The first thing you have to do, in determining whether or not a business is worth considering, as a means of creating wealth is investigate the existing market for the type of business you have in mind.
Essentially, this means doing market research.
Before doing anything at all, you have an idea that you develop.
As a very simplistic example the process usually goes something like this: I like making jam.
I wonder if I could sell it, everybody who tries it says it is good enough to sell.
I think I will take some down to the local stalls and see if I can sell some.
Now, before you do go and set up a stall to sell at the local mall, you need to go to where you intend to sell and see for yourself whether or not other products or services are out there that are already servicing the needs of the people.
There is no point in just going down and setting up shop without determining if the shop next door to you is running 'make jam at home classes' for free.
Now this may seem simplistic but it illustrates the principle perfectly.
Your market research will define for you whether or not your idea of going into, or purchasing an existing, business is viable or not.
Without this information the task of surviving in the business world is likened to shooting in the dark.
You need to know, roughly, who your likely target customers will be, what they are currently buying, and where you would likely find them.
An assessment of current competitors also needs to be made.
Are you able to compete at their level?.
How much do you have to lift you game by in order to be able to do so? All of this information revolves around what you intend to sell them.
If you are wanting to create wealth, on any scale at all there is really only one known determinant.
You must have something to sell.
It doesn't matter what that thing is, as long as it is quality, gives (these days exceptional) value for money and comes with back up sales and service.
In terms of the product, it can be either a physical product, a digital product (an e-book), a service offering coaching or advice or some other type of skill and knowledge you are prepared to pass on to others (at a price).
Whilst this may sound capitalistic, remember why you are reading this article.
Is it not in pursuit of how to to create wealth.
If this is so then take the following scenario as an example of wealth creation in action and think of it this way Your toilet or sink blocks up and you need a plumber.
You look in your local phone directory and see an advertisement you like the look of and contact the plumber.
He / she then comes out and does the job of unblocking the water pipes.
The plumber uses special knowledge and tools in order to get success and do the job.
The plumber is simply trading, what they have learned for money, by applying their specialized knowledge to the tools they bring with them.
That is the basic formula of how to create wealth.
Knowledge traded for cash If you go back to the Jam making example, above, you would be trading your expertise in jam making, having made the finest tasting jam for miles around, for cash Recapped, assessing viability means asking yourself the following questions: Is this business in the right area (kind of business, or niche, or specific area, of the public market) .
Is the niche in demand where you are located, can you advertise, and deliver, to where prospective customers are.
Until you can discern this you cannot discern the viability of any business as a means to create wealth.
The trick is to find a business where there is always a viable market, which you can enter for very little cost, and make easy profits.