Deciding which small business to invest in is only part of the equation. The first and most important step is to find a business that is a good fit for your personality, which has a direct effect on your entrepreneurial style and how successful you will be with your business.

Determining your entrepreneurial style requires you to take an honest look at your business skills and motivation to start your business. For example, if you don’t like social settings and aren’t comfortable talking to people, it’s not a good idea to invest in a business that requires constant face-to-face interaction with the buyer. Some businesses to consider starting if you find yourself in this category may be cleaning services, commercial window washing, lawn care, and even janitorial services.

If, on the other hand, you enjoy networking and talking with others, direct sales services (business-to-business or business-to-consumer) may be the best fit for you. In addition to your personality and entrepreneurial style, there are other areas to consider before starting your own business.

Ease of Entry: Industries and businesses vary in the ease with which new competitors can enter. Some entry barriers to consider would be excessive saturation of companies that already offer the product you want to offer. Another major barrier to entry is cost. Will you have to save or take out a serious loan before you know what kind of profit to expect? What about the cost of education or licenses? These are all serious questions to consider. That’s why some of the best small businesses don’t require a lot of capital or experience and there is still ample growth in the industry for you and various other business owners. However, just because a good business doesn’t require a lot of capital or experience to start doesn’t mean that you won’t eventually have to spend some time and capital building your knowledge and experience in the field. In order to continue to grow and provide the best service, you will need to invest part of your profits in the business and in yourself.

Startup Capital – Many small businesses require thousands of dollars to get started. Many of us want a business to free up our time and generate the income needed to support our families. Businesses that require massive capital take much longer for the business owner to earn a return on income. They also require much more time away from family and other leisure activities. There are several small business owners with franchised restaurants and other businesses that were capital intensive and are now reaping the benefits of all the hard work they put into it. However, many will also tell you that it came at a great price: time with family, friends, and the sacrifice of personal development. The strange thing is that these are the exact reasons why people start their own businesses.

Before starting your own business, be sure to develop a well-thought-out business plan that outlines what you hope to get out of this business and what resources, including time, money, etc. plan to use or need to make your business truly profitable and give you the free time and other benefits you want.

Ability to make money when you’re not around: In order for you to own your business and not own it, you need to find a way to ensure that your actions can be replicated. Whether it’s an insurance agency, florist, or network marketing company, it’s very important that you can leave that business for a day or even a month and know that it will still run smoothly and make money for you.

To do this, it is imperative to have a system in place that allows your business to continue without your presence. You can do this through employee recruitment and development that will allow your workers to become role models of what you do and contribute to the business in terms of service and profit. All employees, through the resources they provide, must in some way bring value and profit to your business. If they don’t, you must train them or terminate their position.

One important thing to consider in encouraging your employees to generate profit for the business would be to reward them with incentives for certain behaviors, such as excellent customer service or specific sales results. Determine what kind of incentives will motivate your employees and what kind of actions you would like to reward. Calculate, track, and compare the cost of incentives, as well as other expenses associated with hiring an employee, with the profits earned by the employee’s business.

Another option is to consider looking for a business that has a proven system for doing business and making money without the expense of hiring employees. In other words, find a business that you can replicate or copy that uses an automated email or internet marketing campaign. Remember, though, that while you can save by not hiring employees, you’ll most likely have a higher marketing spend than other small businesses. If you are unsure of the cost of these types of campaigns, do an internet search to compare prices for companies that offer this type of service. If you choose this option, it’s good to have at least three different types of automated leads coming into your business. For example, take note of the monthly cost of postcard, survey, or email marketing campaigns. This will give you an idea of ​​what kind of expenses to expect if you choose this route. Whatever you decide, make sure you have a plan that allows you to grow your business without tying you to the office or computer all day.

Companies that keep giving through “Residuals”! – The best companies continue to reward you with profits by giving you return or residual business. Residual income is earnings that keep paying you over and over again at certain intervals as a result of the customer continuing to use your service or product. With many companies, you don’t need anything more than a great product. The business continues to renew itself because customers value the product, need the product, and cannot get better service, prices, etc. through any other company. Although these businesses and services definitely exist, I encourage you to always strive to provide superior service. If something changes in the market or industry, this ensures that most of your customers will stay with your company not only because they value the product but also because they highly value the service. With other businesses, it’s a given that you’ll need to continually serve your customers to stay in business and continue to receive residual payments. The key is to double down on your work habits, either by hiring an employee or having some kind of system that delivers services and products through an automated service.

The Product: First and foremost, the products being sold must be good standalone products. This means that the product could sell itself because people really need and want this type of product. There are countless network marketing and direct sales companies that are based only on the compensation plan or building downlines, and not on the product itself. These type of companies run very fast. If the product or service is not valuable enough to sell on its own, you will have a very difficult time building and growing that business.

Attitude – Finally, you have to be passionate about whatever it is you are selling or doing. If so, you will be more eager to share your business and service with others. You cannot be successful if you are not proud of what you are offering. For this reason, choose a business that provides a service or product that helps others or brings joy to their lives in some way. I would personally like to thank all the pizzerias in Indianapolis. They bring so much joy to my life because nothing makes me happy like a good slice of pizza. Do you see where I’m going? Your idea or business doesn’t have to change the world, but if there are people out there who you know would derive value and joy from whatever it is you’re offering, then that’s a big step.

To truly choose a business that is profitable, take a close look at what you are getting yourself into and what you will have to sacrifice for the business. Sometimes the business you always dreamed of would free up your time and give you the life you always wanted can actually rob you of the things you value most.