Start the Right New Business for You
Consider both profitability and your own strengths when starting your own business.
If you want to work for yourself, but don't have a particular business in mind, you're probably wondering what kind of business you should start. Fortunately, the answer is always the same: Pick a venture you know intimately, and then research it some more.
Know the Ins and Outs of the Business
Don't fall into the trap of starting a particular business just because someone tells you, "It's a sure thing." Potential customers will part with their hard-earned money only if you convince them that they're getting their money's worth, so you'll need to know what you're doing, no matter what the task.
Choosing a Business You Know
Starting a business in which you already have experience has many advantages: You can use your knowledge about the industry, your training and skills, and your network of contacts who might help you find financing, suppliers, and customers.
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For ten years Steve worked for several different construction companies -- first as a journeyman carpenter and then as a project manager. When he got the itch to start his own business, it made perfect sense for him to start a small contracting business specializing in home-improvement. He knew the industry well, including the best places to buy supplies and what he could charge for services, and he had the required skills, such as how to estimate and bid jobs -- and it didn't hurt that he knew how to pound nails as well. The contacts he had developed over the years were glad to talk to him about running a small contracting business, and many customers he had worked with in the past told him they'd be willing to hire him if he were working on his own.
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