How to Choose What Business to Start Part 1
Where do I start?
Ok, you are considering starting a business, and now you are at the crossroad of deciding where to next?
Around the world, Millions of businesses are started every day, anything from a hairdressing salon to a computer repair business. You ask, how do you get started and what kind of business can you start at home?
What kind of business to start from home
First, you need to choose a business niche, choose something you know something you have knowledge of, which you are good at, and you enjoy.
Let’s have a look at a real-life example of how not to start.
A Case Study:
Anne (not her real name) has a great talent for flower arrangements all her friends and family say they are first class up there with the best.
Anne decides she will go for it; with all the excitement she gets finance from the bank by Mortgaging her house in a personal loan for $75,000.
Anne now has what she thinks, she needs to start, she finds a store and sign’s a lease for three years. She then realises she needs to decorate, purchase stock, get an assistant, deliveries and ongoing costs.
Anne comes to the realisation her 75K is not going to cover her startup costs, with her home mortgage to pay back and she still hasn’t opened her doors.
What went wrong
Anne made the fundamental mistake of, not doing a plan, testing the market and counting the cost. Her bank happily gave her the money as it was a personal loan, and she had the equity in her home.
The road to business recovery
Anne now at the realisation her 75K is not going to cover her startup costs, puts the brakes on and does a complete review. Anne does what she should have done at the start, get advice!
She contacts her local Business Chamber; Anne is advised to write a basic business plan that includes, Market, Cost and SWOT analysis.
Follow the steps and start slowly
Anne puts a basic plan together as advised, and she sees all the fundamental errors she initially made staring back at her.
First, she tests her market, she contacts local businesses and does flower arrangement displays for, Medical Practices, Local Government Offices, and the local Cinema Theater.
The interest generated by this testing proves to be of real value. Anne’s initial test locations now want her to do weekly flower display arrangements. Very soon, she starts getting calls from new sources wanting the same, she now is on the road for a successful business.
Do you remember Anne took out a three-year lease on a store, which she now realises as not necessary, she can work from her home at a fraction of the cost. Luckily her contract conditions enabled her to sub-let, she was able to get a tenant who was looking at expanding and the premises suited perfectly.
Anne lost a lot on her initial investment by failing to plan, the good news is she listened to the advice applied it and developed a workable plan and stuck to it. With hard work, she is now fully recovered and operating a very successful business. Anne has expanded and is specialising in doing floral arrangements for Functions, Conferences and Weddings, etc.. and has a full-time staff of 20.
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About Darren Wilkins
Darren is a semi-retired senior executive and serial entrepreneur who runs a number, of successful businesses both online and offline.
With 30+ years experience in management and as a management consultant Darren has a can-do attitude and offers real practical advice that can be used for any business no matter the size, Darren is using his time focusing on online opportunities and building better businesses.
With global experience managing and directing multimillion-dollar mega construction projects and businesses. Darren has a wealth of practical experience to share and wants to help you and your business.