Basics and Products

What Type of Business will you Run
The type of business you operate should complement the experience or training you already possess. When deciding on the business you want to start, take into account your areas of interest, as well as your past experience and technical or professional background.

The type would also be determined by your decision to be home based because there are obviously many types of businesses (such as heavy manufacturing or noisy activity etc) which you would not be allowed to run from home.

If you have little experience in the area you are interested in, it would be necessary to seek training before you begin. Write up a summary of your background experience and abilities, as well as your specific skills. Match these with the business available, or the type of business you are looking at.

After investigation, determine which type of business has the best potential in the current market-place. Decide whether the products or services produced by your business will have a demand in the market, also, whether there are many competitors.

Many people fail because they are in the wrong business, rather than operating the business wrongly.

Finalise your Products and Services
After consideration of your resources and abilities you would then need to finalise just what products or services you intend to sell.

"Any business that appears successful will always draw competition ..."

You would need to finalise the ideas you have, or the products or service you are going to offer. The test for any business idea is whether there exists a market for it or not. This usually comes to the fore when you are seeking funding from a lender and the lender asks you to prove if there are potential customers interested in the idea.

Many entrepreneurs start up with little capital, but with a strong belief in the products or services they intend to market.

You need to ask the following questions when evaluating your idea, product or service:

  1. Does it satisfy or create a market need?
  2. Will the product or service have a demand in the market-place and will that demand continue?
  3. How useful is your product or service?
  4. How unique is your product or service?
  5. How much competition is out there?
  6. How difficult is it for your product or service to be copied?
  7. Can your product or service be priced competitively?
  8. Has the product or service passed all the safety regulations?
  9. Do you have an edge on the market with that product or service?

You need to answer all these questions when you are determining what product or service you will be offering. Always remember that if your business is profitable, then it is bound to attract other competitors who will rush into the market and try to get some of the profit you are making.

Anything successful will always draw competition.

The advantage you have is that competitors need to catch up to where you are at, so if you plan well you should be able to keep ahead all the time and therefore maintain dominance of the market.