Deciding to launch your own business can be an exciting time, and today, there are countless opportunities for making money and becoming self-employed. However, finding the right business for you can be challenging without asking yourself some key questions before getting started.

Match your skills

Before getting started, the first question to ask yourself is whether or not your desired business venture matches the skills or experience you already have. For most people, the first thing that comes to mind when they think about starting their own business is taking what they already know—or are currently doing in their present job—and branching out on their own.

Becoming frustrated in your current role and thinking ‘I can be doing this better on my own’ is a fairly universal emotion when it comes to people who decide to start their own businesses, so it makes perfect sense for this to be a starting point.

Side gig or full time

Next would be to consider how aggressive you want to be in the creation of your own business and deciding if this will replace your current job, or supplement your income on the side.

Some people decide to ‘test the waters’ by starting their business in their free time as a way of determining whether or not it can be profitable enough to pursue. Going this route won’t work in every situation and is very time consuming, but can be a great way to limit risk and also give entrepreneurs the option of trying multiple business ideas before landing on the one they want to pursue.

Service or products

By far, the easiest business model to start is a professional service because you can get started with little to almost no overhead. Providing professional services or becoming a consultant means you can literally start a business with only a laptop and an Internet connection. It also means you’ll be able to work anywhere and have no need for office space, so your start-up costs are extremely low.

If you decide to sell physical products, this can require more upfront capital and investment. However, there are ways to build this business model while still limiting your costs and initial risk.

Methods such as reselling or drop shipping are great ways to create businesses that sell physical products, while limiting your investment and not requiring you to carry significant amounts of inventory. Developing a drop shipping business also gives entrepreneurs the option of creating and scaling their own brand when they reach a level of sales that can justify customizing their drop shipping products with their own name or logo.

Barriers to entry

One of the most important things to understand before starting any business are the barriers to entry. This can include any number of factors from upfront costs, learning curve, and competitive landscape, to other unexpected barriers such as low margins or even supply chain issues.

Making a list of pros and cons before getting started may identify barriers that make the business idea unrealistic, or might require changing your priorities altogether.

Profitability vs. time

We all know that ‘time is money,’ and the amount of time you need to invest in your new business can have a direct affect on your profit. Getting any new business venture up and running can take an extraordinary amount of time, and if you’ve decided do you launch your business in your free time while still working your 9-to-5 job, time becomes an even more precious commodity.

The reality is not all business opportunities are worth the time you put into them, because your return on investment doesn’t make sense financially. What’s important is being able to recognize this challenge as early as possible to give you the flexibility to move on to another opportunity that offers greater profitability.

Growth opportunities

Finally, what is the long-term viability of your business idea and is this something you plan on sticking with for a long time? You’ll need to do some preliminary research about the growth potential of any business you consider starting. Research the overall market conditions and conduct a simple SWOT analysis to determine not just short-term but also long-term potential.

Don’t forget to also take into consideration your own personal motivations for becoming an entrepreneur, and whether or not you see yourself in this role long-term.

Priorities and interests can change over time, but if you’ve made a short list of ideas to consider, try focusing on the one you have the greatest passion for as it will likely become the business with the greatest chance of success.

There’s no right or wrong answer

Becoming an entrepreneur and launching your own business is something many people have been thinking about for years. For most, it’s not an easy decision and many people can become paralyzed by the amount of questions, research, preparation, or investment they believe is needed to even get started. However, starting a business is simply a process like any other effort and there are no right or wrong answers—and definitely no one-size-fits-all solutions.

If you’re considering starting your own business, check out my other post ‘What Entrepreneurs Do That Others Don’t,’ to learn if you have what it takes to succeed.