The following six-step process can be used to decide what type of business you should start.

Step 1. List the problems in the marketplace.
Every successful entrepreneur began with solving a problem. People who solve problems make money. Think about it. Dentists solve teeth problems. Mechanics solve automobile problems. Lawyers solve legal problems. What problems will you solve? Make a list.

Step 2. Identify corresponding business opportunities.
Now determine how you plan to solve those problems and transition them into business opportunities. Imagine how you can improve something better, smarter and faster than potential competitors. Be creative and make a list with an open mind.

Step 3. Determine the needed capabilities.
Learn as much as possible about every aspect of your potential business opportunity. What are the technological, equipment, legal, investment and time requirements? Remember, most new businesses fail because of poor management or the lack of a market opportunity.

Step 4. Project the financial resources needed.
Analyze and determine the financial side of the remaining opportunities. In this step, determine the expected sales, expenses, profit and project cash flow required for each opportunity. Ensure that your financial projections are reality based.

Step 5. Rate the opportunities.
Each opportunity should be rated on three criteria: (1) personal interest, (2) financial worthiness and (3) potential risk. Rate each opportunity on a scale of 1 to 5. If the opportunity is something that you would love to do for the rest of your life and can create wealth for your family with minimum risks; then give it a 5. Be honest and do your homework.

Step 6. Select the business opportunity to pursue.
At this point, you should have narrowed down the opportunities to one or two potential ventures. If the six-step process has identified an attractive opportunity, you are now in position to go on to the next step, conducting a marketing research to determine whether the market opportunity is truly worthwhile.