Matchmaker, Matchmaker, Make Me a Match! - How to chose the
'right' business for YOU
All right, so you've decided to jump off the corporate ladder
and build your own. Congratulations! You've just joined the
growing community of home business owners in the US. Expanding
at an estimated rate of 10 % per annum, the home business
segment is being chosen by millions of people today. Running a
home business offers economic self-sufficiency, unparalleled
freedom and the satisfaction of finally being in charge of your
own life. All of this without a boss dangling on your head and
without the guilt of ignoring your family and the "me-time" you
so badly need.
Choosing Mr. Right
Now that you have decided that a home business is the best thing
for you, the first question that springs into your head is 'what
is the right business for me to go in to?' For every single idea
you think will work, there may be ten that won't. Since you will
be investing a lot of time, money and energy into this project,
it is imperative that you first evaluate the feasibility of the
idea.
In a business, you could be selling a product or a service or a
combination of the two. To decide what is the best mode for you,
a simple guideline here is to clarify in your own mind, two
things: 1. What do I want to do? 2. What I am capable of doing?
Take a stock of your interests and capabilities and then decide
on what would you rather be selling. For instance, if you have
been in the hospitality industry all your life, it may be a good
idea to choose a service-focused business like catering, rather
than selling computer peripherals, no matter how profitable that
looks. But if you've always been interested more in, say,
fashion designing and have had some experience in that field,
you have more chances of succeeding with starting a boutique for
clothes. So, a good recipe for success would be to marry your
interests with your core competences. Team it up with hard work,
determination and a wide focus vision to go a long way.
For some new business ideas, take a look at these websites:
http://www.ahbbo.com/ideas.html
http://wordpress.org/articles/home-business--choosing-the-right-h
ome-based-business-opportunity.htm
Once you have decided what business you want to put all your
monies into, you must evaluate the option by measuring it
against some parameters:
- Does it fill a need-gap?
- Does my idea satisfy an
existing market need, not fulfilled by any other or many other
suppliers?
- Will my idea fulfill an existing need in a much
better and cost - effective manner?
- Will my idea 'Create' a
new real need for consumers? Along with these, also assess the
size of the market. Many a business has failed because the
market size was inadequate to keep the business beneficial in
the long run.
- What is my level of interest in this idea? Ask yourself if
your level of interest in the project will sustain a couple of
years down the line. Try to forecast how the idea can grow into
something bigger. For instance, if you decide to turn your hobby
of landscaping into a serious consulting business, ask yourself
where you would want to take it by the end of one year. Do you
see yourself doing this for a long time and do you feel there is
scope of expanding this business. If you are brimming with ideas
here, then yes, you are interested enough in this idea to take
it up.
- How well can I manage this business, given my interest and
capabilities?
- Do I have the required knowledge on this
service or product?
- Do I have significant experience in this
field?
- What are my managerial and marketing skills for this
business?
- Do I have any additional professional
qualification that will help me run this business more
efficiently?
- Financial viability of the project
- What is the
revenue stream? Where from and how will the money come in?
I. This is one of the most important aspects you should look at
when considering a new venture. Unless you see a clear revenue
inflow to the business, discard the idea.
- What will be the total cost of putting this project on its
feet and how will I fund my start-up?
I. Evaluate the options you have. You could either be financing
the project from your own savings or through a bank loan. You
have to be very clear on how you will manage your personal
finances, if a large chunk of your savings gets engaged in the
business for a certain period of time. If you will be opting for
a bank loan, remember that it has to be re-paid in a certain
time period. Would your business start giving enough returns by
then?
- How much time can I dedicate to this project?
- Each
business has an approximate "gestation period". That is the
amount of time it takes to break even. Some businesses may need
upto one year to mature and start giving returns. Do you have
the patience to wait and not get disheartened?
- Do I own the space required to run this business?
- Whatever business you start from home, you will need
physical space to set up an office, stock your product, need
space for documents, other paraphernalia. Do you have that kind
of space at home that you can dedicate to your project? If not,
then it means you will have to rent space, which is not only an
additional cost but also takes your business from the realm of
home businesses and into the SME segment.
- What
equipment do I own which will be needed to run this business
efficiently?
- You will need to furnish your office with a
computer, a workstation, fax and phone lines, a modem and an
Internet connection. Since the Internet is the backbone of most
home businesses, it would be helpful if you were already
connected to it. Make a laundry list of all the equipment and
gadgetry you possess and see what can be used in your business.
It would help you later in bringing down the cost of buying new
office equipment. Also see:
http://www.powerhomebiz.com/vol13/evaluateideas.htm
Most home business owners start out with a positive attitude and
the will to kick up some dust with hard work. That is good, but
not sufficient to guarantee success. Success depends on
carefully choosing a business idea, meticulous planning and some
reality checks.