Choose Wisely: The Right Industry Shapes Your Business Success

Starting your own business is one of the most exciting things you can do. It’s also one of the most challenging. However, one early decision can make those challenges more manageable: selecting the right industry.

It’s all too easy to pour energy and money into building up your company, only to hit wall after wall. Many entrepreneurs then realize their struggle isn’t due to a lack of talent or hard work, but simply because they’re in the wrong industry. Your decision can’t be based purely on passion or familiarity—it requires strategic thinking about where you have the best chance of success, factoring in several key elements.

This article covers the essential considerations for picking your business’s industry, emphasizing why early, strategic selection ensures a practical and realistic decision.

Learn The Industry First

Every industry functions uniquely, differing in its revenue generation, client retention, sales cycles, operating costs, volatility, and scalability. Let’s look at two quite distinct examples.

First, if we think about marketing agencies, then we’re thinking about a service business that has low capital requirements and high upside if you land the right clients. However, it also involves numerous moving parts, including creative teams, account managers, paid media, data tracking, constant pitches, and ongoing delivery.

And even if you’re great at it, client acquisition can be tough. It’s great when you win an exciting client, but keeping them happy for five to 10 years is another story. Meanwhile, contracts can be short-term, and performance expectations are high. Of course, the competition is fierce. All of this can be rewarding, but it’s far from a slam dunk, and you are always on—there’s never a point when you can take a break.

Second, let’s think about managed office centers or serviced offices. You lease a building or several floors of a building, renovate it, brand it, and then fill it with tenants. Once occupancy reaches over 80 percent your day-to-day business becomes relatively straightforward. Monthly rent is predictable, and contracts are often locked in for six to 12 months or more. Your day-to-day work is about managing facilities, collecting rent, and providing support services. Unlike marketing, you’re not reinventing the wheel each week.

Let’s be clear. Both industries we just looked at can be profitable, but one requires a constant hustle and high client churn risk, while the other is built on real estate and offers more stability.

What does this tell us? Essentially, it’s a reminder not to pick an industry because it’s what you know—pick one that will set you up for success.

Minimizing ‘Moving Parts’ And Minimizing Risk

If you’re early in your entrepreneurial journey, keeping things as simple as possible isn’t the worst thing you can do. Minimizing complexity can be the difference between burnout and gaining real momentum. And businesses with fewer moving parts tend to have lower operational risk and are often more scalable.

Let’s get into specifics: if you’re deciding between starting a custom furniture business and a subscription- based software-as-a-service (SaaS) tool, there are a number of factors to consider. The furniture business is tactile, and the product you are creating is beautiful. This in itself is rewarding. But then think about all the moving parts involved— sourcing materials, labor, logistics, warehousing, shipping, custom requests, and tight margins. That’s a lot.

Now, if we compare that to a SaaS tool that solves a specific problem for a niche market. Once it’s built, and as long as the core product works, updates and maintenance are regular, but far less chaotic. If your customer acquisition and retention strategies are solid, the business can scale more easily. You’re not dealing with warehouses or your products getting damaged in transit.

So, when you’re thinking about the choices you need to make, consider these questions:

> How many people will I need to manage?

> How dependent is this on constant sales activity?

> Are margins healthy or tight?

> How scalable is the model without me working 12 hours per day?

> Is the day-to-day work going to be a constant firefight?

Balance Passion With Practicality

There is much to be said about “do what you love,” but caution is needed. In the end, you can’t succeed long-term if you have no interest whatsoever in the industry. It’s your passion that will create energy and fuel persistence. Which you’re going to need.

But passion alone won’t help if the business model is not solid. If you love producing a certain product, but the market is already saturated, then it’s going to be tough. So, it’s a question of self-awareness matters—do what you know, but also ask yourself whether what you know has a place in the current market.

The sweet spot exists when your business leverages your skills and interests and operates in a growing, profitable industry. You don’t need to be deeply passionate about logistics or cloud security— but if you find the space interesting, and you’re good at solving these kinds of problems, then that might be enough.

Do Your Research

The most successful entrepreneurs don’t just follow their gut. It may play a role, but they then go out to validate their ideas. This doesn’t necessarily mean you have to become an industry analyst, but it does mean you do your due diligence.

So, make sure you look at market growth trends, and understand clearly the profit margins across different industries. Knowing the level of competition is also crucial, as is identifying customer acquisition costs.

Keep in mind that businesses in “booming” industries like e-commerce struggle with ad costs, returns, fulfilment logistics, and poor margins, while “boring” industries like waste management or pest control can generate steady, high-margin revenue.

Long-Term Thinking Wins

When you choose an industry, try to think a decade ahead. Where are things going? Is the market growing or shrinking? Will technology eliminate it, or further enable it? And are you building something someone else might want to buy at some point? Think about the lifestyle you want to live too. Will you have flexibility, and if so, when? Will you always need to attend every single meeting? At its core, are you building a business, or just giving yourself a very demanding job?

Regardless of industry, business is never easy. But it doesn’t have to feel like pushing a boulder uphill every single day. Choosing the right industry sets the stage for everything—easier operations, and a better chance of growth.

Ultimately, choose something that aligns with your capabilities and the current market reality. Combine what you enjoy with what works.

About The Author

Jay Shaholia is the COO of Meydan Free Zone in Dubai, UAE, where he oversees and optimizes core operational functions to support the strategic growth and success of the organization. Previously, he was Group Project Head at the Creative Zone group of companies where his responsibilities included strategic marketing initiatives, scoping, and managing financial audits for new ventures. Shaholia holds a degree in finance from the University of Wollongong and is a certified member of the Association of Chartered Certified Accountants (ACCA).

This article first appeared in the June 2025 issue of Inc. Arabia magazine. To read the full issue online, click here.