What Type of Business do You Want?
The First Step in Launching Your Own Business

Most people determine which type of business to start based on one of three different criteria:

  1. Professional skills and competencies.
    Example: A person with a great deal of experience in logistics may start a warehousing and distribution business.

  2. Personal passions.
    Example: A beverage sales manager who, after 20+ years in the field, decides to start a fine-arts gallery based on his lifelong experience as a painter and his interest in the arts.

  3. Projected performance of the market, the economy, and/or a particular industry.
    Example: A purchasing agent who determines that an Internet-based bookstore offering e-publications will be a sure winner in the decade ahead, and moves forward with that venture.

The best of all worlds would be an entrepreneurial venture that meets all three of the above criteria - a business that utilizes your core skills and competencies which ties directly to your passion, and is in an industry or field that is projected to have strong growth throughout the coming years.

Service businesses in general, such as a geriatric social-service consulting firm, offer some of the strongest entrepreneurial opportunities in the global economy. Service businesses are particularly attractive because they're the fastest to establish, normally require only a small initial investment, and are relatively easy to manage from both operational and financial perspectives. In fact, many service businesses can be operated from your home, which keeps your overhead and operating costs to a minimum.

High-tech businesses are also predicted to be strong performers over the next decade. Statistics from worldwide sources indicate that there will be strong growth within diverse high-tech sectors for many years to come.

Manufacturing businesses in the U.S., however, are projected to have the slowest level of growth over the next decade. Also, they usually require a significant capital investment for facilities, equipment, materials, employees, and more.

 

SOURCE: Adapted from Wendy S. Enelow, The $100,000+ Entrepreneur (Manassas Park: Impact Publications) pages 29-31. Copyright 2008. All rights reserved. Copying strictly forbidden.