So you want to start a business and your looking for the best business to start for a beginner in 2011. I’ll say right off that being impulsive when contemplating the best business start-up will likely be a recipe for disaster and here’s why. As a beginner you don’t have a clue what your business idea will look like in reality and there are ALWAYS unintended results, complications,problems and opportunities that will emerge with any new business start-up. And depending on the business you choose to start, along with how you start it, will either leave you in a rough spot or space where you can capitalize on the best options along the way.
5 Factors for Picking the Best Business to Start
Starting a business is not an event (with few exceptions) and most beginning entrepreneurs tend to look at it that way. Granted most entrepreneurs spend way too much time in the business planning phase, but they are still planning for an event rather than and ongoing reality. Last year I wrote a post on some of the key factors to look for when starting a business for the first time, they included:
- Startup Costs.
- Resource requirements in terms of time and money.
- The upside.
- Is the business an area of passion.
- The downside.
Far and away the most important factor in choosing the best business to start as a beginner is the downside of the business idea. Yes! What could you stand to loose should the business fail? The downside is what will have the most impact on you as an entrepreneur and it will be the determining factor in whether you life to fight another day. Listen if your just starting out on your entrepreneurial journey you need a couple wins under your belt, this alone is very powerful in creating a successful entrepreneur. Sure we learn more from our mistakes and our losses, but you need to be able to shoulder those losses and if your putting all your eggs in one basket and it gets crushed, what do you do now?
Remember the most important factor in picking the best business to start is the downside of that business. Start up costs and resource requirementsare probably a close second and they are obviously connected to the downside as well. Knowing what the costs (both fixed and variable) is another important step in the beginners start up journey. Optimism is not an asset when your fleshing out the practical realities of your new start up as a beginner, though optimism is powerful, it has it’s place.
Another of the 5 factors in choosing the best business to start is the passion factor. Most successful small businesses will struggle at one point or another and the passion you feel for your 2011 business idea is the fuel that will get you through tough times. Having a vision and goal of what you want to create in terms of lifestyle, money, and success is important will steer you to success, but passion is what will cause you to pick your head up and continue on when the unexpected happens (and it will).
The Upside in your business idea is the last factor I listed, though it will likely be the motivator and have a front seat in your mind as the most appealing factor in choosing the best business to start and the best way to start it, I get that. The thing is, the upside of a business idea is theory at best during the start up phase and it is much more possible and intelligent to determine the actual downside and evaluate the other factors first.
My Thoughts on The Best Business to Start as a Beginner
I feel that the best business to start as a beginner is a home based business idea. Also termed online business ideas or Internet business ideas, a home based business idea more easily fits the 5 factors than most traditional business ideas. Home based businesses have much lower start up costs, they require less cash to run, they allow for a more flexible time schedule, and have a much lower downside. The upside of a home based business idea is variable just like in a traditional business. There are many home based businesses that turn a nice profit and many of them do it in the first year, which is almost unheard of in the traditional business world.
I do business in both the traditional business world and the home based business world. Most of what I do in the traditional business world has to to with the commercial construction and food industries, while my home based businesses mostly consist of web publishing.
Why I Love Home Based Businesses
Of all the things I love about home business ideas, I’d say the top is passive income. Passive income make sense to me and creating on the Internet is the only way I’ve ever done it. I understand you could start other businesses that have passive income streams, but most require a lot more cash than I’ve ever been comfortable throwing at a start up.
If your looking to start a business in 2011 I recommend considering a home based business idea as the best business to start as a beginner for these reasons. Starting a business doesn’t mean you have to bet the farm or risk loosing your shirt. Many home business ideas, some of the most successful business ideas I’ve started, didn’t require hardly any start up capital and the expenses are ridiculously low.