Starting a Business – Where Do You Start?

I recently read an article about “what type of business to start”. The article outlined 5 different questions you should ask yourself before deciding which type of business to start.

The questions were good ones to consider, and there are some hidden nuggets in them so I’ll go over what they were in just a minute. But it struck me that most new, or soon to be, entrepreneurs really need more help than just pondering these 5 questions.

My intention here is to outline a thought process and a new business opportunity option that cuts to the chase and gets you started on the road to entrepreneurship quickly and efficiently.

In the article I read, Question #1 was about retailing versus wholesaling. In general, retailers sell directly to consumers, often, but not necessarily from a storefront. Wholesalers, on the other hand, buy and sell large quantities and most often sell to retailers.

Del’s suggestion – Find a business where you can buy wholesale and sell retail and do it online. I don’t recommend storefronts for new entrepreneurs.

Question #2 asked if you wanted to start your business from scratch or buy into a franchise opportunity. A franchise is basically the right to sell a product someone else has created using a system they have designed. The alternative is to do it all yourself – create and produce the product and market and sell it though a graphic design web system you create.

Del’s suggestion – I highly recommend a franchise model. There is so much you can learn from other people’s mistakes. With a solid franchise you get a proven system. My twist on the franchise suggestion is to find a system that also allows you creativity within the system. These types of franchise opportunities are out there if you do your homework.

Question #3 asks whether you want to sell a product or a service.

Del’s suggestion – Ignore this question. Ultimately you want to be in a business that resonates with you, and whether it’s a product or service is irrelevant if the value it provides to your end customer resonates with you. Besides all companies are really service companies. Ignore that little tidbit and see how long you stay in business!

Okay Question #4 – here the article suggested asking yourself whether you want to have a physical storefront.

Del’s suggestion – when you decide on what you want to sell (because it resonates with you) you will know right then if you need a storefront. If you want to sell mixed drinks, and be in the entertainment business, then you’ll need a storefront (in this case a bar). My best advice – whatever you decide to do, think first about doing it virtually. You’d be surprised at how many businesses have storefronts that could be virtual, netting the owner so much more money.

And Finally Question #5. What industry do you want to be in?

Del’s suggestion – This is a no-brainer. Pick an industry that you know something about and want to learn more about. The second part is the key. Pick an industry where you are hungry to know more and your business will always be rewarding!

So in summary, if you’re on the path to be an entrepreneur think about starting a business that looks like a wholesaler and acts (and profits) like a retailer. Find a flexible franchise type model. Never forget that regardless of what you sell you are in a service business. Always look to do it virtually, you’ll make more money and have less headaches. And finally, pick an industry that you like and have a hunger to learn more about.

Happy Hunting!