Starting a business is an exciting journey, but finding the right venture requires careful consideration. We are asked "what kind of business should I start" quite often, so we thought it would be a good idea to create a post about it.
The "kind" of business you should start has a somewhat complicated answer. But this post will help you break the process of selecting the right business down into bite sized pieces that will help you make sense of it all.
What's the Big Deal?
The reason selecting a business can be complicated is because, as business owners we have a variety of backgrounds, interests and skills that makes exploring the best business unique for each individual.
A business that allows one person to thrive may be a disaster for another person. So to answer the question, the best business to start is different for each individual.
This guide will take you through the essential steps of self-discovery, market analysis, niche selection, building an online presence, setting income goals, and long-term planning. The individual choices belong to you.
Self-Reflection and Assessment
Understanding yourself is the foundation of a successful business. Ask yourself:
It's important to find a business that is not only profitable, but one that you truly enjoy. Evaluating your hobbies, skills and interests is critical to the success of your business.
Choosing a business based only on profitability can lead to a business you hate waking up to each day. On the other hand, starting a business you love waking up to can be fun, rewarding and profitable.
Choosing a business that's based on your hobbies and interests can position you as an authority because you know the inside insight most people in your niche would love to know.
Your business can be something you pass down to future generations and show you family and friends another way to reach their financial goals.
Our Latest Podcast Episode: Listen on the Go!
Seeing you excel in an online business can inspire friends and family who remember your journey. They will know that it's possible to transform from beginner to someone who followed their dreams to transform to successful business owner.
Take the first step in figuring out the best business for you. Download this 5 question survey and watch Video 1 below to evaluate your skills and interests.
1. Review Your Interests
2. Perform Market Research
3. Find Your Perfect Niche
Check out our video playlist, Using Your Interests to Find a Niche that walks you through the steps you should take to evaluate your hobbies, skills and interests.
In addition to evaluating your strengths, the playlist covers performing market research and using artificial intelligence to find the perfect niche.
Market Trends in 2024
Once you've identified 3 areas of focus from the self evaluation, it's time to perform market research. Watch Video 2 from the video playlist above.
This will help you learn more about the niche areas of focus you decided on in the skills and interests survey, based on your hobbies, skills and interests.
Search Google to research and highlight current and emerging industries and market trends for the current year (or check future trends for the next year) to see if there will be a demand for the products and services you would like to offer in your business.
Take the information you find during your research and outline opportunities for businesses in your niche for the next six - 12 months.
Video: What Kind of Business Should I Start?
Niche Selection
From your list of 3 niche ideas, it's time to narrow down your list to one niche that you can use to start your business.
It's important to choose one niche and learn as much as possible about that niche. That means learning about the people in that niche, what they want, their dreams, fears, challenges, frustrations, problems, goals and aspirations.
Then choose products and services to promote (solutions) that can help them accomplish what they need to be successful.
Understand their issues, concerns, challenges, and any obstacles that can stand in the way of their progress. Outline how your products and services can act as a solution to get them where they need to be when it comes to reaching their goals.
Your Web Presence and Online Business
Every online business needs a way to communicate with a targeted audience. And to have a thriving online business, you'll need a way to have two way communication through an online platform.
You also need a web presence on as many channels as possible. Channels like social media, limited use sites as well as paid ads.
For your online business, these best solution is to form a hub, a place where everything comes together. Consider an eCommerce, video, audio or blogging platform that enables you to inform, spread the word and sell products to your customers.
We use our blog as our central hub, and point our eCommerce, video, and audio platforms to our blog. So our blog is the constant, central location that our customers can count on to learn about and interact with our business.
You need a place that tells potential customers who you are, what you do and how your can help them reach their goals.
Use web design and graphic design skills (take the DIY route or hire someone to build a platform for you) to establish a brand that enables your business to stand out as the go to place for your chosen niche.
Use your platform to sell products you make (digital or handmade products or products made by others (affiliate products) to earn passive income on a consistent basis.
Popular Business Models
Here are some popular business models you can use to start a thriving business. I would recommend starting with one and adding as your business grows
Start a Blog You Can Use as a Central Hub!
Blogging is a powerful inbound marketing medium and source of revenue for many. And contrary to popular belief, you can get started for as little as $2.95 per month. No tech or design skills are needed. Check out our free blogging tutorial to get started with Bluehost!
Our free tutorial shows you how to build out your blog. It includes what to write about, as well as how to select keywords, colors, logo, structure, and navigation.
Open an eCommerce Shop
If you have products to sell, and you don't want to place the focus on blogging there's no better business model than an eCommerce store.
We recommend Shopify as a straightforward platform that gives you lots of options for promoting products on the internet.
Get Started with Print on Demand
If you love designing graphics and using your designs to create a brand, you will love print on demand. It's a great way to get started with a minimal investment of upfront money and you don't need to maintain inventory.
Even if you're not that great with designing, get your design assets from the Creative Market, an online marketplace for community-generated design assets. They sell graphics, WordPress themes, stock photography, product mockups and other digital goods for use by web creatives that you can buy individually or when you purchase their membership, you can save 20%.
Become an Affiliate Marketer
Affiliate marketing is another way to sell other people's products without maintaining inventory. You will need a following to be successful with affiliate marketing because you get paid for each sale your bring to your affiliate sponsor.
Showcase Your Handmade and DIY Talents
Get started with an Etsy store and get your first 40 products listed for free. Etsy is a great platform you can use to get your products online quickly and relatively easy.
Become a Freelancer
Help your ideal customers accomplish their goals, by using your talents. Once you determine your niche and the kinds of customers you want to work with, create a platform and start promoting.
Create and Sell Digital Products
Selling digital products can be one of the most lucrative and rewarding things you can do from home. There is a lot of variety that keeps things interesting, and they can be adapted to most any niche.
If you have any creative skills – in writing, design, music, video, computers, coding, education, or any other field – you can make digital products. There is nothing stopping you!
Setting Income Goals
How much income do you want to make from your business? What are your financial goals on a weekly, monthly, annual basis. How many products or services will you have to sell to reach your goals?
It's important to set SMART income goals based on your chosen business. Set policies and procedures and set up automated systems that will enable you to reach your audience using your platform. Setting up systems will enable you to make passive income that comes in consistently.
Once you start reaching your income goals, use the policies, procedures and systems you've created to scale your business over time. Duplicate the systems that work to earn more and extend them to other products and services to increase your income capabilities. Read our article on how to reverse engineer your way to your first $1000 per month.
Conclusion
It's important to take actionable steps towards starting your dream business. And if you've gone through the exercises in this tutorial, you should be well on your way to understanding which business will be the best one for you to start. Keep in mind that there's value in combining your personal passions with market opportunities.
Feel free to share your thoughts, questions, and business ideas in the comments. And check out the resources we've outlined for you.
Recommended Sales and Marketing Tools
Here are the tools we use for blogging, shop management and everything you see here. If you have tools that work, feel free to use them in the exercises.
Lead Magnets
Opt-In Forms
Automated Posting
Email Marketing
Landing Pages
Scarcity Campaigns
Payment Processors
Don't have a shop? Create links that will enable you to get paid.