Many times people can think of multiple businesses they would like to start; however, picking the right one can mean the difference between failure and success. There are five major factors to consider when starting a business: specific industries, franchise versus independent businesses, retail versus wholesale, products versus services and storefront versus non-storefront businesses.
Choosing an Industry to Start a Business
If someone is having difficulty deciding what type of business to start, she should consider things she is passionate about. To have a successful, fulfilling business, she needs to pick something that she has experience with and loves to do.
For example, if a woman enjoys baking for friends and family, she might consider selling unusual types of cupcakes such as iced pistachio cupcakes and applesauce spice cupcakes in her town and online. If a man makes it a point to go golfing every weekend, he could start a business teaching golf lessons. Someone should not start a business doing something he’s good at but doesn’t enjoy. For instance, a man may be excellent at math but shouldn’t start a math tutoring business if he hates to do it.
Franchise versus Independent Business
If there is a business already established and successful that someone wants to replicate, buying a franchise is good option. Buying a franchise entails a franchise fee, paying royalties and following the terms of the franchise. An independent business is one in which a person builds from the beginning and has complete control over. It was created by the owner.
Retail versus Wholesale Business
Retail businesses sell directly to customers. Wholesale businesses usually sell large quantities of products to retailers to sell to customers. Someone who really cares about interacting with customers and wants to be a part of selling directly to customers should consider a retail business whereas someone who wants to produce mass quantities of products to sell to other companies should consider wholesale.
Products versus Services
Businesses can sell specific products, provide specific services or both. For example, a business selling organic dog food is selling a specific product. A limousine business is providing transportation services to its customers. A catering business is providing food and service at the same time. Someone starting a business has to decide whether he wants to sell products, provide services or both. A person starting a business can start by selling products or providing services and then offer both in the future if it’s too overwhelming to do both in the beginning.
Storefront versus Non-Storefront Business
Someone who decides that she wants to sell specific products will need a place to sell them. She might get a store, sell her products through already established storefronts or sell them on the internet. Someone who is providing services doesn’t necessarily need a storefront. For example, someone who starts a housekeeping business will perform the services in people’s homes and someone who starts a wedding planning business will be meeting most clients at their homes or at vendor locations such as at a florist’s shop.
Someone can choose the right business to start by considering five critical factors: specific industries, franchise versus independent businesses, retail versus wholesale, products versus services and storefront versus non-storefront businesses.
Related Reading
If you found this article helpful, you might benefit from reading 5 Tips to Starting a Successful Small Business, How to Start a House and Pet Sitting Business and How to Start a Holiday Decorating Business.
April Bowles - Just to name a few of my hobbies, I love crafting, writing, football, baking and reading. I’m a professional writer, therapist, and ...
