike a balance between profitability and quality so that you can attract more
customers through repeat visits.

2. Focusing Entirely on Passion

Similar to those being focused mostly on money, there’s an opposite approach that can also be
problematic–that’s being too focused on passion.

Being passionate about your business is extremely important. It’s most likely the reason that you started
your business; you wanted to share what you love.Passion is great to have but you also have to keep a
business mindset as well. Products and services have to be priced so that the business is profitable.
Sometimes, business owners can be too excited and willing to share that they ultimately give away all
their profits.
Remember: Income – Expenses = Profit

3. Focusing Too Much on Other People’s Results vs. Their Own Skills

When you focus your energy on others’ success versus your own business, you can lose momentum and
confidence in yourself. Your competitor might have had a family friend in the industry or simply had a
very lucky break. Either way their journey isn’t yours, and your own business should be your main focus.

Focus on building and perfecting your own skills to make your business stand out. By spending your time
thinking about why your competitors are doing so well doesn’t help you, but thinking about ways you
can improve your own business does.

There are times when comparing your business to a competitor can be beneficial, but you always have
to maintain your own business identity.

4. Thinking the Idea Won’t Need Marketing

You’ve probably heard people say that a great idea will sell itself. And that can be true but people still
need to hear and know about your business in order to want to buy your products–that’s where
marketing comes in.

Nowadays there are so many options when it comes to marketing your business. You can choose to run
Instagram or Facebook Ads, have social media pages, a website, and much more.

Many people rely on the internet to help solve their problems, so you want your business to be the first
one that shows up in their searches.

5. Taking on Too Much

It’s not uncommon for new entrepreneurs to take on too much in the beginning in a variety of ways.

Sometimes, it’s having too large of a product line where you end up with stock sitting waiting to sell. The
cost to keep a large variety of products in stock at all times can also be expensive, so that’s something
else to consider.

Other times a business owner can take on too much responsibility. Imagine starting a restaurant, with
delivery service, a food truck, and catering service all at once! It could be overwhelming, and without
help, you could be stretched too thin to ensure that all aspects of the business were doing well.

What to do To Find the Right Business Idea Step-by-Step

If you’re stuck trying to find the right business idea, here is what I recommend that you do to get out of
the rut…

1. Brainstorm

 Think about the customer that you want to have

  What problem are you solving for them?

 Where will they be looking to have this problem solved?

 How will they find your solution?

Map out the journey that you want your ideal customer to take to find your business and make a
purchase.

2. Research

 How competitive is the market?

 Who are your competitors?

 Is there a market for your product?

3. Get Feedback

Don’t be afraid to ask friends and family for feedback on your business idea. They might be able to point
out a strength or weakness that you may have overlooked that could either aid or hinder your business
idea.

4. Do a Life Plan

Starting a business will undoubtedly change your life in many big ways. It can even change your legacy
long term. Is this business something that you want people to remember about you?

Either way, businesses take a lot of time and effort, so it’s important to think about whether it fits into
your overall lifeplan. If you haven’t done a life plan before, check out the Startup Entrepreneur’s Toolkit
(which includes a life plan template).

5. Do a Business Plan

An important first step for any successful business is to set goals that help guide your actions.

 When do you want to launch?

 What services will you offer?

 How much will you charge?

 How much product do you need to launch?

 and More

Get started with our free business planner, and begin getting a clearer picture of your goals.

A Criteria for Choosing the Right Business Idea

Once you’ve narrowed down to a few business ideas, then you want to look at these things and decide
which works best for your situation…

1. Startup Costs

The cost of starting up any business can vary greatly depending on the owners preference. There are
endless options to get products and services for your business which can include but aren’t limited to
dropshipping, becoming an affiliate in a company, making your own product, or hiring others.

Each business choice you make is going to have its own costs and benefits. You’ll have to weigh out your
best options based on your budget.

Money is a big factor in starting a business. You’re probably going to have a difficult time starting a
goldsmithing business with $500 because it’s not feasible to get all the equipment and materials
required to start up for that price, let alone all the other costs that come with running a business.

Some businesses simply require more funds to start up so be realistic with your choice.

2. Skills

Some businesses are more risky than others and require more expertise. For example, running a hospital
comes along with lots of compliance and rules.

If you wanted to start a hospital or even a medical practice, you have to know things about the medical
field (including the trade, the rules and regulations, and more).

When you don’t have the skills for the business you want to start, it’s best to be self-aware about that,
and to decide whether to go forward with the business. If you decide you still want to give the business
a shot, then you’ll want to calculate the cost of accumulating the skill, the experience, and the
mentorship you might need to be successful in the field, and decide if it’s feasible for you.

3. Amount of Time

How much time is required to run your business and how much time are you realistically able to spend.
Some businesses require more time than others to be successful so it’s important to take that into
account.

4. Passion

If you’re passionate about your business idea and what it has to offer, customers will gravitate towards
it. People will notice your enthusiasm, and positively.

Plus who doesn’t want to do what they enjoy for a living? It’s most likely why you want to be an
entrepreneur.

5. Willingness to Prioritize
Is this business idea worth it to you? You’ll have to make many sacrifices and prioritize business tasks
over personal pleasure at times. Make sure that the rewards outweigh the sacrifices that you’ll have to
make over time.

6. Analyzing your Network

Networking can be a form of currency itself. Think about who you know and don’t be afraid to ask
around for connections. Friends, family, and even coworkers are usually quite eager to help someone
they know with a new business adventure.

Having well known contacts in the industry that you choose to work in can be invaluable for a new
business. It can help with finding better pricing on materials, or even a collaboration in the future.

Conclusion

Choosing a business idea can be a big decision that impacts you the rest of your life. I hope that I was
able to help explain the steps needed if you were struggling to figure out how to choose the right
business for you.