Establishing a business of your own is not easy, but if guided by business principles and procedures, you can do it.in running and choosing a business, you need to consider the following:
Availability of Resources.
Market Demands.
Current Business Trends.
Good Location.
Capital or Fund.
Your goal, therefore, as an entrepreneur is to find a business that stands a greater chance at success. You will need to determine what you can and cannot do, research on the potential market and how other similar businesses are doing, and what works well in your area or selected business medium. Choosing the best type of business
1. Less Money Out.
The first school of thought focuses on the amount of resources that you have. The kind of business that you start depends on the amount of capital you can raise. If you have deep pockets, you can go all out with your business - getting first-rate equipment and furnishings, hiring employees, launching the business in grand style, and buying loads of inventory. However, if you have little capital, all you can do is to stretch what you have and start the business on a much smaller scale.
2. Novelty and Excitement.
Another strategy for selecting a business is to start one that is currently hot, hip and new. In the Philippines, for example, pearl shakes - an innovative cool beverage drink in natural flavors mixed with "pearls," or dark, spherical, chewy balls made from yam and tapioca -- became the hottest craze in town. Mom and pop stalls and cafes offering this new drink popped up all over the metropolitan Manila.
You can join in the fray, and start a business that has already proven itself to be a moneymaker for others. However, there is danger in adopting a start-up strategy on prior demand--demand already created by others. What if the business runs out of steam, and the novelty and excitement that pushed it initially wears thin? You may be faced with cutthroat competition, with price-cutting as the ultimate marketing weapon of choice.
3. Safety in Numbers.
As a new entrepreneur, you may also consider a business that has already proven popular, dependable with consistent demand, and can be found everywhere. Common businesses include eating places, groceries, used merchandise stores, gift and novelty stores. If these businesses have staying power and are frequently found, then they must be profitable, right?
1. Less Money Out.
The first school of thought focuses on the amount of resources that you have. The kind of business that you start depends on the amount of capital you can raise. If you have deep pockets, you can go all out with your business - getting first-rate equipment and furnishings, hiring employees, launching the business in grand style, and buying loads of inventory. However, if you have little capital, all you can do is to stretch what you have and start the business on a much smaller scale.
2. Novelty and Excitement.
Another strategy for selecting a business is to start one that is currently hot, hip and new. In the Philippines, for example, pearl shakes - an innovative cool beverage drink in natural flavors mixed with "pearls," or dark, spherical, chewy balls made from yam and tapioca -- became the hottest craze in town. Mom and pop stalls and cafes offering this new drink popped up all over the metropolitan Manila.
You can join in the fray, and start a business that has already proven itself to be a moneymaker for others. However, there is danger in adopting a start-up strategy on prior demand--demand already created by others. What if the business runs out of steam, and the novelty and excitement that pushed it initially wears thin? You may be faced with cutthroat competition, with price-cutting as the ultimate marketing weapon of choice.
3. Safety in Numbers.
As a new entrepreneur, you may also consider a business that has already proven popular, dependable with consistent demand, and can be found everywhere. Common businesses include eating places, groceries, used merchandise stores, gift and novelty stores. If these businesses have staying power and are frequently found, then they must be profitable, right?
4. The Fewer, the Better.
On the other side of the spectrum from those who believe in safety in numbers are those who think that they are better off in a business with fewer competitors. This is the idea behind the strategy of focusing on a market niche, which has proven to be apt, even a lifesaver, for many small and home-based businesses. Niche entails offering unique products or services to a few concentrated markets.
5. Rapid Growth.
You may also want to start a business that has enjoyed fast growth in the past years. A rapidly growing business sector, where many new businesses continue to operate, shows that there is great demand for the product; the market can absorb new entrants; and if by looking at the size of businesses operating, the market may be profitable even for one-person businesses.
6. Failure Rate Method.
You may check the businesses with the greatest number of failure record. Business failures as those that "ceased operations following assignment or bankruptcy; ceased operations with losses to creditors after such actions as foreclosure or attachment; voluntarily withdrew leaving unpaid debts; were involved in court actions such as receivership, reorganization or arrangement; or voluntarily compromised with creditors."
7. Biggest Payoff.
Another logical choice for choosing a business is to look for those that yields the best return-on-investment. This approach involves "checking through the operating results for different business types to find those with high percentages of operating profit."
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