6 Steps To Be Your Own Boss-Choose The Right Business

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Jeff Bezos did not start Amazon.com because he was in love with books. He started it because he discovered that Internet usage in the early 1990s was growing at a whopping 2,300 percent a year. Armed with that valuable insight, he analyzed the marketplace and the opportunity, and concluded that the best way to tap the commercial power of the Net would be through book sales. Because it was not about the books, but rather the opportunity, Bezos is the prototypical second category entrepreneur.

If you are looking for a business to start, the number one thing to discover is whether that business can sell something people need

There is no shortage of people who start their own business because, simply put, they want to be their own boss; that is as great a reason as any. cash4wealth

The chance to make your own decisions, rise or fall by your own ingenuity and hard work, the opportunity to make more money, and the freedom that comes with being a small businessperson are some of the great joys in life. It is no wonder that many people long to start their own business. When done right, it is special.

In 1986, Roy and Bertrand Sosa emigrated to the United States from Mexico.

When they got here, they quickly discovered that they needed a checking account

and credit card, yet credit cards were difficult for new immigrants to obtain. Their

firsthand market analysis convinced them that there was a huge market waiting

to be tapped, and so the brothers started NetSpend, a small business designed

to offer traditional financial services to recent immigrants and people with poor

credit histories. Using prepaid phone cards as their model, Roy and Bertrand

copied and tweaked that model to create a business plan for prepaid debit cards.

Then they had their big break. The brothers Sosa discovered the Small

Business Administration’s (SBA’s) Small Business Investment Companies

(SBIC) program. SBICs guarantee the investment made by investors (called

venture capitalists, or VCs.) Because the investment is SBA guaranteed, SBIC

VCs are induced to invest in projects they might otherwise say no to, like Net-

Spend. Armed with SBIC VC money, in five years NetSpend went from 0 to

400,000 accounts, and growing. When asked what advice they had for other

would-be entrepreneurs, the brothers offered three rules:

1. Figure what pain or need the customer has that you can solve.

2. Create strong, win-win partnerships and relationships.

3. Start with baby steps, but think big.

 

Choosing The Right Business

The question is what would be the best sort of business to start? If you want to create a great business, a successful business, then here is a critical tip: Find a business that fulfills a market need. That sentence should become your mantra. The best businesses find a need, a niche, and fill it. Do that and almost everything else will fall into place. If you are looking for a business to start, the number one thing to discover is whether that business can sell something people need. “Figure what pain or need the customer has that you can solve.” There are several ways to come to the correct decision and find that great business.

1. Research, Research, Research, and Then Do Some More Research.

Your first step is to analyze both the marketplace and the opportunities available. Look around, find some businesses doing something that looks good to you, and learn about those businesses. How hard are they to create? How much money do they make? How much money would you need to start a similar business? The options are many and there is no shortage of associations and web sites ready to help you find the right business to start. Among the places you should look are:

www.SBA.gov/starting_business/

www.Startupjournal.com/

www.uschamber.com/sb/business/startup.asp

www.FranchiseHandbook.com

The Google search engine is another great place you can do more search.

Look for a business that catches your eye, that seems to have great potential for growth, and that is interesting.

2. Product or Service? When it comes down to it, your business will provide people either with a product or a service. Service businesses tend to be less expensive to start as there is no inventory to buy. Whereas product businesses mark up prices on scores of products and profit on the difference, service businesses, like those of lawyers, doctors, and consultants, sell time and expertise. An initial decision then is which of these best suits your temperament, skills, and goals.

3. Analyze Your Skills and Experience. Suppose you have spent your career doing marketing for major corporations. You then have invaluable skills that should be tapped when deciding what business is right for you. Even if it is not a marketing business, you would be foolhardy not to choose a business that does not somehow tap into your well of knowledge and skill. Now, it may be that you are tired of doing whatever it is you have been doing and that in fact is why you want to start your own business. Understandable, for sure. Just be open to the option of finding a business that gives you a leg up on the competition because of your background.

4. Consider Your Options. You could create a business from scratch. You could buy an existing business. You could start a franchise. You could create a home-based business. The possibilities are many. The important thing is to (1) realize that there are in fact a variety of options when you are choosing a business, and to (2) learn about the pros and cons of each (read those chapters, research the industry, speak with people in those sorts of businesses).

5. Narrow Your Choices. Once you have analyzed the market, the opportunities available, your skills and experience, and your goals, you should be able to narrow your choice down to a few sorts of business. The next step may be the most important. You must—repeat, must—go out and find some people who own and run these sorts of businesses.

Business selection do’s and don’ts:

• Do be patient. A good selection process takes time and requires knowledge

about the industry, marketplace, and competition.

• Do look for opportunity. As hockey great Wayne Gretzky once said, “Go to

where the puck is going, not where it is.”

• Don’t pick a business that is too challenging. You will be challenged enough.

• Don’t pick a business that cannot compete. Superstores like Costco, Sam’s

Club, Target, and Wal-Mart will beat you on price. Find a business, a niche,

where you will have an advantage over the competition.

Again, theory and books are great, but nothing beats speaking with someone who lives that business every day.

6. Start Your Engines. Whether you want to start a business because you want to start a business or because you want to spend your time surrounded by your passion, the important thing is to do your homework and find a niche that fills a market need. Do that, and you are well on your way.

If you need consultancy or help with your business or you desire to start one do not hesitate to Contact us. Why not share this post if it has benefited you.

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