Choose the Right Industry for Your Employment and First Business

WRITING IN PROGRESS. DON'T READ NOW

Choosing the right industry plays the most dominant external factor in your success as first time entrepreneur. External factor is mostly out of your control. Internal factor is something that is within your reasonable control.

I had seen several smart and diligent people, but they are not successful financially because the market size of their industry is too small or their market is too Commoditized. 

Commoditized refer to an industry with too many small players competing on prices only. Almost no value added can be done in this industry. 

There are five criteria of the right industry. Two of the criteria must be met and you should work hard to find the other three criteria, but not waiting to start until you found one.

1. Not capital intensive
Capital is the first challenge of many new entrepreneurs. You will not be able to open a capital intensive company as your first own company, such as new bank, factory, plantation, airlines, etc.

You need to find an industry which allow you to start with small capital today and slowly add more capital in the future along the growth period.

2. Profit oriented
It is very clear business exist to generate profit immediately within first year of operation. Certain industries take too long to generate profit or hardly able to earn profit despite how long their company operate, revenue and growth i.e. technology startup.

Many startups fail because they are not able to sustain their operation. They rely too much financing from investors. They will cease to operate when there are no new investor willing to invest in their startup.

You need to use the profit to sustain the operation, grow your business, fund for your living cost and make investment. 

Here is the link of all industries:

Three other criteria of the the right industry:

1. Growing
When you are building a structure, you do not want to rebuild it every time you complete the structure. For illustration, let’s say you are building a small tent. You find location of the tent, open the box, take out the tent, install the frames, put on the tent, put on the base inside a tent, place a mantras inside the tent and then eventually done. The next day, you do the same thing all over again. This is an extreme example for easier understanding only.

If your build a business like a tent, how is it possible to grow the business?
Company with low customer retention rate always has this problem.

2. High retention rate
- Build your own brand.
- Subscription service: SAAS,
-



2. Delegate-able


3. Disruptive


Apply for jobs and see which industry you are landed. If the industry

First Business
1. Own 100% of it or at least be a major shareholder of the company.
You want the company to last longer and able to inherit it to your children.

Comments

  1. The Local Guys ServicesMarch 31, 2022 at 3:59 PM

    Thanks for your post. It's very helpful post for us. You can also visit how to turn my business into a franchise for more Victor Steel related information. I would like to thanks for sharing this article here.

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