Business magazines and Web sites regularly publish lists of the best businesses to start. These businesses are usually in rapidly growing industries like health care, senior services, green energy, and specialty stores. The idea is that businesses in these industries satisfy emerging environmental trends and sell products and services that are likely to be in high demand for some time. So if you started a business, would you be foolish not to pick a business from one of these lists?

The answer is that it depends. It depends on whether the business is something that you’re passionate about and helps you meet your personal goals and aspirations. The business you select should also be congruent with your skills, abilities, aptitudes, and talents. There’s a theory in organizational behavior referred to as person-organization fit, which says that a person’s satisfaction on the job is not a function of the person or the organization but a function of the fit between the two.^[1] In a start-up context, this theory is a reminder of how important it is for prospective business owners to have an accurate understanding of their abilities and skills before settling on a specific business opportunity. It’s not a given that we automatically know what our best skills and aptitudes are. If you’re uncertain, ask friends, family members, and coworkers for their input or seek help from a local college or university. The placement centers at public colleges and universities normally have skills assessment tests available that can help you better understand the type of business opportunity that is the best match for you.

The best business to start is the one that matches who you are, what you know how to do, what you like to do, and what resources you have.

It’s also important to have an intuitive sense of whether a particular opportunity is right for you. Tim Berry, the founder of Palo Alto Software, says that he is frequently asked by prospective business owners “What’s the best business to start?” He tells people to look in the mirror. The best business to start is the one that matches who you are, what you know how to do, what you like to do, and what resources you have. Berry is quick to add that a good business also has to sell a product or service that people want to buy.^[2] This is a topic you’ll explore more in Part II, “The Truth About Generating and Testing Business Ideas.”

The business you select should also be consistent with your lifestyle expectations. The old adage “Be careful what you wish for” is as true in business as it is in other areas of life. For example, if you identify a business opportunity that has a large upside potential and obtain funding from a professional investor, you should know what to expect. Most professional investors shoot for a 30- to 40-percent annual return on their investment.^[3] This level of expectation will force you into a fast growth mode literally from the start, which typically implies a quick pace of activity, a rapidly raising overhead, and a total commitment in terms of time and attention on your part. The upside is that if the new company is successful, you’ll normally do well financially. If what you’re really after, however, are nonfinancial rewards, such as the ability to work in an area that is personally rewarding to you or the ability to better juggle family and job-related responsibilities, you may not want the pressures associated with investors continually looking over your shoulder. A less ambitious, but perhaps more personally satisfying, business may be a better choice for you.

The business you select should also be consistent with your lifestyle expectations. The old adage “Be careful what you wish for” is as true in business as it is in other areas of life.