How to actually choose a business to start?

[makileth]

I am facing an important decision, and I am looking for valuable feedback. I have a desire to start my own business, but I'm unsure which direction to move in. After quite a lot of research, options that I'm personally interested in are eCommerce, SaaS and YouTube.

I know that you start a business based on a problem you find. However, the dilemma I am facing now is that I don't know which industry to look for problems in. In other words, I am not sure what should I dedicate myself to :/

I read somewhere on the internet that your business should have a meaning to you (something you'd do even for free) and be able to bring wealth. Is that good advice?

Have you had a similar experience? How did you decide on a business direction?

I am open to any feedback, whether from personal experience or professional perspective. Any advice or insight is extremely valuable for me.

Thank you in advance for your support and advice!

 

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[Nightwolf]

I don't know which industry to look for problems in. In other words, I am not sure what should I dedicate myself to :/

Well you can look for problems in industries you are already familiar with. Perhaps you worked somewhere and noticed some problems. Or you have a particular skill set that enables you to choose a industry. For eg coding enables you to enter several industries such as web design.

Have you had a similar experience? How did you decide on a business direction

I learned web development in about 5 months and then dove deeper into design which made it easier for me to choose my industry. (Web design ofc)

After quite a lot of research, options that I'm personally interested in are eCommerce, SaaS and YouTube.

Here's something to think about:
Why are you interested in those?
What skills do you possess or need to acquire to give you a edge in these?
What problems can you solve with these?

I read somewhere on the internet that your business should have a meaning to you (something you'd do even for free) and be able to bring wealth. Is that good advice?

In my opinion, even if you do something you love, you will eventually experience the dip as explained by Seth Godin. You need to have a work ethic to get through it.

Hope this helps

 

[Warloff]

I read somewhere on the internet that your business should have a meaning to you (something you'd do even for free) and be able to bring wealth. Is that good advice?

You're creating a business not a hobby. In my opinion, you want to be very competent at what you do so that does involve some passion. But, I think "falling in love" with your product can be very dangerous as you end up refusing to listen why customers don't want to buy what you're selling.

I know several successful businessman who admit they had no interest in what made them wealthy. I don't want to put words in MJ's mouth, but I believe he has no love for the limo industry.

I would say the key question to ask yourself is what can skills do you have right now to solve problems?

Identifying problems is easy. Solving them can be a bit more challenging. If I could figure out to make a cheap and affordable EV charger that could take a Tesla from dead battery to fully charged in 5 seconds, I'd be a billionaire. Problem, is I have no idea how to do that.

 

[stackbd]

I did this mistake, and started a business because I wanted to start a business, not because I had identified a real world problem, where a solution would be monetisable, in a market where I was passionate about.

Also, if you're not sure what the problem you want to solve is, then start testing the waters, without going all in. Carry out miniature tests to judge whether it is an idea worth pursuing. Coming up with the idea is not the most important part, it is the execution of that idea, and making sure to validate that idea in the market first, before full entering the market

 

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[Warloff]

I did this mistake, and started a business because I wanted to start a business, not because I had identified a real world problem, where a solution would be monetisable, in a market where I was passionate about.

Also, if you're not sure what the problem you want to solve is, then start testing the waters, without going all in. Carry out miniature tests to judge whether it is an idea worth pursuing. Coming up with the idea is not the most important part, it is the execution of that idea, and making sure to validate that idea in the market first, before full entering the market

Also, you don't need to be solving a huge problem in an original way. I know a guy who became a millionaire because he found out the only company in town that painted parking lines had a massive backlog...so he started a company that painted parking lot lines that had no backlog!

In fact, I think some of the best advice for budding entrepreneurs is found in the E-Myth: look at existing successful businesses and think if you can "franchise" their approach without actually buying a franchise.

 

[The-J]

For you? You've never started a business before, so the main thing you need is experience getting going. Choose the fastest path to cash. Not an EASY business, but a business that you can start working right now. A problem you KNOW people have and that you KNOW you can solve.

Get going. Help someone. Collect money. Repeat. Then, when it gets to be too much, figure out how to help more people.

After complicating it for a long time I've learned that it really is that simple and if you have the urge to complicate it more, DON'T. Resist that urge. The REAL complexities will become obvious in due time. The REAL problems to solve will crop up. Trust that.

Also, resist putting conditions on your success. "It HAS to be online, it HAS to make $x per sale..." there's no perfect business! A better opportunity may come along... or you may find that the business you started has way more opportunity than you ever imagined.

