Thursday, January 15, 2009

do you want to stick it out ?

There is no dearth of business ideas and it is just your zeal to make money yourself and you will be able to get and idea or a business model perfected to suit your needs and this is what business is all about.
That said time is money as an investment so make sure that you invest your time wisely and if you think you are not ready then go and find a regular job.

market potential

High entry barrier Corporation require large amount of funds most of the times and that high entry is because the technology or the costs. Even for acquiring the technology you may have to shell out huge amount of money. Most of the times in these kinds of business the companies in the whole industry may be only two or three and that will mean you will have very well entrenched competitors.

The upside that the market is huge and even if you make a small dent in the market you will be able to survive.
Update Mar 2010 - I read a few very good articles on business and economy here. A must read for getting good information on any topic.

Each of this of course has its won set of challenges and the main one is to acquire the funding. Low entry barrier business most of the times do not require much funds and hence you can easily get financing from people around you or banks. But for large barrier businesses you will have to have a sound business plan and a business team in place to approach big banks who may then be willing to lend to you.

Low entry barrier vs high entry barrier business

Of course venturing out into a an entirely new are is not unheard of but the fact is that new areas can ventured only if you know of a niche which is so specialized that it will take you ages for the competition to come out on tops on you.

This leads to the next big questions which is whether you want to enter low barrier business or a high barrier entry business. There are advantages and disadvantages of each kind of business and that can actually be the crux of what your business model will be like.

The business that you like can be low entry barrier business that means anybody can start that kind of a business and everyday new business will spring up and your unique selling proposition will help you survive in a tough market. This is in stark contrast to the high entry barrier business.

Types of business

There are several things that you need to consider before you start a particular business. The most important thing that you need to decide is for yourself and that means that you need to think as to how much money you will be able spend as well as how much effort you will be able to put into a particular Business.

Then the next question you want to think about is that the business has to be a home based business or rather a regular business which involves getting an office and also making sure that you have some office staff to make that office work.

Then next comes the issue of what kind of business model will you like to have. And in that you should find a business that interests you. as well as you have expertise and specialization.