Many people seek to become entrepreneurs but are unsure what type of business to start. Perhaps you have a passion but cannot see a way to make a profit with it. Or perhaps you do not have a particular interest but have noticed a need in your community you believe you could meet with a business venture. Either way, here are some tips (brought to you by Tailor Sallee) to help you evaluate your ability to launch an enterprise.
Assess Your Skills and Experience
Think through your own abilities and life experiences to determine how you could add value to your community by starting a business. Eco-friendly businesses help the local environment by using fewer resources than their counterparts. If you love to cook and get rave reviews about your food, perhaps opening a restaurant growing your own herbs and vegetables is something you dream of. Evaluate your background to help you determine what type of enterprise to start by:
Searching for a way to capitalize on a passion
Thinking of how you can use a current skill in a unique way to serve a need
Taking a current skill and deciding to use it for your own company
Identifying a gap that could be filled with a new product or service
Research Market Demand and Competitors
Once you think of a business idea, check into consumer demand for the good or service. You may have thought of a useful product that supplies a solution to a problem that no one else notices and therefore the demand for that product would be low. Speak with friends, family, and potential customers to determine whether they would purchase what you hope to sell.
Further, conduct research to identify the competition. You may have an idea in mind that someone else actually has thought of already, and then you might need to go back to the drawing board. Or, you may find that there is room in the market for your business as well.
Determine How Much Time and Money You Can Spend
Your financial position will in large part determine how much time and capital you can put into starting a company. If you have significant savings and other sources of revenue, perhaps you can invest all of your energy and a large sum of cash. However, if you must continue working, be realistic about the time you can spend on this venture.
On the financial side, calculate your startup costs such as rent, office furniture, advertising, licenses and more to gain an understanding of what you need to get off the ground. If necessary, secure loans or attract outside investors for the capital you require. Remember that only 40% of startups are profitable according to statistics, so plan to ride out the storm until you realize a profit.
Consider Furthering Your Education
If you cannot seem to figure out which environmentally-friendly business is right for you, consider going back to school. You can earn a doctorate degree in business administration online while keeping your full-time job or caring for your family. When you seek out an online school ensure it is accredited and offers competitive tuition rates.
Launching any business can be complicated and eco-friendly ones are no exception to the rule. Take your time determining what type of company you want to start and carefully analyze the market and financials to give yourself a sound beginning.
Author: Tina Martin