Is this a good time to start a business?
Unless you’ve been living in a cave, then you know that the economy has been in the dumps for several years now. In fact, you might be living in a cave, or close to it, because of the economy. When you can’t get a job, then your thoughts might turn toward self-employment and starting your own business. After all, you’ve got to do something to bring in some bucks.
But, if the economy is so challenging for established businesses, why should you even think about jumping into the fray with your own business? Because there’s the chance that you can create an income stream of your own. Even if you can’t replace your salary, it might be worth it to think about starting a business so that you can bring in some extra money.
Before you do start a business, here are a few things to consider.
What product or service will you provide?
Businesses provide either a product, a service or both to make their money. What can you provide? Do you have talent for making a product? It might be wooden toys, cakes, or clothing. Maybe you have a talent that has long been devoted to a hobby but that now looks like it might be an income opportunity. If you have such talents, stop and take an inventory of what they are and what you can do.
Maybe your talents don’t run to making a physical product. Maybe your talent is knowledge-based. You can teach others a useful skill such as cooking, music, or sewing. Take inventory of your skills and look at what you can teach that others would be willing to pay for.
Your knowledge might enable you to provide a valuable service such a bookkeeping, house cleaning, or pet sitting. If you have knowledge, experience, and a history of doing such services, then you might be able to turn your talents into an income-producing business. It doesn’t matter that you have never been paid for your services before. It’s the experience and ability that counts.
Will people be willing to pay you for it?
You might be able to create a product, provide a service or both. But will people pay you for it? You might think that everyone should know how to crochet; that people will sign up in droves to learn the skill. But will they? This is where a little research can help you out. First look in the phone book and online to see if anyone else is offering this service/product. If you don’t see any listings for it then that is telling you either you’re the one on the forefront (unlikely) or that there is no paying market for this service/product.
How to succeed in business
The key to success is to offer a service or product that people are willing to pay you for. The amount that they are willing to pay must be enough to cover all of your costs and give you a profit. Before you start any business, you must first decide what service/product you will provide and whether enough people will be willing to pay you enough money to make it worth your efforts.
So start by deciding what product or service you can provide and how much people will pay for it.
Then look at what it costs you to provide that product or service. If the amount that people will pay is more than your cost to provide, then you can move forward in your efforts to create a business.
This is just the beginning though. There’s a lot more work to be done. Stay tuned for more suggestions on how to start your business.