 

[WillHurtDontCare]

I am facing an important decision, and I am looking for valuable feedback. I have a desire to start my own business, but I'm unsure which direction to move in. After quite a lot of research, options that I'm personally interested in are eCommerce, SaaS and YouTube.

I know that you start a business based on a problem you find. However, the dilemma I am facing now is that I don't know which industry to look for problems in. In other words, I am not sure what should I dedicate myself to :/

I read somewhere on the internet that your business should have a meaning to you (something you'd do even for free) and be able to bring wealth. Is that good advice?

Have you had a similar experience? How did you decide on a business direction?

I am open to any feedback, whether from personal experience or professional perspective. Any advice or insight is extremely valuable for me.

Thank you in advance for your support and advice!

Honestly I think that e-commerce can be a really solid business for people who are just starting off. Though sourcing can be difficult, and more so if you're selling consumables, and you will need a few grand ($1-3K) to run ads and source product. But you can start by spending $50-$500 on ads.

What hobbies or interests do you have? Write a list of as many of them down as you can - stuff that you really obsess about and know the lingo for. Then go to amazon and find related products. See why people buy, then make a shopify store and make mockup products for it, then see if you can get traffic to your site with facebook ads. If you get some traffic, then you can look into actually sourcing the product to sell. You want to spend as little money as possible until you have good reason to believe that people will actually buy from you.

You can use tools like mangools, exploding topics, or google trends to see how much traffic search terms get. You can also check competitor websites on similar web to see how much traffic they get. Copy what competitors do and add your own unique twist. You can see what people like and don't like about products from reading amazon reviews.

 

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[BizyDad]

I did this write up for exactly this kind of situation. Hopefully this will help you sort through your options.

GOLD! - IDEA - So Many Ideas, How To Choose? A Simple Guide To Getting Unstuck

Over in @Antifragile 's thread about scaling up in business, @mikecarlooch and I had an exchange. You can read it yourself starting here. Basically, he was saying he has a bunch of ideas and doesn't know where to start. I've had this chat with several people lately, and thought I could expand...

www.thefastlaneforum.com

 

[WJK]

I am facing an important decision, and I am looking for valuable feedback. I have a desire to start my own business, but I'm unsure which direction to move in. After quite a lot of research, options that I'm personally interested in are eCommerce, SaaS and YouTube.

I know that you start a business based on a problem you find. However, the dilemma I am facing now is that I don't know which industry to look for problems in. In other words, I am not sure what should I dedicate myself to :/

I read somewhere on the internet that your business should have a meaning to you (something you'd do even for free) and be able to bring wealth. Is that good advice?

Have you had a similar experience? How did you decide on a business direction?

I am open to any feedback, whether from personal experience or professional perspective. Any advice or insight is extremely valuable for me.

Thank you in advance for your support and advice!

Let's start at the beginning. Have you ever worked? What have you done?

From your post, I take it that you have just finished your educational track and now you are at the point where you are expected to go to work? So, you have decided to start a business?

If my reading between the lines is correct, then you need to get some real-world experience under your belt BEFORE you start a business. Starting and managing a business takes some skills that you can't learn by reading a book or sitting in a classroom. Or that's what I have learned from the school of hard knocks. And yes, I've gone to school a lot. I have 4 college degrees including my Juris Doctorate.

 

[makileth]

You're creating a business not a hobby. In my opinion, you want to be very competent at what you do so that does involve some passion. But, I think "falling in love" with your product can be very dangerous as you end up refusing to listen why customers don't want to buy what you're selling.

I know several successful businessman who admit they had no interest in what made them wealthy. I don't want to put words in MJ's mouth, but I believe he has no love for the limo industry.

I would say the key question to ask yourself is what can skills do you have right now to solve problems?

Identifying problems is easy. Solving them can be a bit more challenging. If I could figure out to make a cheap and affordable EV charger that could take a Tesla from dead battery to fully charged in 5 seconds, I'd be a billionaire. Problem, is I have no idea how to do that.

yeah, that makes sense. I doubt anyone who has made millions selling bricks had such a passion that he'd be sleeping with them lol. The example with Tesla is nice. Thanks for your reply!

 

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[makileth]

Let's start at the beginning. Have you ever worked? What have you done?

From your post, I take it that you have just finished your educational track and now you are at the point where you are expected to go to work? So, you have decided to start a business?

