When you’ve decided to go into ownership, you need to know what type of business that you want to pursue. You should start by identifying the products and services that you intend to deliver. You can easily narrow down your choices by looking at the following factors:  

 

Researching Costs

Examine the costs of businesses in different industries and regions.  

 

Look into Imported Goods

Identify which goods and services that local companies and other organizations buy from outside your area.  

 

Look into the possibility of selling goods made by others.  

 

Check changes in legislation that might offer business opportunities that you could use to your advantage.  

 

 

Once you’ve determined the products and services that you want to sell, you want to investigate that market to determine if there is a demand. Find out what growth opportunities exist that can benefit the business.

 

Here are some simple yet important questions to ask:

• What are the product and/or service that you want to sell?
  
• Is the product or service unique or are there many like it?
  
• Who is going to buy your product and/or service?
  
• Why should someone buy your product and not someone else’s?
  
• How many people will buy your product and/or service?
  
• Is the market stable, growing or shrinking? How many competitors do you have?
  
• How price-sensitive is the product and/or service that you want to sell?  

 

Selecting the Right Type of Ownership  

 

There are a few avenues that you can take when deciding the type of ownership that you want. It all depends on if you want to be the one completely ruling the roost or have some help through a partnership or a network of associates. Perhaps you want to start a franchise? There are plenty of options for you to choose. It all comes down to which one will be the best fit for you.  

 

Sole Proprietorship

You may want to take on ownership alone and all the responsibility that goes with the business, including all taxes, debts and day-to-day running of the business.  

 

Partnership

This type combines the skills and experience of two or more people that can share the workload and manage operations with some flexibility. Just remember to use caution if you propose a partnership to your friends as that could open up a can of worms. Ask yourself if they would really make good business partners, do you respect their judgment and what they would bring to the table.  

 

This is an incredibly easy and popular way of creating your own business by investing in a new branch of an established company. You get considerable support from the company and enjoy the advantages of a proven product or service. However, the rewards are limited by the franchise agreement, and you are committing yourself to operating according to someone else’s policies and methods in exchange for less start-up risk. Remember to research thoroughly before committing yourself.  

 

Networking

This option is an informal agreement that you can make with business associates. You still retain control of the company, but you build relationships with others in the same kind of business to share some costs such as marketing and advertising.  

 

Keep in mind that this arrangement has no legal foundation unless you enter into specific contracts with associates, but that depends on the trust that you have with them. Networking can lead to a larger customer base and speed the growth of your business; however, you must be prepared to give as well as take.