The first step to entrepreneurship is finding the right business idea. The popular advice is to do what you love, but for many successful entrepreneurs it is far more important to do something that sells. Do you really think that the guy who manufactured and sold the first rubber bands had some bizarre affinity for that particular binding implement? Doubtful. The best business for you depends on your reasons for going on your own, your skills and experience, and a handful of other factors. That said, there are certain startups that everyone should avoid, especially if you are looking for your first entrepreneurial opportunity.
Don't Do What You Hate
On the flip side of the standard "do what you love" advice is do not do what you hate, no matter how good you are at it. If you have put twenty years into an industry and have had enough, don't launch your own business doing the same thing just because it is what you know. If it is simply the day-to-day tasks of your particular position that you don't enjoy, consider other ways to use your knowledge of the industry in a business that you would find more interesting. Or, go ahead and learn something altogether new. But continuing in a line of work you despise just because you already know the operations is a bad idea. You will be bored, unmotivated, and disillusioned very quickly...a situation that virtually guarantees failure.
Avoid Competing With a Current Employer
Also avoid business ideas that are in direct competition with your current employer. If you are under an employment contract (even an official employee manual), there is a good chance you agreed to a non-compete clause, whether you realize it or not. Part-time or moonlighting businesses are especially relevant here -- it is a bad idea to start any business that even might have a distant conflict of interest with your current employer. They will fire you, then sue you. Just don't do it.
Don't Rush Into a Business
Many would-be entrepreneurs are so eager to launch their own business that they make really horrible, knee-jerk decisions about which business to pursue. Don't rush into anything. Take the time to thoroughly research your idea. If it turns out to be viable, then you have a huge jumpstart for launch. If it turns out to be too high of a risk or unlikely to succeed, you are only out the time you spent researching. Any tools you purchased to help you through the planning can be used again to help you plan the next idea, so no waste there.
Avoid Commodity Businesses
Avoid commodity based businesses, where the lowest price captures the sales. Startups don't have the volume purchasing power to compete with the established corporations, and you will end up with an inventory full of loss leaders...and no profitability. Instead, consider ideas in which personal attention, innovation, or other factors drive your target market's selection. Service ventures are good, and the more specialized, the better. Niche businesses make it easier to identify and reach your target market, and focusing on a single marketing message can save you both time and money in the early stages of your first startup.
If it Sounds Too Good to be True, It Is
Don't fall for the get-rich-quick scams. If it sounds too good to be true, it is. Anything that claims you can make a lot of cash by doing nothing, learning nothing, and spending nothing (except their scam fees) is nonsense. Somewhere, your logic is telling you its balderdash...listen to that inner voice and save your money for the startup resources you really need. MLMs of all types (including the scams and product-based outfits like Amway and Avon) have over a 99% failure rate. That is, more than 99% of people who buy in to become rich from the lower levels never even earn back their investment. Don't try to jump aboard someone else's idea. If you want to be truly successful in business, find your own business idea and do the work to build your entrepreneurial skills.
Don't Exceed Your Risk Tolerance
Be careful of any idea that requires a huge upfront investment. Unless you have an extremely good reason, avoid risking everything you have on your startup. If your business idea involves more money than you can reasonably accumulate, look for ways to modify it down to a reasonable scope. You can always grow and expand to meet the bigger idea over time. Also avoid significantly high-risk ventures your first time around. Entrepreneurship is difficult enough in low-risk ventures, and uncertain startups add an entirely new, thick layer of stress to everything you do. Look for the lower hurdles and the obvious ideas. Once you work out the kinks in how to run a successful startup, you can move on to the higher risk/higher reward ventures.
Choosing the right business idea is critical. While you need to be happy with what you are doing to stay on track, it is not true that you have to do what you love. Instead, keep the "what to avoid" in mind and take a look around you. Often, the best ideas are the most obvious.
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