What if your current job is not providing you the income level that you need to retire on? There are many ways to increase your income, such as, getting a different job or getting multiple jobs. However, the most lucrative option is often to start your own business.
The purpose of this article is not necessarily to encourage you to start a business or even to tell you how to start a business. The purpose is simply to make you aware that most individuals with great personal wealth are all entrepreneurs. So, starting a business could be the missing link between you and great personal wealth.
If you take a look at the world’s richest people as ranked by Forbes, you will see that most of them are entrepreneurs.
Type of Business to Start
The easiest business to start is the one in which you are already in. In other words, if you are a janitor, start a janitorial service; if you are an accountant, start your own practice; If you are a software designer start a software design company. You get the idea.
The main types of businesses can be categorized into three main categories: Services, Products, or Retail.
Services: These businesses tend to be easier to start because they usually do not require as much money to start. Examples of service businesses include the following: house cleaning, window washing, garbage removal, paper shredding, delivery service, consulting, etc. There are millions of service businesses, and they can potentially be very profitable. There are plenty of millionaire plumbers and janitors. They simply started a business and now have hundreds of plumbers or janitors working for them.
Products: In a product business, your company tends to revolve around a new product or invention. If you invented a better stapler, or a different kind of hat, or a way to dispose of nuclear waste; then your business revolves around the product. Most likely, you will need a patent to protect yourself from others stealing the idea.
This is probably the most difficult type of way to start a business; because not only will you need to invent something; but you will also have to develop it, produce it, market it … all before you make any money.
Retail: I call the final category of businesses “retail”. This simply means that you are selling products (that you did not invent) to someone else; typically the general public. Wal-mart, Saks Fifth Avenue, and the local thrift store all fit into this category. Many people try to open restaurants, which is fine; however, you should know that a restaurant has a VERY low success rate. The costs are high, and it is very difficult to project how many customers you will get.
Other businesses in this category include: eBay type businesses, vending machines, wholesalers, distributors, and many others.
If you are looking for ideas of different types of businesses to start; or more advice on starting a business, see the resources below.