Finding the right startup business is one of the most popular small business subjects today. Everyone wants in on what’s hot. Riding the wave of a hot market is much easier than spending all your time and resources educating a market without a real need. Finding the hot business opportunity is the first step. Once you find a hot idea you need to evaluate whether the business makes sense not only in the market but also for you personally. Keep in mind these five factors in determining the right business startup for you:
Skills or Hills: Using your strengths can help you overcome any business startup stall. If the business requires you to go way outside your comfort zone, it might be better to find something that closely mirrors your skills. Ten years of retail experience offers much more chance of success than an opportunity based on telemarketing skills, where you have zero experience.
Passion Plays: There is a common saying “do what you love and the money will follow.” However, passion is only part of equation, do what you love, and the money may not follow. If your passion is refrigerators and the worlds in an ice age your market has no need. It’s vital to put your passions and motivations aside and look at the hard realities of the market.
Bring it Home: A hot business startup in one market can transfer to other markets. When I began my small business journey over eighteen years ago, I worked for FitnessLand, founded by Harv T. Ecker, author of bestseller, Secrets of the Millionaire Mind. Harv was visiting Los Angeles one day and noticed the emergence of exercise equipment stores. He brought the concept home and five years later sold the business to Heinz to pocket more than a million dollars.
Know Your Cash: No matter how hot a business opportunity may be, if it exceeds your startup and seed money, it’s not a great business for you. Access the cost of starting your business. Sure, you can raise money but the odds of getting venture capital are high. Unless you created the next Facebook, start a business within the reach your financial abilities.
Look Long-term: A hot business opportunity is based on a long-term trend not a short-lived fad. Look at the business overall. Is the industry growing consistently year after year? Can you get in at an early stage or is the market already saturated with competitors? The challenge is to look beyond the hype of companies and media and see the trends from the fads.
Starting a business is no easy endeavor. Take your time to carefully find the right business for you.