Know Your Strengths
Using your strengths can help you excel in any business, but the reverse is also true. While your business will most certainly push you to grow, if the business requires you to go way outside of your comfort zone, you might be fighting an uphill battle. Consider your greatest strengths and find something that more closely mirrors your skills.
Match Your Passion With a Consumer Need
There is a common saying “do what you love and the money will follow.” However, passion is only part of the equation. In reality, do what you love and the money may or may not follow. If your passion is refrigerators and the world is in an ice age, your market has no need. It’s vital to put your passions and motivations aside and look at the hard realities of the market, what people want, and what they are buying now.
Choose the Right Market
A hot business startup in one market can transfer to other markets. When I began my small business journey over 18 years ago, I worked for FitnessLand, founded by Harv T. Ecker, author of the bestselling book Secrets of the Millionaire Mind. Ecker was visiting Los Angeles one day and noticed the emergence of exercise equipment stores. He brought the concept home and five years later sold the business to Heinz to pocket more than a million dollars.
Know Your Financial Limitations
No matter how hot a business opportunity may be, if it exceeds your startup and seed money, it’s not a great business for you. Carefully determine the complete cost of starting your business and how long it may be before you start turning a profit. You can try to raise money but the odds of getting venture capital are very low. Start a business within reach of your financial abilities.
Think Long-Term
A hot business opportunity should be based on a long-term trend, not a short-lived fad. Look at the business overall. Is the industry growing consistently year after year? Can you get in at an early stage or is the market already saturated with competitors? The challenge is to look beyond the hype of companies and media and see the trends from the fads. Starting a business is no easy endeavor, but the time, effort, and challenges can be worth it if you succeed. To give yourself the best chance to be successful, take your time to carefully find the right business for you.
