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What Kind of Small Business Should You Start?

Small Business Runs the US Economy

Do you have a gut feeling that you should start your own small business but just aren’t sure what kind of company to create? You’re not alone. Plenty of folks with an entrepreneurial spirit realize that it’s time to venture out and build a small business, but have not a clue what kind of product or service to sell. There’s a way to find out.

All you need to do is take a long, honest look at four areas of your life. By assessing your talents, finances, your desires, the state of the market, and other factors, you’ll be on the right track to making a decision. Keep in mind that there’s probably no perfect kind of small business to open. A lot depends on what you are happy doing, how the economy is going, what consumers are currently wanting, and many other factors. Here are some areas where you can begin the search.

Your Talent

If you have a unique talent or highly developed skill, take that as a clue. For example, if you possess top-notch carpentry skills, have several years of experience as a tax preparer, or earned your keep as an on-call nurse in years past, consider building your new enterprise around your expertise. For people in mid-career, consulting in their chosen field is often an apt choice because you can work alone, build up a client base, and set your own rates.

Your Finances

It’s possible that your choices will be somewhat limited by your financial situation. But whether you have oodles of cash in the bank or are currently living from paycheck to paycheck, it’s important to reduce monthly expenses as much as possible. This wise move helps you free up additional funds that can go toward the operation of your new venture.

What’s the first step? If you are currently paying on a student loan, for example, check out the latest student loan refinance rates to see how much you could save. Many entrepreneurs are shocked at how much they can save by refinancing their existing education debt through a private lender. It’s even possible to get lower interest rates, more lenient repayment terms, and an overall better arrangement when you refinance.

The Market

Let consumer demand be your guide. Think about, and spend time doing research on, what products and services are in high demand. For instance, in the post-COVID era, a couple of the more in-demand services include delivery and computer repair. If you’re lucky, one of your skills will align with something that consumers are currently wanting a lot of.

A Dream

For a moment, forget about your experience, the market, and finances. Search your soul and see if there’s a dream still lingering from perhaps years ago. Have you always wanted to be a massage therapist, IT consultant, or tax preparer? If there’s a burning desire smoldering inside you, see if the dream is a realistic one in today’s market and then take whatever steps are necessary to make it happen. Sometimes, dreams do come true, but you still have to plan for them.

Published: April 22, 2021

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justin weinger

Justin Weinger

Justin Weinger is a 15-year corporate finance veteran, with a shared passion for blogging and content creation. He has spent 15 years in various industries, including automotive manufacturing, automotive financing, banking, consulting, and healthcare. When he isn't working, or blogging, he is a married man of 8 years, and a proud father of 3 girls.

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