1. What is your level of preparedness?
The first key to finding the best business to start is you; and the reason is because building a successful business starts with you, the entrepreneur. Are you in the right mindset? Do you have what it takes to build a successful business?
I listed the entrepreneurial mindset here because it the fundamental key to starting, building and growing a business. The state of your mindset will determine how far you will go in the entrepreneurial process of building a business. Choosing the best business to start begins with you answering the following personal questions:
What is your risk bearing capacity?
Are you prepared to face business challenges?
Are you prepared to handle business failures?
What’s you perception towards making mistakes in business and life?
These are the type of questions you need to ask yourself before even deciding what business to start. These questions will reveal your mental preparedness for the entrepreneurial journey at hand.
2. How much Capital do you have?
The start-up capital you have access to, is another factor that will determine the best business for you to start. The best business opportunity for an entrepreneur with access to a $1,000 start-up capital will be quite different from that of an entrepreneur with a million dollars in start-up capital.
The best business to start for an entrepreneur with a $1,000 start-up capital may be an online niche store while the entrepreneur with the million dollar capital will feel that starting a gas distribution business or a manufacturing firm will be the best bet. So take note that your start-up capital is a predominant factor when deciding what business to start.
3. Who is on your Team?
The competence of the management team you have on board will determine the kind of business opportunity to pursue. If your business team has a track record of successes; then raising capital to pursue big projects will be a piece of cake. But if you are a solo entrepreneur, then your best business opportunity will be quite different.
4. How Strong is your Business Plan?
If you have the right plan, coupled with the right team and the right mindset; then you can pursue mega projects. But an entrepreneur who lacks the orientation of the use of a business plan will just bootstrapped his or her business on a shoestring budget. The extensiveness of both your personal and business plan will determine the kind of business opportunity you will pursue.
5. What Business idea do you have in mind?
Lastly, the best business to start varies from entrepreneur to entrepreneur based on the ideology of the entrepreneur and the prevailing circumstances. Your best business opportunity may differ from mine based on prevailing circumstances such as local trend, your passion, hobby, skill, geographical terrain, demographics, psychographics, demand, supply, economic policy, etc.
The best business to start for someone in Nigeria or China will differ from that of someone in United States, Canada or India. And most importantly, I listed the “business idea” last because it is the least important necessity to starting a business.
Remember, the world is filled with brilliant, million dollar ideas but the world lack savvy entrepreneurs. An average business idea with the right mindset, a strong business management team, and the right business plan will outperform an excellent million dollar idea with a poor mindset and a weak management team.
So when deciding what business to start, make sure you do your preliminary feasibility study. Also make sure that the right combinations are in place and when contemplating on the best business to start; be sure to take into consideration the five questions to answer before doing business and I will see you at the top.