Once you have made the big decision to have your own business, you will inevitably face the vital question. what kind of business should I start? When seeking an answer, make sure you don’t start out with a list of business ideas from someone else to just pick one arbitrarily. Binding yourself to a fixed list means you will mold your plans in a preset manner, and not based on your strengths.
In this saturated world of entrepreneurship, success requires doing that which maximizes your skills, resources, and insights.
What Kind of Business You Should Start?
Does that mean you can’t dare to venture out of a certain territory bordered by your current assets?
Absolutely not! Working on your strengths doesn’t mean you shy away from new ideas or challenges. It simply helps you to narrow down your options. So that you don’t stay stuck in the planning phase for too long and can channel all that enthusiasm into the execution, i.e. building and growing your business.
Taking your business off the ground will bring a lot of challenges of its own. If your venture demands you to develop new skills, the journey might turn into an exhausting one. Thus, more than anything else, you need to have clarity on where you are heading when you consider what kind of business you should start. Working around your existing resources and experiences to identify the niche. Where your efforts are most likely to succeed is the first step towards reducing the chances of failure in your entrepreneurship journey.
So what should be the first line of thought when considering what kind of business to start?
The perfect business idea comes from market insights to find the right pain points or demand-supply gap. Which is aligned to the resources and skills you have access to. Then you can devote yourself to solve that problem or meet the shortage in supply. New entrepreneurs often mistakenly become focused on hypes and trends or jump into an oversaturated market without first identifying the particular problem they want to solve or the niche audience ideal for them.
Don’t fall into that trap! Look around you to see what you or others are ready to pay for, in order to avoid the pain of going through it. Since the problem exists, others have definitely attempted or at least thought of ways to solve it. Ask yourself – why couldn’t they? The answer will be your key to finding what kind of business you should start.
Answer to the big question: What kind of business should you start?
There are three possible reasons why an existing pain point or problem hasn’t got a solution yet. The first is impossibility or incapacity by anyone to solve the problem. Unless you are living in a remote secluded village where people are totally oblivious to the wondrous things. Made possible in the modern world of communications and technology. It’s unlikely that you will be able to solve a problem that no one else could. If you are in that situation where only you are capable of solving the problem, stop reading and start reaching out to your target audience already!
Provided the first reason is out of consideration, let’s move on to the next one. Everyone else capable of solving is already solving bigger issues and cannot focus feasibly on the smaller or lower tier. Here is a golden chance for lots of businesses to start and run sustainably. But the catch here is that your growth will be extremely slow albeit steady.
If you plan to scale or aim for higher profits, your resources will need to expand and at a certain point. Your overheads and logistical expenses will not allow you to serve the original audience you started out with. So you will eventually be thrown into the sea of competitors. Many of whom have built a very strong foundation over the years. Their economies of scale are hard to match by a new player with a fraction of the market share.
Survival here will be like a tiny poodle trying to take a piece from a German Shepherd’s meal. If you are comfortable being the leader of your own small team. Then you can exploit the big players’ apathy and start building your own customer base to sustain a modest but decent business.
The third reason why an existing problem is yet to be solved is that those who are capable of solving do not have the insights to understand how big the problem is. Here is your chance to exploit your in-depth understanding or meaningful experiences to make a mark in history. And be the next big thing in wall street, silicon valley, or at least your local economy.
The good insight that will get you started with your successful business doesn’t come easy though. If your understanding of a particular problem is merely based on information available on the internet. You do not have much of a good insight perhaps. If you can specifically identify that a certain problem is bigger and possible to easily solutions. Then most people and even experts perceive it to be, that is when your insight is worth forming the basis of what kind of business you should start.
The strong indicator that you have a good insight is that people are intuitively opposed to your insight. If everyone agrees with what you have to say, don’t waste time dwelling on it. Keep your eyes and ears open for actual insights which typically just happen along the way as you move through life. Even though there may be some disappointments initially, don’t give up; patiently build on your passions and experiences to pave the way.
If one of the three reasons for an unresolved problem has struck a chord. Then you are ready to explore and find out what kind of business you should start. If not, then expose yourself more to passions, experiences, and people.
In time, you will definitely have that “eureka!” moment. Meanwhile, just keep working hard deepening your knowledge and improving skills to identify how businesses find and solve problems, and what remains to be solved yet.