This is a question all business consultants get every now and then and reality is that the question has NO universal answer! It really depends on who is asking it. Here are some criteria to look into:
- What is that person’s passion? Building up a business needs perseverance and you do not easily go through the though start-up challenges if you don’t have a true passion for the concept of the business.
- How high are the barriers to entry? Most of the people look for high margins and easy-to-start businesses. However, if it is an easy-to-start business, you should never expect a high-profit margin. Conclusion: look for businesses which are difficult to start.
- What industry is that person already familiar with? The product knowledge or industry knowledge is a key to success.
- How much capital does the person have? Depending on how much capital you have in your bank account, your options will change. Even if you are applying for a bank loan, you can always get higher loans if you show higher contribution yourself.
- Is the entrepreneur a people’s person or prefers to keep away from people. The person’s personality plays a huge role in his/her success. If you do not love talking and socializing with people, probably you should keep away from most of the service businesses.
And the next step? Figure out your business model and hire a professional to write your business plan. Then you have a well-documented plan to start your business.