8 Questions to choose the Best Business Idea

In addition to responding to a market demand, your new business idea must fit your personality, needs and desires.

There is much talk about the importance of new businesses responding to specific market demands. It is a fact that the most novel or interesting product is useless, if there is no group of people who are looking for it.

In contrast, there is less talk about the personal dimension of entrepreneurship, that is, the need for the new company to respond to the tastes, abilities, desires and lifestyle of the entrepreneur, as well as other decisive variables for success or failure .

These are 8 questions that Bob Adams, director of the Business Town business course platform, suggests asking you to choose the business idea that best suits you. In this way, you can start your company with a more objective and clear vision, but also with greater confidence.

1. What kind of business do you usually like?

By identifying the turns with which you feel most comfortable, you can detect the type of company that you would enjoy operating on a day-to-day basis. The key is to think about the processes that you will have to move forward, not the final product or service.

And it's not always about maximizing your income. Many times, entrepreneurs seek to enhance their freedom of expression, interact with interesting people, travel, participate in sports activities, work with children, solve problems ... You can always outsource some processes, but it is necessary that you feel like the main business activity .

2. What aspects of your lifestyle are important?

Will that new business require you to travel frequently? Will it allow you to return home early or, on the contrary, will it absorb your day? Every company implies sacrifices, but some allow you more flexibility.

If personal or family time is crucial for you, you can think of a business idea that you develop on weekends or in your own schedules. Maybe one of these projects fits you to undertake without leaving your current job.

3. What skills and experience will you bring to the business and to what degree do you want to develop new skills?

Bod Adams advises you to raise awareness about the skills you have been able to develop in your training and work experience. But not only that: also answer honestly how much time you are willing to invest in your training.

All business ideas require new learning, but if you acquire them it will take more than a year, the advisor suggests choosing another project. Of course, there are associated skills that you do not have to master, but consider that you should hire the right staff to carry them out.

4. In addition to your skills and experience, are there other competitive advantages that you might be able to bring to the business?

It will be useful to think about the strengths that you can deploy to make them the competitive advantage of your company. It is about concrete skills or market knowledge. For example, your creativity or your ability to manage projects can be the difference for your business.

Another strength may be your connections. If you manage a wide network of contacts in a certain industry, it may be a good idea to start a business that takes advantage of them.

5. What kind of profits and growth potential would you expect?

Set the range of income you need and the term you can expect before the first profits. Most companies need investment and time to pay off their first fruits.

6. What is your risk tolerance?

Low-risk businesses are more likely to remain in the market, but tend to report lower income. In contrast, high-risk ones promise higher profits, but they represent a high possibility of making you lose money.

Risk is measured by the probability of success in sales, but also by other aspects such as technology, product development and the type of turn. The suggestion for the first business is to choose one that involves low risks.

7. Do you have the will to operate a complex business?

If you have already chosen the business idea that best responds to your strengths, tastes, lifestyle and expected utilities, it is time to ask yourself about the complexity you are willing to handle.

Think about aspects such as human resources management, government regulations and the number of people with whom you must interact: suppliers, distributors, resellers, sales agents.

8. How much money do you expect to invest?

Finally, it is necessary to establish the range of investment that you can exercise, either with own or third party resources. Many times, the entrepreneur decides only with this criterion, when it is important to have passed his ideas through the sieve of personal interests. After all, it will be you who carries the burden of the new business on your shoulders.