Looking for business ideas

[Monica]

I am looking for business which can have good returns on investment and can last for the next 15 years or so.
I used to be in IT industry but now I am venturing out in the business world.
I have looked at some franchisee options like subway, hair salons but need soem advise from experts here.

[Paul Elliott]

Some thoughts:

A. Are you interested in a bricks and mortar business as an owner-operator or an owner hiring a manager?



A relatively big investment
Hiring other people = more headaches
Inventory to buy, stock, and control
Anchored to the real estate for a several-year commitment
If your interests change or the market in your area, you are anchored to the business for several years.
Etc.


B. Are you sure you want a bricks and mortar business versus an online information or service business? Online equals:

Lower investment
Lower on-going expenses
Few personnel
Contract labor
Little or no inventory
No real estate requirement
Easy to change focus or direction if your interests or the market changes.
Etc.


My best in your quest!

Paul

[Fulcrum]

Paul makes some good points, but there are more questions that need to be addressed before you look at his.

1) What do you see yourself doing for 15+ years?
2) What is your skill set?
3) What is your financial capacity?
4) Do you want to buy a business or build one from scratch?

Your question has been asked many times here and not one of us can give you a definitive answer. The best we can do is help you to take stock of yourself and try to point you in the right direction.

[David Hunter]

I "like" Paul's post (what happened to those "like" buttons??!).

What are you interested in?

If it's the franchise route, look into UPS. I know a guy who has like 5 (and growing) of them in Texas and is doing very well.

[Paul Elliott]

I "like" Paul's post (what happened to those "like" buttons??!).

They are at the lower left-hand side of the post just below the heavy blue bar. (he said, completely self-servingly. :o)

[turboguy]

Some thoughts:

A. Are you interested in a bricks and mortar business as an owner-operator or an owner hiring a manager?

B. Are you sure you want a bricks and mortar business versus an online information or service business? Online equals:



That was a really nice and thought provoking post Paul. It would be interesting however to know what the real success rates are between the two types of business. Any start up business has a high chance of failure. I do think different kinds of businesses have a diverse failure rate. Restaurants are one of the highest yet you rarely see a McDonalds or a Subway fail. Contractors seem to have a low rate of failure unless they are into drugs which seems to happen a lot. I would hazard a guess that the failure rate for online information or service business is among the highest of any business. Then again that is a guess and I could be wrong. Most often the easier a business is to enter (capital requirements, etc, the more risk of failure. Information and online service businesses are the easiest to enter.

[Harold Mansfield]

Any start up business has a high chance of failure. I do think different kinds of businesses have a diverse failure rate.
EVERY start up has a high chance of failure.


Restaurants are one of the highest yet you rarely see a McDonalds or a Subway fail.
That's because they are franchises and all of the quality control, product line,innovation, branding, marketing, and advertising is done for you. All you need to do is follow instructions, keep the place clean, and have basic management skills.

When you run your own joint, you're in charge of all of that so it takes far more skills and education.


Contractors seem to have a low rate of failure unless they are into drugs which seems to happen a lot.
Making a lot of assumptions and probably injecting some personal stuff in there that isn't reflected with facts about failure rates of contractors.


I would hazard a guess that the failure rate for online information or service business is among the highest of any business. Then again that is a guess and I could be wrong. Most often the easier a business is to enter (capital requirements, etc, the more risk of failure. Information and online service businesses are the easiest to enter.

There may be more of them at the moment, but I don't think the failure rate is any higher than any other business. Or at least you haven't posted any facts or figures to back it up.

Business failure is usually the fault of the owner. No marketing skills, poorly researched ideas, under funded, poor accounting, overall not having clue what they're doing. Some businesses are doomed from inception because they are just bad ideas. Some businesses are silly ideas and they take off.

A lot of it has to do with the owner. Execution is everything. A good idea doesn't just take off just because it's a good idea. Someone has to make all the right moves and know how to run a successful operation, or at least know how to learn as they go and roll with the punches.

Many, many good ideas are in the graveyard because the execution ruined them.

[David Hunter]

They are at the lower left-hand side of the post just below the heavy blue bar. (he said, completely self-servingly. :o)

There they are!!! Ha, thanks!

[Paul Elliott]

That was a really nice and thought provoking post Paul. It would be interesting however to know what the real success rates are between the two types of business.

The comparative success or failure rate is largely due to personal factors of the owner/operator.


Any start up business has a high chance of failure. I do think different kinds of businesses have a diverse failure rate. Restaurants are one of the highest yet you rarely see a McDonalds or a Subway fail.

It is my understanding that a McDonalds franchise now costs more than a million dollars. The prospective owner has to spend 9 months at "Hamburger University" where EVERY aspect of running a store is covered including diagnosing and minor repairs of the Central HVAC, refrigerators, and friers. Then, McD chooses your location based on extensive demographics including auto traffic, the average speeds on the streets, the average age and income of the auto riders, etc., etc.

The owner is really paying that money primarily for the 6-foot manual sitting in the back office with sufficiently detailed instructions that a 16-year-old can run the store.

As Harold pointed out, ALL you have to do is follow the directions to be successful!


Contractors seem to have a low rate of failure unless they are into drugs which seems to happen a lot. I would hazard a guess that the failure rate for online information or service business is among the highest of any business.

The commitment of the owner/operator probably has much to do with the amount of investment. Small investment = small commitment; Large investment = large commitment.

With the right tools AND a commitment to learn, execute, AND persist, nearly nearly and reasonably conceived business will succeed.


Then again that is a guess and I could be wrong. Most often the easier a business is to enter (capital requirements, etc, the more risk of failure. Information and online service businesses are the easiest to enter.

Actually, the ease has little to do with it. (See above.) Has more to do with commitment. Information and online service businesses are very easy to enter and, if done properly, VERY lucrative! I can assure you of that.

Paul

[billbenson]

[QUOTE=Harold Mansfield;105898]EVERY start up has a high chance of failure.

I'm going to slightly disagree with you on this one Harold. For those of us that have been there and done that, we might need to go back to living near the poverty level again for a while, but I feel confident that I've done it and can do it again.

It's a different story though, for those that have never done it...

[CreditRepairGuy]

I agree with David, find something your interested in and see if it fits with a business model.
Also find something that is in demand now and won't be going away anytime soon.
I am an agent with a Financial Service company that offers credit restoration, ID protection, etc., their is a need
for this service and I feel good helping people.

Good luck & be sure to find your Need.

[Serge S Khakhulin]

I used to be in IT industry but now I am venturing out in the business world.
Monica, did you disapointed in IT-business? Why you do not want to create something in IT area?