Before I became a freelance writer, I struggled to decide what type of business to start. I couldn’t figure out if I should resell used clothes online, become a freelance editor, or start a content writing business.
I delayed launching a business for a few months because I couldn’t figure out which idea was the best. I didn’t want to invest my time into something just for it to fail.
Now I look back and think about the revenue I lost because I was indecisive. If you’re going through something similar, here are some tips to help you figure out what business to start so you can take action.
What Are You Good At?
If you want to start making money right away, it’s a good idea to base your business on a skill that you already have.
Although I thought about becoming a graphic designer, it would’ve taken me months to learn how to design great logos. I wanted to launch my business as soon as possible, so I chose writing, something I was already good at.
Think about your skills and hobbies. Can you turn any of those into a business?
If you’ve always been told you’re a great cook or an amazing singer, you may be able to leverage those talents and use them to make money.
If you get stuck on this step, ask your friends and family what your biggest strengths are to get some potential business ideas.
What Do You Like to Do?
If you’re good at taking photos but you hate doing it, you probably shouldn’t become a freelance photographer.
You’re going to be working on your business all the time. So ideally, you should center your company around a product or service you feel passionate about.
You should also consider what kind of lifestyle you want. If you think you’d be happiest working from home, you may not want to start a landscaping company unless you can outsource the labor.
How Much Startup Capital Do You Have?
I started my business when I was 20 years old and broke, so I didn’t have a lot of startup capital. That’s one of the reasons I chose freelance writing—I didn’t need to invest in any equipment to launch my business.
If you don’t have spare cash on hand, it may be better to pick something without high startup costs like freelancing or dropshipping.
But if you can invest some money into your venture or get a bank loan, that opens up more options. Since you can invest in supplies and inventory, it will be easier to start a product-based business.
Depending on your budget, you may be able to start a service-oriented business that requires special equipment like tree removal or landscaping.
Figure out how much money you can afford to invest and do some research to find business ideas that align with your budget.
My last and most important tip is to take action.
It’s important to remember that there is no perfect business idea.
Spending months deciding what business to start won’t prevent you from failing. Every business has risks, so there’s always a chance that the idea you choose won’t work out.
But you won’t know until you try.
So if you’ve been mulling over starting a company for months, do it. If things don’t go the way you planned, you can always pick another idea and try again.
Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.