Introduction
No business is easy, but some businesses are easier to create, scale, and do over the long term than others. In this blog, you’ll learn four critical criteria that you should think about when deciding what type of business you want to start next.
- Is easy to start?
- Is easy to scale?
- Is easy to do long-term?
- Will it improve people’s lives?
Create a business that’s easy to start
There’s a reason why kids start lemonade stands. Some businesses are just easier to start than others. Which is easier?
- Starting a one-person agency business with a laptop and skills you already have, such as graphic design;
- Or starting a new airline company that requires millions of dollars of capital, hundreds of people, marketing campaigns, jet fuel, aircraft leasing and maintenance, and lots of regulation?
The answer is obvious. As Richard Branson said, “If you want to be a millionaire, start with a billion dollars and launch a new airline.”
Create a business that:
- Is low-cost to start such as a one-person digital agency, online education, and basic e-commerce.
- You already understand and have the skills and knowledge to start. This will depend on what you can do. For me, it was marketing, content creation, and online ads.
Avoid businesses that:
- Require large upfront costs such as restaurants, physical stores, and manufacturing. These industries favour large entities that can invest a lot of money and delay profitability while establishing themselves.
- You don’t understand or have the skills and experience to operate. The time learning a new industry is usually better spent building on your current skills and knowledge.
- Are heavily regulated such as finance products, property, and law. These industries require extensive knowledge and experience, professional certifications, and established education. These industries favour large entities such as banks, brokerages, firms, and well-established professionals.