The amount of capital you have available to invest in a new business venture to a large extent will determine what types of businesses you can consider. Another factor is how much of that capital you are willing to risk. You could, of course, obtain external funding or investment. But it's not a good idea to overburden a new business with debt. And involving investors will dilute your equity in your new company.

Some businesses are more capital intensive than others. Take the start-up costs into account when deciding what type of business to launch. And don't forget to factor in the working capital you will need in the first year of trading and your personal financial commitments.

Business acumen can be applied to any type of business. An entrepreneur can in theory start up and run any kind of business. However, suppose you start a business way outside your area of expertise. In that case, you will likely need to hire for the necessary skills, and hiring employees, of course, costs money.

It is generally best to start your first business in a sector with which you are familiar. Then, you will understand the market, the competition and what operating in that sector entails. You can keep staff costs low in the early days of the venture. You don't necessarily need to be an expert in the field, though a working knowledge of the industry will undoubtedly help.

Some people will tell you to follow your passion when choosing a business type to run. Running a business related to a hobby, pastime, or a cause about which you are passionate will undoubtedly keep you motivated. Yet, passion is probably too strong a word in this context.

What is essential is that you choose something that will keep your interest and motivate you in the longer term. Indeed, it obviously wouldn't be a good move to start a business in a field that you dislike from day one. Bear in mind that you will be living with your choice 24/7 for several years. Your new business must be at least something that you can be proud of, and that will get you out of bed every morning!

Some businesses might provide you with a steady income for life. Other types of ventures might have the potential to make you wealthy. But not everyone wants to be the next billionaire. Consider what you want to get out of your new enterprise. Do you plan to sell your business at some point, for example? Or perhaps you plan to pass on your business to your children? These types of considerations will help you decide between sustainable business and a quick win project.

Whatever type of business you choose, you can expect running a company to be hard work. And you will probably work longer hours being an entrepreneur than you would in employment. But some businesses will infringe on your personal time more than others.

It's advisable to consider how well a type of business will suit your lifestyle. Suppose you like spending time on the weekends with the family, for example. In that case, running a store that must be open seven days a week would not be a good move. Or perhaps you like to get home at a reasonable time in the evenings. In that case, a business that requires lots of traveling would probably not be suitable for you.

Finally, you will need to do a bit of soul-searching before you select a business to run. In other words, can you picture yourself running your new company?

Are you able to manage people, for example? Or would something you can run alone be better for you? Can you see yourself dealing with high-pressure, face-to-face sales scenarios? Or would an online eCommerce business best suit your personality and talents?

There are business ventures to suit almost everyone. But you will find entrepreneurship less challenging if you choose a sector in which you feel comfortable.