There’s no magic formula to finding a good small business idea. Whether a small business idea has the potential to be lucrative or even profitable depends on the answer to these questions:
- Is there a sufficient demand for your product or service? In other words, do you have reason to believe that there’s an abundant supply of available customers or clients for your products or services? One of the first steps to evaluating a potentially great business idea would be to clearly identify your target market and create a list of reasons that your prospective customers would want to do business with you instead of the competition. (And speaking of competition…)
- Is the marketplace already saturated with other businesses and entrepreneurs offering the same or similar services that you’re considering marketing? If the competition is too imposing or well-entrenched, then it may prove to be an uphill battle (or a losing battle) to try to penetrate that market or carve out a profitable niche. On the other hand… If your research and first-hand experience indicates that needs in the local (or global) marketplace are not being adequately met, then that might represent an untapped business opportunity for you. Even if there are other existing businesses that are already offering what you want to offer, there still may be the opportunity to effectively compete — based on factors like lower prices, more attractive payment terms, delivery options, wider selection, superior quality, better customer support and service, convenient locations, flexible business hours, or other features that can get you noticed and give you a competitive advantage. If the competition is coming up short in the all-important areas of customer satisfaction, convenience, quality, and value, then that might present an opportunity for you to step in and meet or exceed those unfulfilled expectations.
- Do you have the expertise, experience, and “people skills” to set up a business, market it, and consistently deliver a high-quality level of service? Evaluating your readiness to be your own boss hinges on a variety of factors, including your motivational intensity, your work ethic, your financial resources, and your organizational skills. Note: It’s always a good idea to consult with a CPA, an insurance advisor, and a business lawyer when setting up a startup business and anticipating future needs.
What Business To Start
Choosing the best business to start for your particular situation depends on your own personal strengths, skills, passions, and available opportunities. Taking the time to sit down and do a thorough self assessment can often clarity where you’re strengths lie and what products, services, or self-employment situation you’d be best suited for.
Here’s a list of 25 service business ideas and categories which may help you zero in on the startup business ideas that would best suited to your interests, qualifications, and competitive environment:
- Information technology
- Web development or graphic design
- Photography or video production
- Advertising and marketing
- Event planning
- Wedding planning
- Hospitality business
- Travel and tourism
- Catering business, restaurant, or food truck operation
- Farming, agriculture, and ranching
- Fashion-related or clothing business
- Vending business
- Janitorial or residential cleaning service
- Home care service
- Security business
- Building construction and contracting
- Real estate sales, investing, development, property management
- Business training services
- Employment or staffing services
- Financial services
- Legal services
- Transportation and logistics business
- Medical or healthcare practice
- Insurance sales
- Personal care services
If you’re considering starting any of the above service business ideas, one key to success (besides having relevant experience and personal contacts) is to have the ability to prepare a business proposal — one that highlights your professionalism, credibility, and qualifications.
To learn more winning competitive bids and presenting a convincing case for choosing you over the competition, read the article “It’s All About Trust”.*
Thanks for checking out my latest blog posts on startup business ideas and potentially good businesses to start.
Stay tuned to this blog for more tips, ideas, and resources on how to start a business.
Business blogger, freelance writer, marketing strategist