How To Decide What Kind of Business To Start

Are you struggling with what type of business to start?

Feeling like you are wasting time or money to get the idea off the ground, well I am here to help you out!

You have made the first step by checking out this page, but now you have to define your vision.

We are going to go ahead and cover a few areas such as your finances, employment, resources, time commitments, and risk tolerance.

You will also need to answer these questions to help you decide what type of business you are comfortable with starting and growing.

By the end of the post, you will able to know whether your business should start as a hobby/freelance or go full-time!

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#1 Employment

Are you happy at your job? Do you like your co-workers and boss?

Starting a small business while working full-time can be challenging.

As you start your small business it may start off slow and small, but it can be scaled to and provide an extra source of income.

That income could in turn offer you security.

#2 Finances

How tight is your money right now? Do you have savings?

What kind of debt do you carry? (Student loans, Credit Cards, Mortgages, Cars, Etc)

Are you able to cover monthly living expenses without a steady income?

Could you qualify for a start-up loan?

These are all questions you should ask yourself and write down when deciding the type of business to start.

#3 Resouces

What type of resources do you have access to?

Know anyone in the business you’re considering starting?

Know of any mentorships, financing, childcare, and family supports all count as resources.

Other resources could be Google, YouTube, or This Website!

I myself LOVE YouTube and one of the first places I turn to for video style (how-to).

But when it comes to details, I head over to blogs that contain the resources I need.

#4 Time Commitments

How much time can you devote to your business?

Consider your employment, family, volunteer, and social commitments, also remember to factor in time spent on hobbies.

Creating a 24-hour / 1 Week chart can help you visualize all the areas you spend your time in.

Maybe one of those hobbies could be turned into a business.

#5 Risk Tolerance

What is your level of risk tolerance?

Some people feel comfortable scaling up from hobby/freelance to full-time.

This means they will continue to work their current line of work, doing their business on breaks/lunch and after-hours.

Fulltime is jumping in head-first without looking back and quitting their current employment.

How Do You Choose?

Side hustle or FreeLance

Create to use your current source of income to fund your new business venture.

You first want to test the water with your business idea before diving in.

Value your current employment as your main source, and see your business as secondary.

Don’t slack off in your current employment, this is your main source of fuel.

Full Time

Are you mentally and financially prepared to self-sustain yourself or your family until your business is profitable?

Already have a paying client(s) or customer(s) who can provide initial revenue.

Remember revenue in itself is not net income.

Take your [Revenue – Expenses to get your Net Income].

Know how much net income you need to cover those living expenses now that you are going at it full-time.

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In My Experience

I’ve started 2 businesses from scratch and my wife has started one of her own, and they have always started off as hobbies.

One was something I had already enjoyed (Gaming & Finance) so here I was creating ways to monetize each area to turn something unprofitable into something that drew in money.

It has worked out with low start-up costs, the media business grew to intake 5 figures yearly and running in order to continue to grow and scale.

This is 100% possible for everyone, take something you enjoy now and think “How can you monetize this?

Conclusion

I hope this post has helped you decide what kind of business to start or think over.

We went over a few areas I myself never thought about when starting my first business, but went back through and answered when starting my second.

If you have any questions or suggestions, be sure to let me know and I hope this How-To post has helped point you in a better direction.

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– Investing On The Go