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No,
single step is more important when starting a home business than selecting
the "right" business. Equal in importance to the decision to start a business
is selecting the "right business". You should make this decision only after
carefully looking at many factors. Selecting a business to start will come
easily to some. To others it will mean investigating many opportunities.
Even after investigating the opportunities and reviewing your notes, you
will ask yourself many times, "Did I select the right business?" "Can I
make money with the business I selected?" "Am I doing the right thing?"You
will ask yourself these and other questions many times before and after
you start your business. Below are some guidelines to help you in this
process.
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The first thing you should do
is START A BUSINESS YOU LIKE. Never start a business solely because you
think or have heard that it will make a lot of money. I always tell my
clients that selecting a business they like will determine their success.
If you start a business you like, the chances of your succeeding are much
greater.
Next you should review your
current job, hobbies and your likes and dislikes. By reviewing your current
job, there is a possibility that you can develop a business from your on
the job experiences. For instance, if you are an accountant for a large
company, you could consider starting an accounting bookkeeping services.
Many people have started a business as a resultof their experiences from
their current and past jobs. A hobby is also a good starting point when
considering a business to start. If you have a hobby, chances are
you like it and could possibility develop it into a part-time or full-time
business. If your hobby is photography you could possibility develop it
into a business. Once again, the main thing to remember is to start something
you like.
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Three, do some homework. Start
by reading some books and magazines. There are many books and magazines
in bookstores that list many businesses to start. From these you should
make a list of the businesses you think you would like to start and review
those businesses as you go through the process of selecting the right business.
Also check the newspapers of major cities. If you live on the East coast
read the newspapers from the West coast or the Mid West or South. Many
times a business started in one location has not yet been started in the
area you live. Reading the major newspapers, often can lead you to a successful
business.
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Four, consider any special skills
that the business you select will require. The best thing to do is start
a business that taps existing skills, but it is not unheard for an individual
to start a business that requires going back to school. Keep in mind that
any special training could delay starting a business.
Five, ask yourself, "What are
your income needs and how much time are you going to spend on the business?"
It is critical when selecting a business to know the potential income of
that business. Due to their nature some businesses generate a limited income.
Whether a business will be operated full-time or part-time could obviously
determine income potential in some businesses. When selecting your business
keep in mind your income needs. Also remember that few businesses will
generate a profit the first few weeks or months and sometimes it can even
be years. All of this information must be factored into your decision to
start a business.
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Six, determine any capital investment
requirements. All businesses, large or small, need money to start and grow.
Use your business plan and determine your money requirements. If you are
buying a business opportunity, remember to set aside money to market your
business. Some people spend most of the investment dollars buying a business
opportunity, obtaining necessary training courses to startup a business
or purchasing required equipment, only to realize later that there is no
money left to help promote that new business.
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The equipment needs could also
determine the type of business you select. If a sizable investment is needed
for the purchase of special equipment and your funds are limited, this
could possibly prevent you from starting that particular business or at
the very least delay your business start-up. In addition, equipment space
requirements could also prevent your business start-up.
Seven, assess the demand for
your product or service. A guiding principal for everyone starting a
business is to start a business that taps an existing demand for your product
or service. This is not say that a new unique item will not sell, but it
is to say that the odds are against you trying to take a new product or
service to market. Yes, we have all heard of a start-up company developing
a new product and making millions, but this is the exception and not the
rule. Your chances are better at winning the lottery than seeing your new
product succeed and make millions. I think that you have to be both
an optimist but a realist.
As you can see. selecting
the right home business is not an easy decision. The above factors are
only some of the things to consider in starting that business. There are
many more. The main thing to remember is to do your homework and be realistic.
Good luck!
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