When starting a new business it is very important to know and consider the best category or niche for your business. It is wise to choose a business niche that can scale, that is not seasonal and allows you have time for more businesses. There are different types of businesses one can do and their category varies, but there are some businesses you can do that the amount of money you can make is only limited by your resources and not by the fact that the business cannot be expanded.
Table of Contents
Lists of Types of business categories (Both scalable and non-scalable business niches)
- Clothing and accessories
- Fashion design
- Food retail
- Computers and accessories
- Sales of magazines
- Catering services
- grocery store
- Sales of Building materials
- Art/ craft
- Interior decor
- Graphic design
- Printing press
- Books sales
- Real estate agent
- Vehicles sales
- Chair and table rentals
- Supermarket sales
- Furniture sales
When you consider the above business niche, you will find out that the amount of money that can be earned from some can increase as the population increases, this means the demand increases as the population increases but others cannot be increase even when you decide to increase the amount production. Take for instance, the rental services business, when you increase the chairs or cars or whatever you intend to rent out, it will not influence the amount of product the customer may decide to rent at any given point in time; comparing this with Agriculture, when you produce crops, people would have to eat and the more the population, the more you need to produce more to meet the growing demand. More of this below.
Factors that influence the best type of Business to start
There are three important factors that can assist you or serve as a guide for you to know the best category of business to start.
A scalable business is a business that can be expanded or the production can be increased with associated increase in revenue. This means that when the company decides to increase revenue, they can easily increase production or expand to more areas.The only thing that may limit its expansion is lack of resources. This type of business has the ability of increasing your income in a bountiful way, for instance, if you are into agricultural production, let say you produce food for a large population, you will have a high chance of expanding your production to any level because, each and every day the population of people increases as a result of new birth. For this reason, if you were producing crops like maize, you will need to increase the field in other to plant more maize for the next demand and the limitation may be the resource ( money or Land) and not the demand, hence if the land is increased, more maize can be cultivated for the growing population.
Another business that has no limit is health, for instance, production or sales of medical equipment which is in high demand by developing countries; people get sick every day and they take drug every day, this means as the drugs are produced, more are needed on a daily basis. In fact, drugs for diseases such as HIV/AIDS and Hepatitis C virus infection are in high demand that they do not meet the need of those who need it, in this instance, the company can increase the production and hence they can earn more. These are examples of scalable businesses and are the best to start with because it will save your time and resources. Imagine investing your time and resources for many years only to find out you have reach the maximum revenue your business can generate and your income is only dependent by choice of your customers and not by the amount of production or resources you have. In addition, fashion business is always in vogue, though you think of how competitive it is, but each day of our existence people buy cloth, and so many people would love to change their wardrobes for personal reasons. Lastly transportation business is another scalable business, since people travel every day by flight, land, and ship for different purposes, hence, if you are going into such kind of business as transportation, You can increase the number of cars in your company if for instance you started with one or two, you can increase more in order to earn more.
When choosing a business, you have to consider the seasonality of the business, your business category should not be that which is limited by season or time, it should be something you can do all year round. If for instance you want to venture into agriculture, first thing you should do is to consider constructing an irrigational dam that will help in watering the crops such that you wont have to stop your production during dry season. This will help you to produce food throughout the year since food is always in great demand during all seasons. Your category of business should not be something that is affected by season; take for instance, mango and strawberries are mostly cultivated only during rainy season, they are not really sustainable and they bring just little income in return. Another example of business that is affected by season is selling of ice block (pure water or sachet water), people take a lot of chilled water during hot season, but once the rain starts to fall their taste for chilled water is no more, and majority dont even buy water anymore during the wet season because they can make use of water. Invest your energy and resources in what is not affected by season.
Flexibility in time
Your business shouldnt take the whole of your life. You need to choose a business that can be managed by another person after you have got the business successful, especially when you are not around, it shouldnt be a business that needs just only you and no one else to support or assist when you become ill or away in town. Flexibility in business enables you to engage on other things; you can employ someone else to run the business while you play the supervisory role from time to time. Go into business that brings passive income, it continues to grow even without your presence.
For instance if you are an Uber driver and you fall sick, it means then that during this period of your illness you will not be earning money, since there is no one to play your role, hence, such business will have to wait until youve recovered from the illness. Your category of business should be your major concern, it should be something that brings in money (passive income) even when you are not presently there. You should go for a business that others can be trained on how you want your business to be managed and also teach them to be committed to that business so that when you are not around, the business can still grow.
You should take note that some business need you to commit your time before it becomes successful that you can bring in more people or employ staff.
Therefore, before you start any business, consider these three factors that can help you maximize your resources and time. It will be frustrating to start a business for years and reach a point where your income cannot be increased no matter what you do, such a business may not last long.
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Dr. Brown is the founder of Jotscroll, he is a Medical Doctor, Entrepreneur, and author. Dr. Razi Brown holds a medical degree from the University of San Diego. He has invested in many startups and is currently working on his fifth book to be published in the upcoming year.