In evaluating the options you identify, your goal is to choose a business that inherently has good potentials of success. While the ultimate performance will depend on how well you run your business, starting on a strong footing will be important. Give careful consideration to the nature of the product or service. The following factors are important:
Consumables are products that are consumed and replaced. They offer a better guarantee of sustained demand; durable products, on the other hand, will be demanded less frequently. On a low working capital, you probably will prefer a product that moves fast and consumables will be your best bet.
Essentials are basic requirements which individuals and households purchase all the time. Food items, toiletries, clothing, etc, fall into this category. A business rooted in these goods will, on balance, stand on a stronger demand base than one that deals on luxury items. For a small beginner, these items are a safer bet.
Seasonality refers to consumption cycle which peaks at certain periods but may be flat or depressed at others. Umbrellas sell well during the rains but may not be in much demand in the dry season. Unless bundled with other product lines, such goods can create a cash flow nightmare in the 'off' season. Consider a product that keeps you in business all year round.
Where To Look
To ensure you pick up information on developments that can point you to evolving or existing opportunities, you need to make a habit of combing these sources:
The media publications, that is print, electronic, etc. Catching the news headlines in newspapers, magazines, radio, TV, etc should be an abiding habit. The internet, which has become a huge library, is a rich source of information. Its currency, extensive coverage and extraordinary accessibility make it a choice source to use.
Government's policy documents, official statements, budgets, publications of the Central Bank, government agencies, business groups and researchers will keep you informed of important economic and public policy thrusts.
Opinions of experts, friends, family and public discussants can also direct attention to where things are happening.
In summary, starting a business is serious business and requires some serious work. Take some time to do some analysis based on the indicators outlined here. Chances are good that you will find an opportunity that suits you and forms a basis for your dream business
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