5 Dumb Mistakes to Avoid when Choosing a Business Idea
I have lost more than $4,000 in my quest to find the perfect business. Such a loss with a young family dependent and siblings looking up to you really kills some inner you.
I learned the hard way, and probably this article can help someone avoid similar mistakes when choosing a business idea.
Don’t expect a miracle.
I would probably be a millionaire if I had a nickel for every time someone said they want to open a business on an impulse. Miracles happen but not in business.
There are a lot of fundamentals that need to be considered. Apart from the deemed demand, how is the strength of supply? What are the barriers to entry? What is the industry missing, and how does your business intend to stand out?
We have witnessed remarkable innovations that have made tremendous improvements in our lifetime. Uber, 3-D printing, and blockchain are some of the innovations that have made life easier in the 21st century.
Businesses in existence for years have managed because there’s a need for their products and services. However, businesses operate at the mercy of demand and supply. Innovation is good, but it is a risk that may lead to poor decisions.
Could you keep it simple?
Business exists to solve an existing problem in a commercially viable environment. Complex business ideas have a high failure potential with a likelihood to scare potential clients away.
Simple ideas avoid the perception of defrauding and deceit.
Comply with the Law
Laws and developed to maintain order and level the playing field in business.
Therefore, as a business owner, it is expected to keep tabs with the requisite license and permits to avoid your business being shut down. Make sure that you attain a lease from your landlord.
Entrepreneurs have been constantly reminded to follow their passion when choosing a business idea. Passion is great, and a lot has been achieved with this desire. In business, though, these desires might rebound and blow in your face.
The passion for enduring the tormenting business process might not equate to a strong work ethic nor replace the skills required to run a business.
Business is a tough journey that owners need to foresee what they are getting into. These insights should assist you when choosing a business idea.
After so much loss during the Covid 19 pandemic, the need to save humanity from any loss is a welcomed move. Hoping readers will take heed of their choices and be considerate in their decisions.