Entrepreneurs typically have a million business ideas running through their head at any given time. What is a system to sort the winners from the losers?
First, find a niche that you want to work in. The initial question should surround what problem you want your business to solve and what clients or customers that you want to solve that problem for. It almost seems like it is stating the obvious to say look for an underserved niche, e.g. one where there is not a lot of competition. Starting any business is hard but starting a business and doing so in a competitive environment is even harder.
Second, do what you love. There is an old adage that “if you do what you love, you will never work a day in your life”. If you think about it, that makes a lot of sense. After all, you are choosing the business to start, why not chose what you love?
Finally, build a solid business model for your business. Every business will have different capital investment requirements, sales and profit (and loss) potential and cash flow. While you should be doing what you love, the business that you choose also should make you money to allow you to meet your own financial requirements. A “business” that does not make money is a hobby and not a business.
Hopefully applying these three concepts will point you in the direction of the right business idea and away from the wrong one. One final thought. . . one of the best parts about being a small business owner is your ability to pivot in a new direction and try something else if the new business does not meet your expectations.
For more advice and tips, stay tuned to my blog! I am always trying to share my law and entrepreneurial expertise to improve small businesses in all stages of their business life.