I Want to Start A Business But Don’t Know What – Best Businesses to Start in 2024

Introduction

So many have this question, “I Want to Start A Business But Don’t Know What?” but in today’s article, this question is being answered. These are the best businesses you can start in 2024, even if you don’t know how to start a business or are unfamiliar with creating one. Warren Buffett says great businesses have high gross margins, so what is gross margin? If I sell a product for five dollars, but it costs me one dollar, my gross margin is $4 or 80%.

See the best businesses where you have the highest margin and sell for the highest dollar amount. What you don’t want to be is like a restaurant where the gross margins are. Only 45% of you want to be on the upper end of 70, 80, or even 90% gross margin. And to do this, you need to understand all the industries. That’s why I’ve spent a lot of time analyzing all the best sectors and evaluating all the gross margins from lowest to highest that you can start.

Today, with minimal experience, make this year the best year of your life. I discuss the four best business models for your deep understanding. These best businesses help you to start your business and clear all types of queries regarding how to start a business, even if you don’t have any experience or knowledge. I’ll give you all the information about these four best business models in today’s article.

1- Product Business

The first best business is a product business. Typically, these companies have a 50% or 60% gross margin. I’ve been involved in some incredible product companies like Pela, which makes a biodegradable phone case or laundry sauce, a modern-day detergent company, and Lomi, which makes a food composting device. I mean, these are some of the best companies out there.

I’ve seen people lose their shirt-building product companies because they don’t understand how to get distribution, get sales, and build the product efficiently. Essentially, they put all their savings into a product and don’t get any revenue. So, if you want to make a product business work, great. These are the three things that you need to do.

Pre-Sell Your Product

Number one is you have to pre-sell. Most product companies use Kickstarter, Indiegogo, or another crowdfunding platform to validate demand for the product without losing money. You’ve probably been burned by investing in some crowdfunding campaigns, but the best ones know how to do them. Promote a market, get the money, and then use that actually to build the product. 

Go Direct-to-Consumer

The second thing is you have to direct to the consumer. You have to skip the retailers because if you go through a wholesaler to a retailer, there are ample cash flow issues by the time you get paid. It’s tough to make a product business work. That’s why Amazon has been a big category for many people entering the product space.

Invest In The Brand

The third thing is that you have to invest in the brand. This means making sure they use premium products, telling that you care about Word amount, that you focus on views, that you look for opportunities to get, and pressed to drive traffic to the business because that’s what’s going to create the flywheel to make a product business work. 

2- Agency Business

The second best business is an agency or sometimes a service business. The margins are between 60% and 70%. I’ve learned over the years that the most accessible companies are ones where you take a skill they already have, maybe as an employee. Then, I can offer that skill to other businesses and get paid to do it for those businesses.

What do you currently do, or teach them how to do it for themselves? Now, I’ve seen many people launch different types of agencies. So, social media marketing agencies, etc., scale and make money, not just have a low-paying full-time, sometimes double full-time job. They focus on these four things. 

Slove a Strong Pain

Number one is they focus on a solid pain in the market. If you think about it, you could start an AI company today. Where you go, you analyze businesses and all the inefficiencies and then introduce them—the AI tools to solve those problems. You would make a ton of money because companies will pay for anybody who can show them how to save or earn money using AI, a modern-day way of getting leverage. You can even negotiate where you get paid more based on how much money or time you save.

Productize Services

Number two is productized services. See, if you sell work for a time, you’ll always get paid for your hour. You want to get paid for an outcome and to do that, you have to focus on one thing. If you’re a designer, focus on logo design. If you’re a programmer, focus on the onboarding experience. If you’re a salesperson, focus on the discovery call and teach people how to do one specific thing so that you can productize it. As you grow, you can buy back your time by having somebody else support different aspects of that productized service.

Recurring Revenue

Number three is focus on reoccurring revenue. See, too often, when we start, we want to get paid to do the thing. The problem is that every month, you have to get paid to do the thing over and over and over again. So you start at zero at the beginning of every month. Still, what you want to do is sell a service, an ongoing reoccurring revenue service for whatever that work is, so that you come in, you evaluate it, you support them, you keep doing more work, and that way, you can sign them up for three months, six months, twelve months of service and you start building the revenue base. 

Scale With Systems

Number four is you want to scale with systems. The whole philosophy is to build a business. You don’t grow to hate the way we do. That is by replacing yourself with a system, a checklist for delivering on that agency work. Then, that way, you can hire people to get them to do the job, following your process that guarantees the results for the customer.

3- Coaching Business

The third best business is coaching, with 70% and 80% margins. This is also a consulting or information online training course that kind of business, and I know this one is perfect. I run one of the largest coaching organizations for software CEOs. I’ve been involved in creating multiple courses and pieces of training and seminars and all this stuff for some of the most prominent coaches that you know of online. Even for me, I hesitated to launch this.

