If you know you want to be in business for yourself but don’t know where to start, Forbes contributor Melissa Houston identifies five types of business that are expected to be in demand in 2025. The list includes healthcare for seniors, products and services that promote sustainability, artificial intelligence (AI) consulting, digital marketing agencies, and products and services for pets. One thing all five have in common is their potential to generate profits quickly and consistently.
Once you’ve decided on the type of business you’d like to start, you’re ready to begin your research. The SBA offers an omnibus Business Guide that covers planning, launching, managing and growing a business. The guide includes links to SBA funding programs, federal contracting, the SBA Learning Platform for finding training and skills development programs, and a directory of local services for new businesses that you can search by ZIP code.
The Department of Veterans Affairs has created a Veteran Entrepreneur Portal to promote the use of small and disadvantaged businesses. The portal features video tips for starting a business, potential sources for funding and federal contracting opportunities available to veterans.
You don’t have to begin your journey with an official business plan in hand, but you’ll likely need a formal document describing your business at some point, especially if you plan to apply for a business loan or want to attract investors.
Start by finding out more about the businesses you’ll be competing with than they know about themselves. The first thing you want to study is how they manage to turn a profit: Do they get a break on their overheads or other operating expenses somewhere down the line? How much business does their advertising and other marketing investments pull in? Where are their customers coming from, and what’s the best way for you to reach these people?
This way, you can spot the things they’re doing that work and the areas where you can outdo them. Think about the ways your product or service tops theirs, and the best ways to capitalize on your advantages. Take plenty of time to cogitate on the specifics of your business, who you’ll need to hire, upfront costs and all required permits, licenses and certifications.
Tips for Conducting Marketing Research
Arguably the most effective way to start your pre-launch research is by talking to someone with experience in your chosen field and knowledge of your vicinity (for local businesses). The Small Business Administration (SBA) recommends studying six aspects of your market:
- What’s the level of demand for your product or service now and in the future?
- Who constitutes the market for your business? Devise profiles of your target customers and determine what will attract them to your product or service.
- What is the state of the economy in your target market? This will impact both demand and your marketing approach.
- Where are your customers located, and how will they reach your business? This includes e-businesses and the online component of brick-and-mortar operations that need a digital marketing strategy.
- What’s the level of market saturation for your business, and what similar options are available to your target customers?
- How much will people be willing to pay for your product or service, and will your business be able to realize a profit at this price point?
Select an Ownership Structure
After completing the first phase of your ongoing market research, you’re ready to decide on a business structure. The most common types are sole proprietorship, general partnership, limited liability company (LLC), limited liability partnership (LLP), C-corporation and S-corporation:
- Sole proprietorships are the simplest and least expensive, requiring no formal filing, but they make the owner liable for the business’s debts and other liabilities.
- General partnerships allow two or more people to share profits, losses and liabilities for the operation, with each partner responsible for filing their own taxes on the revenue they receive from the business. They typically involve a formal partnership agreement.
- LLCs must be registered with the state in which the business operates. They protect owners from some of the company’s debts and other liabilities. LLC annual filing requirements are less onerous than those for corporations.
- LLPs are often chosen by professional groups, such as lawyers, accountants and doctors, which want to reduce their personal liability without going through the process of incorporating.
- C-corporations, or C-corps, have a board of directors and sell shares of the business to investors. They are taxed separately, unlike sole proprietorships, partnerships and LLCs. C-corps may be subject to double taxation because both the business and its owners are taxed when profits are distributed.
- S-corporations, or S-corps, are similar to C-corps in having to register with the state, choose a board of directors and sell shares of the business. However, they can pass revenues directly to owners to avoid double taxation.
Write a Business Plan
Once you’ve determined what your business will sell and have devised a strategy for reaching your potential customers, it’s time to create your organization’s road map for success: your business plan. The plan’s three purposes are to describe the focus of the business, explain how it will be funded and designate who you’ll hire to manage and operate the entity.
The SBA provides three free business plan templates: two that take a traditional approach, and one that uses a “lean startup format.”
- The traditional business plan format starts with an executive summary and company description, followed by a market analysis, an outline of your organization and management structure, details of the products and services you’ll offer and how they will be sold and marketed. It may also include funding requirements if you’ll be seeking outside sources for financial support, as well as financial projections.
- The lean startup business plan is best suited to owners who want to start quickly, have relatively simple needs and intend to alter their operations and marketing efforts as the company grows. The plan covers key partnerships with suppliers, manufacturers, subcontractors and other entities, as well as the activities that will give the business an edge over the competition. It also describes important assets, such as key executives and staff members, intellectual property and sources of capital.
Get an Early Start on Marketing
Your marketing efforts begin well before your first day of operation. In addition to creating your website, you have to optimize it for search engines so that it appears in search results when people enter keywords and phrases related to your products. You’ll also want to add your business to online directories and establish a presence on social media.