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Becoming an entrepreneur is a big decision. Many people have ideas about the type of
business they’d like to start, but if you aren’t sure yet, don’t let that discourage you. There
are some ways to discern what type of business is most suitable for you. By evaluating your
skills honestly, pursuing a business you’re interested in, and being mindful of the
challenges involved, you can succeed.
Here are some tips from DoughMain Financial Literacy Foundation for getting started as an
Your Area of Expertise Is a Good Place to Start
The business you’re probably most suited to is the one you’re already knowledgeable
about. Look at your prior work experience as well as any academic achievements you may
have. Even if you aren’t interested in that industry directly, you may have acquired
significant knowledge about related industries. Pursuing entrepreneurship in an industry
you’re familiar with saves you a lot of time that you'd otherwise spend learning about it.
Nonetheless, it’s still preferable to pursue a business related to something you’re
passionate about since you’re more likely to enjoy the work and can weather obstacles
Evaluate All Your Resources
Even if one industry seems most favorable to you, there might be significant barriers to
entry that can prove difficult for you to surmount. Businesses with investment or licensing
costs that are much higher than you can afford or that require specialized education you
don’t have probably aren't good starting points. If you can’t pursue the business of your
choice at first, consider starting a business in an industry with a lower barrier of entry to
use as a stepping stone.
It’s common to have a tight budget when starting a business, which means having to get the
most out of every dollar you spend. Digital marketing via social media is a great way to get
the most for your money, especially with free tools available to support your efforts. A free
online banner creator, for example, can be used to give each of your various social media
profiles a consistent graphical look. You can customize a template with images and text,
plus resize it as necessary, for a great banner to feature on your accounts.
Ask Yourself if the Business Is in Demand
It may not be wise to start a business in an industry that’s highly saturated. If one type of
business is highly common in Texas, you may want to consider trying something else. As a
new business owner, you're less likely to have the experience or resources needed to break
into extremely competitive markets or the advertising dollars required to be noticed. It’s
typically easier to enter a niche market where the business in question is in demand but
not yet oversaturated.
Get Your Paperwork in Order
As an entrepreneur, make sure you’re always legally protected by reducing the liabilities
involved when dealing with customers, the state of New Jersey, or the federal government.
Starting a limited liability company (LLC) is often the simplest and most cost-effective
route for entrepreneurs and offers protection from certain personal liabilities while
yielding some tax benefits. Hiring a formation service or even filing the paperwork yourself
is typically much less expensive than using a lawyer to form your business.
If You Choose the Right Business, It Can Thrive
Being a successful entrepreneur is about hard work as much as strategy, and choosing the
right industry at the right time can be a big determinant of your success. Be honest with
yourself about the resources and time you have available, assess your own capabilities to
make the decision easier, and structure your business as an LLC so that you can take
advantage of legal advantages and tax benefits.
DoughMain Financial Literacy Foundation is a nonprofit dedicated to forging a financially fit
America by providing education to students. For more information, please visit our website or
contact us today!
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