How to choose the right small business for you

If you have always dreamed of becoming a small business owner you may have an idea of what type of small business you want to run. However, many small business owners come to the realization that they want to run their own business through other means. Perhaps you have a hobby that you want to turn into a business or you have lost your job and need another source of income. Starting a small business can often be the result of these types of life changes. However, before you simply rush out and begin setting up your small business it is important to go over certain factors. Here is what you need to know about how to choose the right small business for you-

- What is your expertise? It may surprise you to learn that many people make the mistake of setting up a small business that they know very little or even nothing about. Keep in mind that while it may seem glamorous to make wedding cakes or book luxury travel if you have never stepped into a kitchen or even stayed at a luxury resort you may find it difficult to get your small business off the ground. It is also important to understand that you don't need to be an expert at your small business but you do need to know what you are doing. If you are still looking for an idea for your small business a good place to start is by reviewing your own expertise.
- Do you want to work full or part time? Most small businesses require a great deal of dedication and most people dedicate themselves full time to getting their business going. However, there are certain small businesses that can be set up to provide a healthy part time income. You need to carefully consider what type of income you are looking for and how many hours you want to dedicate to your small business. If you are only looking to supplement your present income or just want to work part time then you need to pick a small business that is conducive to that.
- How much money do you have? Most small businesses require a great deal of money to get them off the ground and running. However, just like anything else there is a range. Some small businesses will require substantially more working capital then others. If your financing options are slim or you just want to convert a hobby into a small business then your options will be much more limited. As your options for financing grows then your options for what type of small business to open will grow, as well. In addition, you need to keep in mind that if you are planning on working at your small business full time you will need to have at least enough money to support yourself for a year. The reason for this is that most small businesses are not profitable for at least a year or more.
- How long do you plan to work at your small business? While most small business owners go into business with the idea that their small business will be their career there are some small business that are more temporary in nature. If you are considering opening a small business that responds to a trend or fad then your business plan will be much different then if you are looking to open a small business that will be around for years to come. Knowing how long you plan to be in business will be a crucial factor in what type of small business is right for you.