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As a small business, focus on a promising niche market and work hard to offer them products and services they need. If you do this well you'll become known as an expert in this area and you'll be able to generate new business from your reputation alone.
5. Be careful of "hot" industries that are already overcrowded. Although you have to be first person into a market, you have to be careful of markets that are already over crowded.
One of keys to success in business is differentiating yourself from your competitors. If your customers can't see value in doing business with you over someone else you'll never be able to attract business you need to succeed. If there are already so many businesses doing what you're considering that you can't figure out how to make yourself stand out then choose another business idea.
6. Think about what works online. There are some products and services that work well online, and others that don't. Consider following rules when choosing your business idea:
a. The product or service offered can’t be readily available offline – or there must be an advantage to ordering from you such as price, bundling with other products, etc.
b. It has to appeal to masses – Internet is a global medium. That said, there are local opportunities but you need to explore them carefully.
c. It must be easily shipped around world.
d. You can't charge for something if it's already available online for free.
Before you decide what business you'd like to start, be sure to research it carefully. Knowing upfront how big market is, who your competitors are and what your competitors are offering will help you avoid costly mistakes.
Jennifer Tripp is the creator of MySmallBizCoach, an affordable, personalized coaching service for small business owners. Learn how your business can benefit from becoming a member by requesting a consultation now http://www.mysmallbizcoach.com/consultation.htm