How to Figure out Which Business to Go into Today

It seems like everyone on the planet wants to start their own business and become an eccentric billionaire.  It almost seems trendy. #Entrepreneurship and #Hustle dominate your Instagram feed, but there’s more too it than that.  Just like anything in life, starting a business is often easier said than done.

I sat down with Daniel DiPiazza, entrepreneur and author of the new book, Rich20Something: Ditch Your Average Job, Start an Epic Business and Score The Life You Want, to talk lifestyle, careers and business. He gave me a simple framework for getting started quickly with a new business idea, even if you’re completely new to the game.

Taking Your First Steps

To get your business idea started, you have to identify your skill.

“When it comes to starting a business, I always recommend people start with a skill-based side business. It’s the quickest way to get going with almost no overhead, and everybody has something that they’re good at,” says DiPiazza. “The most important thing to realize is that you don’t need to be a world-class expert in order to find a skill or a business idea that somebody is willing to pay you for.”

According to Daniel, there are three areas to look when trying to identify a money-making skill:

• Things you’ve done for work in the past—For instance, DiPiazza used to work for Kaplan Test Prep, so his first business was an SAT/ACT consulting firm.

Skills or hobbies that you already have—Are you bilingual? Are you a kitchen whiz? Can you build an app? These are monetizable skills!

• Problems people are constantly asking you to solve—Aare you the friend that always gets called for advice in a certain area of expertise? Maybe there’s the kernel of an idea there.

Once you choose which idea you’d like to run with, it’s time to make sure your idea can actually be a profitable business.

For this part of the process, DiPiazza recommends you use what he has dubbed, “Three Question Validation,” to make sure your idea is fail-proof before you ever begin. If you can answer yes to these three questions, your idea has promise!

Here’s how it works:

Question #1: “Is There Competition?”

Contrary to popular belief, DiPiazza quips, you want your market to have a little bit of competition. Why? Because the pioneers return with arrows in their backs! Those who are first to market often have to spend a great deal of time testing what works, figuring out who their customers are and what sells.

If you come behind them, you can learn from their mistakes and beat them at their own game.

Question #2: “Is My Competition Making Money?”

Sometimes the market is crowded, but businesses are fighting over scraps. You want to make sure that there’s enough to go around. It’s time for you to do some research to see how your competitors run their businesses.

Take a look at Yelp! Reviews or other forums. Google them for recent news articles. Give them a call or even stop into their store if your competition is local. Start getting a feel for how much business they are getting, whether customers are happy and what the market size is like.

Are they busy with lots of request and orders, or are things a bit slow?

Daniel jokes, “If you can see that your competitors are occupied taking care of their customers, and their customers seem to be pretty happy, this is another good sign! You want a market that’s happy to pay. Because soon, they’ll be paying you!”

Now it’s time to step it up a notch.

Question #3: “How Can I Do It Differently or Better?”

This is where you really get to shine.

Now it’s clear that there is a market and a need for your product or service. It’s time to think about how you can be different or better than your competition. This will catch the eye of potential clients and create a contrast between your business and others in your field.

DiPiazza says there are several ways to make your business stand out.

“Standing out is a big sticking point for most people, so I’m constantly talking about this on my blog, Yes, of course you can compete on price. But that’s a war of attrition. Everybody does that, and it hurts the entire market. Why not switch it up?

You can have better variety, better customer service, a better guarantee, or simply better craftsmanship. Most of the time, it’s just about meeting the customer’s needs more completely. If you’re a personal trainer, rather than having your client come to you, you could go to them and train them at their house. Boom, now you have a unique angle.”

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