"Do what you love."
It is a popular maxim. We are all encouraged to work in an area that we enjoy, doing work that is fulfilling and meaningful to us. That sentiment is no different for entrepreneurs.
How can you find business interests that match your passions and interests? When is it a good idea to turn those interests into a business?
It takes some clear self-reflection and candid assessment of your abilities to find the answers to those questions. As seen in the recent post, A 9-Step Guide: Quitting Your Job to Become an Entrepreneur, a clear-eyed look at your skills, finance, and interests are important before starting any small business.
Here is a look at how to match your interests to business opportunities.
Understand Your Passion
What do you love about your life? It helps to start by making an inventory of your interests, passions, and fulfilling activities. These passions may very well be a part of your work life. They may be something you pursue in your free time. It may involve a hobby, a family interest, or a former job. Knowing what these are is the right place to start.
Assess Your Abilities
Once you have determined your interests, you need to understand your abilities in that field. Are you an amateur woodworker whose creations draw raves from those who see them? Are you an avid baseball fan but cannot hit a fastball? Understanding your abilities within each of your interests can help to narrow the list of potential businesses.
Know the Business
How much do you know about the potential business venture? Just because your hobby is fun does not mean it will easily translate into a business opportunity. You will need to do some research to find out what the market, customer demand, challenges, and competition is for any would-be business.
Learn from Others
Many successful business leaders are happy to share what they have learned and what drives their interests. Reading about their paths to success and how they went about founding their companies can help frame your own thinking about your entrepreneurial dreams.
To be successful, your business will need to meet a need for a product or service that customers are seeking. You will need to ask whether your passions are “sellable” and in demand. Passion alone will not make up for a lack of a market for what you are thinking about offering.
Differentiate Your Business
If you have determined the right area to pursue and are willing to make a leap, you need to ask yourself how your business will differentiate itself from the competition. Will your product be made differently or offered at a more competitive price point? Can you offer better service or a stronger community impact? Knowing how you will stand out can help make your business venture a success.
At Benetrends, we help businesses with the small business funding they need to launch or grow. Our unique financial model uses existing 401(k) or IRA funds to fuel businesses without the hassles or lag time of traditional financing. To learn how Benetrends can help your business, download The Definitive Guide To 401(k)/ROBS Business Funding.