It's time to take a step back. Maybe you don't have the business plan worked out yet. Maybe you just have the desire to start your own business. And maybe that's possible–if you choose the right industry.
C H O O S I N G A N I N D U S T R Y F O R Y O U R
By Noble Newman
Picking the Right Industry is Imperative
When you create a startup, it’s important to choose the
best industry for your idea, and also make sure you
have a feasible plan for your startup. Creating a
successful startup is difficult; a new business is a lot of
hard work and long hours. Choosing the correct
industry is vital because if you aren’t happy in the field
you’re trying to build your business in, it’ll be twice as
hard to craft a successful company.
F I V E T H I N G S T O C O N S I D E R
1. 2. 3.
You need to identify an industry that you feel passionate
about, because if you don’t really care about it, it’s unlikely
your business will be very successful. Just because an
industry has great growth opportunities and companies
are successful in it, doesn’t mean you should pursue that
industry if you aren’t passionate about it. Starting a
company requires huge commitments of time and money,
so if you aren’t working on something you love and that
brings you happiness, you’ll feel hopeless when you try to
overcome the rough patches in starting a business.
Don't enter an industry just because it's
novel, enter it because you love it.
Learn what you’re best at in regards to business. If you’re
really great at fundraising or organizing a team, focus
your efforts on those areas and become even better doing
them. Your specific skillset will be what pushes the
business along, so it’s important you know your strengths,
and also your weaknesses! Find employees or partners
who have talents in the areas you lack, so you can create a
Identify your strengths and play into
When picking what industry to go into, research trends in
the various industries. While you should definitely not
pick an industry based solely on whether or not it’s
growing, choose a few that you would like to work in and
are interesting and then see what the environment is like
in each of those. If one has substantially more growth than
another, go with that industry.
An industry trending downwards is an
industry you'll want to avoid.
When you first start out, don’t try to do something
completely innovative. It’s fine to work off of tried and
true methods that have been shown to make things run
smoothly and easily, instead of trying to reinvent the
wheel. Once you’ve established the company, you can try
to experiment with new ideas and ways of running the
business, but make sure you’re on a solid footing first, so
you aren’t putting your business at unnecessary risk.
If it's not broken, don't fix it.
Once you think you have an industry in mind, scope out
your competition. Look what other companies you’d have
to compete with and how large they are. If only one or two
businesses have a monopoly in the industry you’re
considering going into, maybe you should reconsider,
because it’ll be especially difficult to get a leg up when
you’re competing with huge companies that are
entrenched as the top names in the industry. Also pay
attention to how other businesses are run and what
concepts are used and then evaluate whether or not those
methods are successful.
Competition is good for the consumer,
but monopolies make business difficult.
W A N T T O R E A D M O R E ?
N O B L E N E W M A N