What industry should you start a business in?

Starting up your own business may have crossed your mind, as it has with 64% of the UK's workforce. However, many prospective business owners' vision is blurred, and without a clear view of what type of business to open, many business plans end up failing or not even starting up at all.

This article will cover the factors you should consider when deciding the type of sector you would like to enter(or continue to work in) and help narrow your search down to a specific or a few confident choices.

Firstly, and most obviously, we have experience. Whether you are working in a field you have always dreamed of or a sector you never thought you'd enter, the knowledge and experience you have picked up will significantly impact your choice of industries. So consider the skills you have picked up. How can they help you become a front-runner in your chosen industry?

Some career paths are more flexible and equip you with greater business skills. For instance, an accountant will better understand the financial element of buying a business than a recruiting expert, who will have an advantage when hiring suitable employees.

Before buying a business, your career path may have taken you on an unforeseeable journey, showing you a fascinating insight into things you are good at. In this case, you are often rewarded with a promotion, as your superiors are confident you will thrive in that position. Being good at what you do is vital in being successful as an employer, so make sure you can perform in the market you choose.

With over 5.5 million small businesses in the UK, many markets become saturated, leading to more competition. Competition makes it difficult to gain any market share, especially when other companies sell the same product/ service as you. So you need to find your Unique Selling Point(USP)- a niche product/ service you offer, setting yourself apart from the competition.

Research

No two industries are the same. Regardless of your experience and understanding, any industry you enter will require you to partake in some form of research. Sufficient research can differentiate between entering a business prepared and taking off and being blind and failing. 

Enjoyment

For your business to grow, you must have passion. You must choose an industry that you are familiar with and care about. The key is to contribute heavily to the business's growth and provide a genuine service that customers would enjoy. Remember, this is a project you will spend most of your time working on, so it has to make you happy.

Impact of the business on customers

For many, the focus isn't money or profit. Sometimes it's about building customer relationships and providing a befitting service. For others, the goal of business may be to carry out charitable deeds; don't forget, charities are businesses at the end of the day and need to survive to perform well.

So if your business's impact on the people around you motivates you, think about the industries you can operate in to spread this positive impact.

Summary

In conclusion, we can deduce there are a handful of things to consider when choosing the business market you would like to enter. Start by asking yourself a few simple questions:

• What do you enjoy doing?
• What are you good at doing?
• What impact will your work have?
• What competition may you face?

Use these baseline questions to start with a successful business idea plan!