24 Feb Business Ideas for Novice Entrepreneurs
In this post, I want to discuss business ideas for entrepreneurs who are just starting their first business. It is important as a first-time entrepreneur, to choose the best business idea. I am going to explain to you the businesses that as entrepreneurs have the most chance of success and which ones you have to avoid as your first business.
Best entrepreneurial business ideas
Here are some tips that can help you when starting out for the first time:
The best entrepreneurial business idea that I recommend is franchised. These are business models that have already been successful, and somehow found the recipe for success. With a franchise, you can increase your chance of success by up to 80%, unlike starting a business with no experience. You can go to franchise shows to get an idea of how they work and the prices.
Well Located Businesses
In our list of business ideas for entrepreneurs, we have to consider having a great location. For example, in the previous post about business ideas for Mexico, I commented that a bad business idea is to open a grocery store or small store. However, if well located, it can be a successful business. Preferably, it must be next to (or less than 50 meters away from) a neighborhood, residential area, or subdivision. Therefore, as a beginning entrepreneur, think carefully about the location of your business.
Starting an internet business means putting up a website, and generating income by selling a tangible or intangible product (such as an ebook) or by advertising. This business idea for entrepreneurs is recommended for the following reasons: 1) the investment costs are very low, just by investing in a hosting service to store your information on the internet and buying a domain, in total per year it can cost up to $60 dollars, 2) learn how to sell, and how to serve customers, either by mail, phone or chat and 3) Learn the characteristics of the entrepreneur such as persevering, not giving up, getting up in the face of problems, etc.
Business In Which You Already Have Experience
There are many people who worked in a company for years, and now that they retire. They need to generate new sources of income. For this reason, in entrepreneurial business ideas, we must consider that all this experience is invaluable to start a company. For example, a person who worked his entire career as a sales agent has these strengths: he has contacts, social relationships, knows the industry, knows who the suppliers are, knows how to negotiate, etc. He also doesn’t think he needs to retire to do it. With 3 to 5 years of experience, he will have enough skills to understand how this line of business works and open his company.
Business With Partners
Starting a business alone is difficult, due to the number of tasks to be carried out, the time, and the motivation to continue moving forward. A good business idea for entrepreneurs is to get a partner. It can be a friend, family member, or acquaintance who is interested in starting a business and/or who has the necessary experience to implement it. Before working with a partner, limit the roles, responsibilities, and investment of each. Have clearly defined what you are going to contribute to the company, and how you are going to work as a team.
Invest Too Much Money
A true story: I had a college roommate who had quite a bit of financial resources available. He decided to start his first business with an investment of 1 million dollars… in 2 years, he had closed and liquidated all the assets to cover his debts from him. With this, I want to explain to him that despite the entrepreneurial business idea he has, he does not invest too much money. He understands that the probability is against him. And therefore he has to fight against the irrational instinct. To believe that the more he invests, the more he earns.
Not Making A Business Plan
Many people (if not most) think that making a business plan is like a formality; it only serves to ask for a credit and period. However, it is not about making a plan for the final product. But for the process of knowing how your business will work. And determining through financial analysis if it is viable in numbers or not BEFORE you invest a single penny. Therefore, among the business ideas for beginning entrepreneurs, you have to develop your business plan to be sure that your idea is worthwhile.
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