How To Decide What Business To Setup

Congratulations! You now have made your decision to venture into entrepreneurship and you are now on your way to building your empire. Easy as it may sound but first thing first, what type of business are you going to start? Why this business? How sure are you that this one will work for you?

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Well, to start with, there is no such thing as an instant recipe for business success. Whatever type of business you decided to pursue, it will definitely be a very challenging yet amazing journey in the making.
When the thought of being an entrepreneur crossed my mind, I have mixed emotions. Part of me is so excited thinking about the endless possibilities and opportunities it can give me and my family. I’m going to be my own boss, we can now manage our time at our own phase, and we’ll be able to finally have our dream vacation. It’s easy to become obsessive with the thoughts of what we really wanted to have once we already have set up the business from the ground up, we tend to just obsess our minds on the sweet perks of the business. The other part of me is scared, here’s where all the “what-ifs” starting to make me nervous.  What if there are no sales? What if I don’t get any customers? What if I cannot manage the business?  Well, there will be more “What ifs” as you journey along, but what’s important is accepting the fact that whatever business you choose, there will always have its pros and cons. We just need to first set the correct expectations and most important of all is find what business suits you?
How to decide what business to setup?
When you open Google and search “How to find /choose /build the right business?”, you will see inundated articles about choosing the right business.  All the tips online make sense to me like, having business for something you have passion about, something you are really good at, something that can give you a huge profit or something that is close to your heart.  For me though, it’s not just any of these tips, it has to be ALL.
Here are the tips that will help you decide what business to setup:
1. Identify what type of business you want?
a. Service Based Business
Is this a service-based business?  It is basically providing services to customers instead of an actual product.  Think of the skills you have, what is it that you do that you are really good at and proud of. For example, you are good in writing and journalism, then you can use this skill of yours in blogging and you can monetize it, or by being a freelance writer, you can work on companies that require part-time /full-time writers.
You may have a creative juice in you in interior designing; you can monetize it as well by turning it into a business. You can have your own interior design business where you can showcase your previous works, your friend’s kitchen that you designed or your previous working experience in an Interior Design Firm.
I’m sure there are a lot of other skills that can be a source of income when you turn it into business. You just have to ensure you are really good at it and you love doing it.
b. Product Based Business
Do you want to sell any products? Is it going to be an actual product like shoes, bags, clothes? Or digital products like printable planners, business plans? If you love selling stuff, you can probably come up with a product that can really sell in the market. Perhaps you love designing shoes or bags or baking cookies and cakes or maybe you just like the idea of selling…so anything you can get your hands on, you will be able to sell.
c. Service and Product Based Business
You bake really nice cakes and pastries and your friends and family have asked you to have a bakery where you can bake and sell your baked goodies. You really are a good cook and everyone just adores your cooking, why not open a restaurant so can cook and everyone can try your dishes. Service and Product Based Business basically is a combination of service and product that you can offer to the customers.
2. Something you love and passionate about.
Why is this factor the number one factor to consider when opening up a business? It’s very obvious..if you love something, you will definitely have a lot of passion about it, you will take time to really learn it and you know how to handle when things go rough..because you love it. You will do everything in your power to ensure that whatever it is you sell or do is of top quality.
I love baking cakes so I decided to bake as a side hustle. I love baking customized cakes and cupcakes. I love the baking process itself. I didn’t attend any formal baking classes, every baking skills I have is self-taught. I used YouTube videos and baking books as my primary resources of knowledge. My cake prices are really cheap compared to the already established bakeries out there but I don’t mind, all I ever thought of is I just want to bake but the same time makes money out of it. When things go wrong I will never stop fixing the problem because I just love baking whether it turns out good or bad.
Passion and love for baking are there, but am I doing it right from a business perspective? Maybe yes, maybe not.
3. Something you are good at.
You heard about your friend who got a stable income from blogging showcasing all of his captured photos. Not only that, he is also a contributor in Pexel and gets a real good pay-check out of it. His main business is his photography skill and he is really good at it. If you like taking photos and just don’t have the skills on it then it may have a drawback when you decided to monetize it. If you think you’re not good enough at a certain skill you have, but you want to make it as a source of your income, you may need to consider enrolling into a course or program specializing that particular skill. You may just need a bit of a touch-up and you’re good to go.
4. Something that is profitable and reliable.
Make-up is your thing. You love buying anything has to do with makeup and not only you but all the women you know just can’t get enough of hoarding all sorts of make-up cosmetics and tools. The demand is so high that you decided to sell make-up sponge and brushes. Have you asked yourself? “Is it profitable?”, “Is the profit enough to be the source of your income or even just to pay your bills?”.  If yes, then you’re on the right track, if not, you may need to reconsider on something else to sell. Not because it’s the trend, it is profitable. You have to consider a lot of things before joining the bandwagon.
5. Competition
You want to open up a mini-mart but there’s already a mini-mart in every corner of every block in your area. It’s like a mushroom, it’s everywhere. You think you can withstand the competition? If so, then you have to answer the questions, “What makes you stand out?”, “Why people will buy from you instead of the others?”. If you are up to the challenge, then you can go ahead if not then you can always think of another type of business you can invest your time and money without the worries if you will get it back.
6. Feasible
After going through the above-mentioned factors to consider before you decide what type of business is best for you, at the end of the day, one question needs to be answered in all honesty, “Is it feasible ?”. Is it financially feasible? Is your fund enough to use for Start-up? Is it feasible in terms of supplies? Does your supplier have the capacity to provide based on high demands? Is it feasible in terms of resource? If you will be managing your business by yourself and will be doing all the works, will you be able to commit your time to it?
It all comes to proper business planning. You don’t have to be so formal in planning your business nor you need any expensive business plans that are available online.  For me, all factors I highlighted above shall all be checked and it cannot be just one. Your business shall cover all the factors so it is guaranteed that it will be successful.
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Lots of Love,
Ann
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