A lot of aspiring entrepreneurs regularly ask this question, “I have this amount of money, which business can I start?” We wouldn’t give a direct answer to the question, but here are some questions to ask yourself as you will be looking or choosing the right business for yourself.
Do you have the Passion?
Business is mostly a bumpy and curvy road, are you willing to keep on pushing regardless of the storm? Well I think that’s when passion comes in, and it plays a pivotal role in choosing a business to go for. If you don’t have the passion, do you see it developing as time goes on? If no, then think of another business to go for, you wouldn’t want to get in a business you would exit before harvesting profits or leaving an impact in the sector. Passion keeps one going regardless of early negative cash flows, passion keeps one going regardless of all the frustrations and demands that comes with that business, that’s why you need to be in a business that you love or see yourself developing love for. Passion is the initial investment in business and keep it burning till the end.
Is there a market or an opportunity or which problem are you solving?
For you to survive in business they should be a market or opportunity. An opportunity might be to supply small scale miners with equipment, rent out tents or blankets on funerals or any other opportunity. If it’s a new business, what problem are you solving? Is that problem worth solving or will it generate revenue? You would certainly want revenue to survive in business and that’s guaranteed by an opportunity or customers who are ready to pay for your solution.
Do you know or understand the business?
Another question to ask yourself is, “do you know or understand the business?” if no, then start investing in acquiring knowledge about that sector and how it works. Yes employees may be there to do everything for you, but it will definitely come a time to relate with what they are saying. Lot of thanks to the internet, most information is a click away. Invest in knowing the business first before you put a cent in it, you would want to be assured of your existence in a near future.
Do you have the required Skills?
Being a businessperson, means to be in the forefront. You would need some skills that are key in your business especially when it is the first. Does your business require marketing skills, does it require writing skills, management skills or any other? Then invest in acquiring at least one of the skills so as to increase your chances of survival in business.
Is it profitable?
Sounds silly isn’t? But there are some business which are unprofitable. You would need to seat down and do justified projections and ascertain if your business will be profitable. Sometimes we realize it after running bankrupt that we were in an unprofitable business, you wouldn’t want to lose money because of ignorance… entrepreneurship isn’t a game of the ignorant.
Are you capable of funding it?
A business is an investment, and it takes time to for it to return. From your projections, you should establish the total investment needed for it to be profitable. If it’s a bankable business you can later on go for other different fund raising methods, however, if it is not a bankable business you have to fund it till it returns or borrow some money from friend or family. You would not want to see your business die whilst you can’t do anything to save it from bankrupt. If your see yourself incapable of funding it, start very small or start with small projects to fund the big idea.
Do you have a goal or Long term vision?
Last but not least, do you have a goal or long term vision? Business is all about sustainability, and sustainability is built on a strong vision. If you do not have a long term vision, do you have a goal? Some start a business so as to fund the big business and some start a business so as to sell it later, hence you better have a goal or long term vision for your business so as to guarantee sustainability.