4 Tips for Choosing the Most Viable Business Idea

If the prospect of becoming an entrepreneur excites you, you might be wondering how to choose a business idea that you can stick with. Whether you are multifaceted and have a hard time narrowing your interests or you’re having trouble creating a business out of a general desire, there are some ways you can hone in. Statistics show that 70% of small businesses break even or turn a profit. You can avoid being the other 30% with a bit of preparation. Here are four ways to choose the most viable business idea.

1. Evaluate Your Skills

The first step to choosing an idea is evaluating your skills and experience and being honest about where you shine. If you are introverted and your business idea will require a lot of networking or door-to-door sales, you might get burned out before getting your company off the ground. At the same time, you may have an excellent talent for numbers but don’t want to run a business that centers around finance or accounting. Make sure you think about where your skills and desires align, and you’re on the right track to a niche that is well-rounded.

2. Think Outside the Box

As referenced above, you’ll want to find an area where you can offer something unique. This will set you apart in the market and naturally draw more customers. If you enter a highly competitive market without a singular proposal, it will be more challenging to convince people to use your product or services over others. Take your list of skills and desires, and narrow it down by which ideas you can put a unique spin on.

For instance, if you want to enter the clothing market, your unique offering would be your designs. You can create a logo that sets your company apart and makes it more recognizable. To do this, use an online logo design tool with premade templates to create a logo design for clothing. You can customize them with your own colors and fonts to fit your needs.

3. Do Your Research

When you think you know what direction to go in, you’ll want to conduct some market research to make sure your idea is workable. There are two kinds of research that will be useful to you, primary and secondary. Primary research comes from gathering customer data directly, while secondary research comprises gathering statistics and other available information. Doing this will give you a good idea of who your customers are and what they are looking for.

4. Gather Resources

You don’t have to rely only on your own resources to start an enterprise. With a great business plan, you can attract investors and multiply the funds you need to run your company. It is important to be conservative, though, so that your company doesn’t fail due to funding. Make sure your plans have plenty of wiggle room for unforeseen circumstances.

Another resource to gather and utilize are services that can help you get your business up and running. For example, an online formation agency can help you file your Rhode Island LLC paperwork, which will protect your personal assets in the event of legal litigation and offer tax perks. Similarly, if you need help building a website, you can hire a freelance web developer to take care of this task, an essential one for drumming up business for your new venture.

By following the tips above, you will be on your way to choosing a concept that works long-term. Remember to be realistic, but don’t forget the passion behind why you decided to start a business in the first place. Planning will ensure you’re ready for anything thrown at you.

The Greater Newport Chamber of Commerce offers a variety of resources and opportunities for making your business stand out in our community. Join us today!