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  • Assessing Your Skills to Find the Right Business Type

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    August 15, 2022

    Becoming an entrepreneur isn’t an easy path, but if you feel driven to start a business, it can be incredibly rewarding. In addition to the autonomy and freedom you’ll enjoy, you can look forward to the reward of seeing your vision materialize. Perhaps all of this sounds appealing, but there’s one problem — you don’t know what kind of business you want to start. If this describes you, there are a few strategies you can use to find your direction, but your best bet is to simply look inward. Find out how your skills can help you choose the right kind of business in this article.

    Different Kinds of Businesses to Consider

    When you’re trying to decide what kind of business to start, you must first familiarize yourself with the options. One of the most common is the eCommerce business. This kind of company is like a retail store, but instead of a brick-and-mortar location, you conduct all of your sales online. This is a great option because it’s flexible and allows you to work from home.

    If you feel that a physical location would be beneficial or even necessary, you could also start an in-person retail establishment. What you sell may depend on your target demographic, location, and skill set. A physical location allows you to interact with prospective customers in real time, which is an asset if you’re banking on your sales skills.

    You may also consider starting a business-to-business — or B2B — company. According to research, 55% of B2B customers search for product information on social media. As the name suggests, this kind of structure is tailored to companies that primarily serve other businesses, such as an electrical supply company that sells exclusively to electricians.

    How Your Skills Can Reveal the Right Path

    Assessing your skills will help you see what kind of business structure is best suited to your unique abilities and experience. If you pour all of your resources and energy into an endeavor that’s simply not suited to you, it will likely be unsuccessful, no matter how much effort you put into it. Conversely, if you choose a business type that aligns with your skills, you’ll be set up for success.

    To assess your skills, you should think about the jobs you’ve had in the past and consider the time and resources you’ll be able to devote to your new business based on those experiences. These factors will help you decide what the most realistic option is and what kind of business is the most likely to succeed.

    With this information, you can then invest in market research to see how viable your idea is. If it’s sustainable, you should draft a business plan that includes your new company’s financial projections, finding sources, internal structure, plans for marketing, and the business structure you’ll use. There are many business entities to choose from, but one worth noting is an S corp in NJ, which offers you the ability to claim deductions on business losses as well as self-employment tax savings. Outlining each of these elements when you’re ready to start a new company will help you further identify how to apply your skills and utilize them in your new venture.

    A Skills-Based Approach to Entrepreneurship

    Your skills are your most valuable asset, but too many entrepreneurs set theirs aside when they’re starting a new business. You can avoid making this mistake by leaning into your unique abilities and leveraging them for success. Your past experience has brought you where you are, and you should continue to apply what you’ve learned as you start a new business. You can do so by creating a business plan and choosing a business type that’s suited to your skills.

    Help your business soar in our community by joining the Hudson County Chamber of Commerce.

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