Small Business Q & A: Choosing A Business That's Right For You

Q: I really want to start my own business, but I have no idea
what business would be best suited for me. I'm also eager to get
started, but I don't want to pick the wrong business just because
I'm impatient. How should I go about deciding what business
would be best for me?
-- Samuel J.

A: Before I answer your question, Samuel, I want you to reach
around and pat yourself on the back for not letting your
eagerness push you into making a wrong decision. All too often
we entrepreneurs tend to let our impatience drive us to make
decisions that we later regret. In business such haste can be
very costly, indeed.

I always compare starting a business to jumping into a pool of
freezing water. There are typically two types of entrepreneurs
who take the plunge.

The first are the "Toe Testers." These are those cautious folks
who just stick their big toe in the pool to gauge the temperature
of the water. It is for these careful entrepreneurs that the
phrase "testing the waters" was coined. Toe Testers enter the
business pool slowly, a little bit at a time. The lesson to be
learned from Toe Testers is to start slowly and don't feel like
you have to wade in too fast. Ease into the business pool
gradually to make sure it's right for you. Remember, many
entrepreneurs realize that the business world is not right for
them only after they are in it up to their necks. And that's
when the term "sink or swim" takes on a whole new meaning.

The next type of entrepreneur is the "High Diver." These are
those fearless souls who climb the ladder and dive into the
business pool head first without worrying about the depth of the
water or the dangers that lurk beneath the surface. It is for
these entrepreneurs that the phrase "damn the torpedoes, full
speed ahead" was coined. Quite often these entrepreneurial
daredevils find themselves drowning in unknown waters or end up
with their heads buried in the bottom of the pool.

Both types of entrepreneurs may find success, depending on how
well equipped they are to handle the water they are diving into.
Here are a few ideas to help better prepare you for the plunge.

** Let your experience be your guide.
Start with what you know. If you have spent twenty years working
as an accountant or you love to build wooden toy trains as a
hobby, consider how you can take that experience and turn it
into a successful business. You might also find a great business
idea right under your nose. Look around your workplace. Do you
see needs that are going unmet or can you think of a better way
of doing something? If so, you might have the seed for a
profitable business.

** Do what you love and enjoy what you do.
I can't emphasize this enough. Many people start a business for
the wrong reason: to get rich. While it is true that many
millionaires in this country made their fortunes from their own
business ventures, that should not be your sole motivation for
starting a business. If you don't enjoy what you do, you will
not be successful, at least not from a mental point of view.
Sure, the monetary rewards can be tremendous, but the mental
anguish of working in a business you don't enjoy is a high price
to pay. I talk to entrepreneurs all the time who are running
successful businesses, but are so unhappy as a result that they
literally make themselves sick. If you don't enjoy what you do
the business will become a chore, not a joy.

** Don't reinvent the wheel, just make it better.
Many first time entrepreneurs assume that they have to come up
with a new business idea to be successful. That simply is not
true. Most successful businesses are born not of innovation,
but of necessity. Instead of trying to come up with an idea
that changes the world, take a look at the world around you and
see where there might be a void that needs filling or a business
concept that needs improvement.

Many successful businesses have been built by taking a traditional
business and making it better. Domino's Pizza was certainly not
the first to offer home delivery of pizza, but they were the first
to guarantee it would be delivered piping hot to your door in 30
minutes or less. Amazon.com was not the first company to sell
books, but they were one of the first that would let you buy books
from the comfort of your own home while sitting in your underwear.

** Focus on a niche.
Many businesses have gone broke trying to be all things to all
people. The ability to offer a gazillion products under one roof
is all well and good for Wal-Mart, but not for most new small
businesses. Try to identify a niche that you would enjoy working
in and think about starting a business therein. If you love to
work outdoors, consider starting a landscaping business. If you
enjoy working with numbers, think about becoming an accountant or
CPA. When's the last time you had your gardener do your taxes?
You get the idea. Focus on a niche and become an expert in
your field.

** A franchise might be an option.
Many new entrepreneurs consider buying a franchise operation
instead of starting a business from scratch. Franchises are a
good way to jumpstart the process because they have already done
much of the hard work for you. They have proven the business
model, established guidelines for running the business, spent
millions of dollars on establishing the brand, etc. Buying a
franchise is typically a very expensive and involved process
that is beyond the scope of this article. The best thumbnail of
advice I can give you is to thoroughly investigate the franchisor
and the opportunity, use your own attorney to do the deal, and
read the fine print in the franchise agreement.

** It's hard to swim in a crowded pool.
If the business pool is already filled with other companies doing
the same thing you want do, chances are you will fail in the face
of established competition. To succeed in such a crowded pool you
will have to do something to stand out from the crowd (and I don't
mean greeting customers while wearing a bright red Speedo). If
you can't quickly and easily differentiate yourself from a large
group of competitors, you're better off choosing another business.

** Above all, take your time.
Whatever business you choose to start, I encourage you to take
the time required to make an informed, intelligent decision.
Think about starting part time while you still have your current
job (and income) to fall back on. Talk to friends and associates
who use the product or service you will provide to see if they
would consider become paying customers.

Remember, in business you can end up swimming in success or
sinking in failure. The key to your success might just lie
in the sensitivity of your big toe.

Here's to your success.

Tim Knox
tim@dropshipwholesale.net
For information on starting your own online or eBay business,
visit http://www.dropshipwholesale.net