I built a whole technology company called Fairy.fm because I was too scared to call myself a coach and put it off. I mean this platform we made. I did over 1300 clarity calls over two years and never permitted myself to call myself a coach. I want to tell you it’s been one of the most rewarding things to decide to go all in on being a coach and working with some of the best CEOs out there, and I want to encourage you to consider it. But if you’re going to do it, these are the three things you must do, or you’ll eventually end up hating being a coach. 

Sell Your Expertise

Number one is to learn to sell your expertise. I mean, this one is a fasting one because I know world-class people and what they do. They’re the fittest person I know. Or they’re incredible. Networkers so talented in their art would never feel comfortable getting paid to teach somebody else to do what they’ve done, which is crazy. I mean, you’ve become great at the thing you’re doing, and people have noticed.

I want to encourage you to allow other people to pay for that advice because, in doing so, you’re helping them. Frequently, the transformation happens during the transaction. So, investing in themselves by hiring you to teach them how to become world-class at what you do is where many of the values are created. 

Marketing Strategy

Number two is strategy. Most people think I know this information, so I can’t give it away. I’m going to tell you something controversial. I want you to give everything a bit away. It’s called education-based marketing. See, I believe the information wants to be free. Then, you get paid for the support of the implementation.

So you want to teach everything, you know, around the topic or accessible on social media at seminars, get on stages speak, share it all the best stuff, and by doing so, you’re going to build an audience of people that want to learn more from you, and they will pay you for the implementation. 

Build A Community

Number three is to build a community. See, I had a coach once, and she was incredible. Her name was Linda. I learned so many things. She had brought a company public and was just an incredibly valuable coach. The challenge was that I knew she was working with other incredible entrepreneurs, and I never got to meet them. She never said she organized a dinner or meet-up so I could also get value from meeting the client. She worked with. I’m telling you.

If you are a coach, having a community where other people from that same coach can connect and meet each other. That’s where a lot of value as a coach will come from: helping you keep people in your world and allowing you to send their support as you grow the business. 

4- Software Business

The fourth best business is software, with gross margins between 80% and 90%. If you think about it, having a new customer user software costs nothing like server data storage on some computer. I learned this personally back in the 2000s. When I started writing code in building software, over the years, I found it so amazing that I could build some software once. The more it grows, the less it costs me, and as long as the servers don’t change, that code will run the way it has forever.

Now, I have a lot of friends who want to get into software, but what they miss are these key points to make the software work. After all, if you don’t have people using it and loving it how you need to, it won’t create the margins because customers will come, and they will go. 

Build A Sticky Product

Number one is a sticky product. You want to build a tool that solves a problem in its business, where they have to use it every day. Think about things that are painkillers, not vitamins. Do you want to create something? That’s a must-have problem, solved, not a nice to have, like vitamin think, you know, dating sites where it’s just like a one and done or taxes, where they do it once a year. Those are not tools. They’re going to have daily usage, like Dropbox or Slack. So you want to look for sticky problems regarding the product, solve them, and keep them around. 

Pick A Boring Industry

Number two is a boring industry. Most people build software for marketing or sales; it’s what they know, but the problem is that the customers will be swapping off your product to your competitors. You want to be in boring industries like local services every three to six months. Lawn care bodies, shop software, and government are a fit. You want to find customers. They are not always looking for the latest whiz-bang, but you can solve a core problem in their business using software. 

First Time User Experience

Number three is first-time user experience, also pronounced FTUE. The key is that you want to look at your software like the level one of the video game. When you start playing a video game, they don’t just drop you in and say start fighting or racing as they walk you through the process. They teach you you’re not playing the game, but you’re playing the game.

That is the same concept you want to do with your software so you don’t overwhelm people and get them to activate or receive core value. Most people try to add too much to the products, especially when people sign up, which confuses the customer. So, you want to focus on that first-time user experience to ensure they activate and receive the value you promise on your homepage.

I Want to Start A Business But Don’t Know What? You’ve to do.

Some so many people want to start a business but don’t know how to start and run one. This makes people hesitate, and they never start their own business. I have researched, and with the help of my own experience, I discovered the four best business models for those people who want to start their own business or don’t have proper knowledge. I have discussed all in detail and highlighted all the critical points. If you follow up on these points in these four business models, there’s no reason for your business not to succeed.

To start these businesses, you don’t need any exceptional experience. You only need to take the first steps to start your business and follow the strategy. That’s all you need to do. Those are the best businesses. You can begin in 2024, and if you want to learn how to become a millionaire, click the title and read about it.