I am often asked the question, what type of business should I buy? Or, I want to start a business but what is the best industry to be in? In short, if this is the first and only thing you are considering then my answer would be to go back to the drawing board. You really need to be considering what is driving this process, what is your motivation for starting or buying a business? If it’s not passion for a particular product or service or the desire to solve a specific problem then you might need to reconsider.
The reality is that the right business for you, will be completely different to the business someone buys. The proverbial one person’s trash is literally another person’s treasure. Buying into a business solely because it’s trending or is the booming industry at the moment won’t guarantee your success. The success of any business is determined by many factors.
Knowledge, experience, passion, capital, people and location. These all plays a part in the success or failure of a business. There must be a perfect equilibrium between these elements. If one is lacking then you will need to make up for it with the others. In some cases, that won’t even be enough.
Of course, you hear the story about the person who has done well in their new venture with little to no experience. What you probably didn’t hear about is the huge amount of passion, drive, determination, fearlessness that was required to compensate for the lack of knowledge and money. Just like there have been plenty of businesses started on money and knowledge that lacked good people and passion and in turn, did not succeed.
So when considering your new business a good place to start is to ask yourself. “What do you want to do? What skill set do you have that you can apply? What is your motivation – lifestyle, helping people, solving a problem, money?” Only then, can you find the business that works for you.