How to Start Your Own Small Business – Vital Questions You Need to Answer

When considering how to start your own small business, you need to begin with an understanding that there are 3 broad classifications of businesses.

3 Broad General Classifications of Businesses

  1. A purely internet based business (all business is transacted on line)
  2. A “face to face” business (ie- a restaurant , supermarket or car repair business)
  3. A business that conducts business “face to face” as well as on line (ie -travel, entertainment, toys, etc)

You will need to decide which of these appeals to you most to progress with becoming an entrepreneur

My recommendation to you is to consider starting an internet based business for the following reasons:

  • it can cost no or little money to begin such a business
  • it offers you the opportunity to start earning much sooner than a “face to face” business
  • it offers you the flexibility to work where you want, when you want and how many hours you want to work
  • It offers you the biggest long term upside

The volume of business conducted on the internet has been growing by leaps and bounds for each of the past 5 years. It is predicted that this growth will continue indefinitely. In the last year, amidst our current recession, the volume of global internet business has grown by more than 10%.

Specific Online Businesses

The next thing that you will need to decide when considering how to start your own small business is the specific type of online business.

I do not know what specific kind of work would be best for you. It could be on line retailing of a product you love and think is valuable. It could be publishing – writing articles for magazines and ezines.

For some it may be a business related to stocks and shares. (Experts agree that this is a good time for this because many stock prices are currently depressed below their real value and their prices will begin to rise this year).

For others it could be commodity or Forex(currency) trading. It could be buying and selling on E-bay. It could be affiliate marketing. It could be information marketing. It could be technology related- building websites, SEO (website optimization), or providing domain names. It could be advertising – providing copy for on line and off line ads.

Any product or service that does not require a “face to face” relationship (like a restaurant) can become a business for you online.

You will need to choose the type of business that most appeals to you.

Key Criteria In Choosing Your Business

What are some of the key questions to answer when choosing a particular business to start?

  1. Would I enjoy this business? Am I interested in the subject matter of this business?
  2. How much capital will I need to start my business?
  3. How long will it take for me to begin earning money from the business?
  4. How long will it take for the business to support me at my current standard of living?
  5. Does this business have the potential to provide me with the quality of life I aspire to within a time frame that is acceptable to me?

The number 1 thing is to choose a business that you will enjoy – something that you are really interested in.