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How to Select a Business

There are two approaches when selecting the most suitable business for you. The first one is the traditional approach. This kind of approach is that of a scientific and methodical process. Generally, the approach includes identifying the customers’ need, researching the market, and making a business to fill it.

On the other hand, there is the modern approach where you will just have to follow your instinct. You will just do that which you love most and money will just follow.

Process of the Traditional Approach

In a traditional approach, you will have to choose first the industry that you are interested. Following this is to research the types of business and different business models included in the industry you have selected. Then conduct a market research so as to see if there are problems that needs to be resolved. Then have an analysis of the competition and develop a business plan. If needed, find a lender or investor and then start your business.

Disadvantages of Traditional Approach

The usual problems in this type of approach is that it is potentially more inclined to be expensive as well as labor intensive to even determine if you will pursue your business or not. Another disadvantage that this approach brings is you will only realize that you are doing things you actually do not want to do and you realize it too late already.

Modern Approach

This approach, in the past few years, has become very popular since the release and success of the book ‘do what you love, the money will follow’ by Marsha Sinetar. However, while it may sound good, as Dr. Marty Nemko stated, numerous people followed their love and passion but still, the money that they have earned is not enough to even pay their loans. The problem with this approach is that many people impulsively go after their dreams without even first considering the essential preparations of starting a business. Instead of doing what they love and the money will follow, it has become doing what they love to the extent that they got broke and they do not have any other choice but to do nothing.

The usual scenarios in this kind of approach is when one is passionate of something however he or she is the only one interested in it. Consequently, no one will buy their product or no one will render their services. You must bear in mind that if you are going to follow this kind of approach, you must also consider what your prospective customers love too. Another scenario is when someone established a business which has already been thought by someone else. And a much worse scenario is when there are already numerous people who have already established one’s business idea in their locality. A market with a highly competitive environment will be a great disadvantage to you. Therefore, when you are planning to choose a business, make sure that you have really thought about it seriously.

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1 Comment

  • Suman said on January 6, 2011
    Sir I want to start computer hardware, software and service center with cyber cafe in my city . plz give some idea and advice ?

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