If my reading between the lines is correct, then you need to get some real-world experience under your belt BEFORE you start a business. Starting and managing a business takes some skills that you can't learn by reading a book or sitting in a classroom. Or that's what I have learned from the school of hard knocks. And yes, I've gone to school a lot. I have 4 college degrees including my Juris Doctorate.

Yes, I freelanced for about a year doing 3D commissions, but the sad truth, this field isn't lucrative. The pay is laughable and the competition is crazy.

About the educational track, you've guessed it right! Graduated a week ago (Associate's degree, Ukrainian college)

Now I want to change direction but have no idea which path to choose, I guess I should tackle different things one by one and see what actually works for me

 

[WJK]

Yes, I freelanced for about a year doing 3D commissions, but the sad truth, this field isn't lucrative. The pay is laughable and the competition is crazy.

About the educational track, you've guessed it right! Graduated a week ago (Associate's degree, Ukrainian college)

Now I want to change direction but have no idea which path to choose, I guess I should tackle different things one by one and see what actually works for me

Start with something simple where you can make a profit or break even. You're not there where you can start your company that will make you millions. Try freelancing. Try sweeping your neighbor's walk. Try getting a job... You must learn to walk before you run.

yeah, that makes sense. I doubt anyone who has made millions selling bricks had such a passion that he'd be sleeping with them lol. The example with Tesla is nice. Thanks for your reply!

You don't have to be passionate about the product. You must be passionate about how to build and maintain a business. The nuts and bolts of "how" are the key.

All businesses have commonalities. For example:

Accounting is just that -- accounting. Math hasn't changed in thousands of years. The biggest change is that computers have made those numbers easier to crunch. But, if you don't understand the concepts and if you are not willing to do the daily paperwork, or hire that task out, you will fail.

If you do not know how to convert or take care of your customers, you will fail. And that's after utilizing the skills to locate those customers in the first place.

Creating and running a business involves complex skills that you will not acquire overnight or at school. You should learn the basics in school. Then you learn the habits and the day-to-day activities in the school of hard knocks.

I got an early start on all of this. I've been working since I was 11 years old. I was the enterprising kid in my neighborhood who was always available to do any job they had for me. And I'm still working. I'll be 70 years old soon. I'm at my desk today, on a Saturday, doing my paperwork and bookkeeping. Yes, I can afford to hire someone to do it. (My assistant is off today, so I am alone in my office with my service dog.) Why do I still do my own bookkeeping and accounting? I hate paperwork, BUT, I'd rather do it myself. I have seen friends lose big bucks from turning that job over to someone else. I don't want sticky fingers in my bank accounts!

Also, today is July 1st. By being here today, I'm collecting rent from my tenants. I not only get my rent, but I also get to talk the people for both personal contacts and to hear about any problems. Everyone here knows I am a real person, not a faceless corporation, who knows each and every one of them. I know their stories and their challenges.

 

[Two Dog]

I read somewhere on the internet that your business should have a meaning to you (something you'd do even for free) and be able to bring wealth. Is that good advice?

Is it good advice for accomplishing *what* for *who*? You're the only person who can answer for you.

If you're willing to do something for free, you'll almost certainly do it for free even when there's no market for it. That's the essence of the problem with "follow your passion." It inherently assumes that by making yourself happy and satisfied that riches will rain down up on you. That's not how anyone ever made real money. The only thing you should be interested in doing for free is spending time to increase your knowledge and skills for earning money.

Any number of people will quickly point out exceptions to the rule. Big deal. Winning in business - as MJ states very eloquently in the first book - is about increasing the probabilities of being successful. There's might be a highly successful surfing instructor who lives year round in Colorado, but the probability of success is much higher for someone who actually lives where people surf. It's an intentionally dumb example because working against it is equally dumb. That's why "find a market where other people are already making money" is standard advice on TFF.

Pick the first item on your list, dedicate 25 hours to it and see what happens. You learn an immense amount.

 

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[LuisovvV]

Also, you don't need to be solving a huge problem in an original way. I know a guy who became a millionaire because he found out the only company in town that painted parking lines had a massive backlog...so he started a company that painted parking lot lines that had no backlog!

In fact, I think some of the best advice for budding entrepreneurs is found in the E-Myth: look at existing successful businesses and think if you can "franchise" their approach without actually buying a franchise.

This is really good advice thanks alot