Some Colorado residents think that, short of winning the lottery, starting and operating a business is the best route to the good life. For many people in today’s changing economy, a business in which one is personally invested is an ideal way to make a living. Some experts on startups, however, recommend that anyone interested in business formation think long and hard about their business ideas first before committing time and money.
Although a business based on the hottest current trend may appeal to the entrepreneurial spirit, chances are that if the field is likely to grow and be lucrative, investors with a lot more experience and a lot more capital will be entering the market, putting smaller entrepreneurs in jeopardy. Many business consultants instead recommend forming a business that addresses a niche and has good demographics.
Consider gluten-free products. The 2013 market for these foods was $10.5 billion, and it could be more than $15 billion by 2016. The industry is now attracting big competitors with lots of experience in the food industry.
Instead of an end product, a single ingredient used in end products manufactured by other companies might be a better approach. Penford Corp. in Centennial, for example, manufactures tapioca that others used in their gluten-free products.
Or consider Cisse Trading — located in another state. One of its missions is to give people information they need about food, particularly those who have food allergies.
Like every successful entrepreneur, a would-be business owner should be mindful of the types of business practices and services that can get clients ordering more product or service and recommending it to others.
Entrepreneurship should also thoroughly consider legal matters concerning the business such as employment agreements, business organization and transactions. Doing so can protect the business from litigation that could jeopardize revenue and reputation.
Source: Aurora Sentinel, “Need A Small Business Idea? Don’t Pick What’s Hot,” Joyce M. Rosenberg, May 14, 2014