According to the U.S. Bureau of Labor Statistics 2021, nearly 20% of businesses fail in the first year. And nearly 50% of businesses fail within at least the first five years.
Of course, everyone wants their business to taste success. But, do you know why the failure rates are increasing year-on-year? Majorly because of the business idea. Yes, some businesses may suit you and some may not. Undoubtedly, choosing the wrong business idea will end up in failure. Thus, we’re here to help you with choosing the right business for yourself.
Here are some of the factors that you need to contemplate before choosing your business. This will help reduce your chances of business failure.
5 Important Factors to Consider in Choosing The Right Business
- Skills and passion
The business you choose should relate to your skills or passion in one way or the other. Without the skills or passion for the business idea, you cannot survive in the world of selling.
Along with skills and passion, you also need experience. Because only experience can educate you. It imparts ground or practical knowledge of the products and services that you’re going to sell.
“Success is not the key to happiness. Happiness is the key to success.”
- Albert Schweitzer, a german-French Philosopher
So, love what you do! And your business will be successful!
- Demand for the product or service
For any product or service to get sold, it requires a demand (the need). So, before picking a business idea, you need to analyze whether the products have a need in the market. If you’ve not learned the law of supply and demand so far, never mind. It’s better late than never. Go, learn and then start selling products and services that have demand.
- Work-family balance
Unless you balance your family & business, you cannot sail through the journey of your life. Most successful business owners say that there is a family behind every successful entrepreneur or business. The saying is so true that your family gives you the happiness and the motivation to run your business.
Thus, choose a business plan or idea that allows you to spend quality time with your family or friends.
- Investment and ROI
Agreeable that business investment is not just about the money or financials. It is also your time, knowledge, skills, experience, and effort. But, ultimately what bothers the most to you, your employees and society is the revenue.
So, choose a business that can give you enough returns in terms of revenue for the investments you’re putting in.
- Business Analysis
A proper analysis of the business idea, sector, and industry is crucial. It increases the probability of your business’s success. For example, perform a SWOT (Strength, Weakness, Opportunity & Threat) analysis. It helps you to understand the possible outcomes of starting a business with the idea you have.
Without such kinds of analysis, your business is an absolute waste of time, money, and effort! Do not regret it anymore.
Conclusion
These above said five factors may seem limelight to you. However, there are a lot more important factors that play a role in choosing the right business for you. So, start scouting and keep learning!
Above all, remember to remain patient until you taste the success of your business. Do not quit the earliest or before your business gains momentum.
Best wishes for the new start!
