Not sure what type of business to start? Read this!

If you have decided to start a business, chances are that you have also probably thought about what kind of business exactly you would want to go into. More importantly, it is expected that you have also given a lot of thought to what type of business as well. Whichever type you choose, there are financial implications to consider.

Would you want to start a business from the scratch? Would you want to buy one? Would you want to go into some sort of partnership? Here is a guide to help you make the best decision.

1. Starting from the Scratch: This is often the most common method for starting entrepreneurs. This works for you if your product or service offering is new to the market. This also works if barrier to entry in that field is relatively low- cost-wise.
2. Buying an Existing Business: While this option may not be as cheap as the first option, it works perfectly fine if you have enough money and the business already has specialized equipment, a trained workforce and/or if the industry you want to do business in requires intellectual property which would take you some while to build. Find a business which ticks all the boxes and which- in addition, is profitable and buy.
3. Purchasing a Franchise: Another option- which may take the best of both previous option, would be to purchase a franchise. With this option, you find a profitable business with a strong brand and market presence. You would, typically, be provided with a lot of the tools and resources necessary to getting your business started. Your focus will then be to successfully run and manage the business.

• 4. Starting a Home Business: If what you do does not involve heavy capital, and is something relatively easy to do from home, then there is really no reason why you must absolutely get an office space- at least, not just yet. If you bake, or make dresses, or are a free-lancer or a consultant, this option would work best for you.5. Opening a Part-time Business: Some of the time, while it sounds exciting to start your business, it would be smart not to jump out of your day job just yet- at least, until you are able to gain sufficient customers and relevant experience. If you are thinking of making a business out of your hobbies, this is likely the best method for you. You already love doing it- now, do it and earn extra cash. Gradually, if done right, you would soon be earning enough to wean you out of your paid employment.

  6. Getting a Co-Working Space: Co-Working Spaces are, more-or-less the rave now. If you are a free-lancer in the creative industry and you do not have space for your own office just yet, yet do not like the idea of working from home, a co-working space would be a great idea. The added advantage is that you share the space with other creatives and replicate office working conditions while also controlling your own time and minding your business.

  7. Joining a Family Business: Finally, there is the option of joining a family business. While this may not appeal to everyone, for sundry reasons, if this is something you have thought deeply about and conclude will work just fine for you, get right ahead with it. You will be in a supportive environment, and mentored by people who truly love and care about you as much as they care about the business. That’s a win-win.

  Whichever option- or combination of options you choose, a whole lot depends on your will to succeed and commitment to excellence and never-ending improvement.