What business to start Part 2?
How to Choose a Business
You might be thinking what business to start, and be wondering, how to choose a business, I don’t know where to start?
As we said in the previous article, 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.
Many people turn their hobby into a business, as in Part one of this article What Business to Start Part 1 Anne turned her flower arranging passion into,…….eventually a successful business.
It does not have to be a hobby, write a list of some things you enjoy a subject you are knowledgeable, narrow that list down to your favorite choice.
For example maybe you enjoy going to the Cinema, and follow a particular genre, you could for example set up a club for like minded people. When a new movie comes out, you could organise movie views. Or if you like shopping, food or art organise shopping tours, restaurant reviews, art tours or sporting events and have people subscribe to a newsletter, all for a fee, of course.
You could try setting up an online business there are many opportunities such as affiliate marketing where you sell or advertise products for a fee. If you are interested in starting online read the article on starting your own blogging business
In Part one we looked at a real life Case Study Anne and her Floral Creations, you may ask, how to do it right?
Determine Your Target Market
First rule, determine who your target market is, for your particular product or service
– how big is the market
– what are the demographics i.e. age/gender/location
Now you have defined your market how do you plan to reach them?
There are many forms of marketing, from direct contact i.e. your circle of friends, family work colleagues to telephone, internet newspapers and television ad’s or simple flyers as letterbox drops.
How you choose to advertise to your market can only be determined by you and often will be constrained by your budget
Read our Pages Starting a Business and review the ten steps to starting a business also read Run a Succesful Business for some great tips.
Second Rule, with any business, you are in it for one reason only; that reason is to make money.
How much money do you need to sustain your lifestyle, remembering starting a business is a long and slow process, you will need to make some sacrifices.
Write a basic budget listing the amount of return you need to live how much do you need for operating your business, advertising, stock, power and internet/phone and transport. Your business will need to earn enough to cover these costs.
Third Rule, SWOT analysis. Don’t be frightened it’s not technical, SWOT is an acronym for;
Do the same for your weaknesses, don’t be afraid and be honest with yourself.
Now look at the opportunities you have in your chosen niche, think about this carefully don’t rush it, you might be surprised at the different opportunities that arise.
Threats, this can be very broad and can range from your competition to government changes
As your business is getting established, you will find you have competition, in your threats, list your competitors, now is the time to develop a competitive edge.
Competition is good there in no need to fear your competitors they should fear you. Don’t try to copy your competitor be different, this will help you stand out and be unique. Don’t focus on what your competitor is doing focus on your own business, changes made by the opposition are likely made to enable them to catch up with you.
These are the steps Anne should have followed when she first started out; and are the steps she was advised to take by her local Business Chamber.
Now you have a basic business plan as you progress in setting up and establishing your business building a strong and workable business plan is critical. You will need to spend time developing your plan in more detail; I suggest you use a professional business planning tool and recommend LivePlan. Using a professional business planning tool will ensure your plan has the correct content and will give you prompts and tips to keep you on the track to success.
Fourth Rule, Commitment, commitment is the key to the continued success of your business, are you committed?
The world is full of opportunities, and you too can find success. Stick with it keep working and with time the dividends will start to pay and you can be on your road to financial freedom.
I wish you all the success in your business and if you need advice send an email with your question to email@example.com
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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.