Experience and Skill

Start a business doing what you know how to do well. If you are a great cook, start a food service business, and if you are organized and good at math, start an accounting business. Basing your business on your skills and experience puts your new company in an advantageous position because it enables you to provide quality products and services, which will please customers and incline them to come back for more. It also saves you the stress and hassle of making expensive mistakes.

Budget

Ideas for starting a new small business should be scaled toward the financial resources you have available. If you have no money and poor credit, start a company that costs very little, such as a house-cleaning business or a home-based bookkeeping service. If you have access to plenty of money and you have the skills and experience to succeed, it makes sense to start a business that costs more to launch, such as a retail store with inventory or a restaurant.

Passion

Starting a business can be a profoundly creative act, and many successful small companies are based on the passions of their founders. If you love working with children, you might start a daycare, and if you love music, you might start a music store or recording company. If you start a business based on a personal passion, keep in mind that your business is not just a creative outlet but also a vehicle for earning a living. Strike a balance between doing what you love and creating a cost-effective company.

Resources

When reviewing ideas for starting your own small business, look at the resources that you have available. If your company owns land, consider starting a farm, and if you inherited a valuable collection of sports cards, you could start a business buying and selling sports paraphernalia. Personal and family resources should not limit your choices about the type of business you start, but if your proclivities coincide with your resources, your company will have a head start that could save you time and money.