If you were given a lump sum of money to start a business, what kind of business would you start?

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The key to starting a successful business is getting your mindset right that you are the business owner. Not the 'business-doer.'

The first thing that most get wrong when they start a business is that they think that they need to be an expert in the delivery of the product or service that their business will sell. Error.

For example, I have experience in digital marketing so I should set up a digital marketing agency or I am a trained chef so I'll open a restaurant or I'm a trained accountant so I'll start an accountancy practice (oops).

This is normally a BIG mistake. 

Why?

Because if the business that you start is one that you are proficient in delivering the services of, then you will struggle to stay out of that operational role. 

You will be 'doing the doing' rather than running the business as a business owner.  This is equivalent to giving yourself a 'job'. Just way more stressful.

So when evaluating business opportunities, don't be put off by the fact that you might not have any direct experience in it. This will likely prove to be a blessing going forward (as you can't then slip into the driving seat when the **** hits the fan!).

As you are starting with a lump sum of cash (per the Q), this arms you with the resources to invest in hiring the people who can do the work. You may need to invest quite heavily in a senior member of the team who is experienced in the field and who can lead the operational side of the business. You must stay responsible for strategy and overseeing the direction of the business (at all times).

Ideally, you will steadily build out a team who can run the business without you. For this you will need to start embedding good systems into the business from day one. This way your business will be run 'by the systems' rather than by your team (think 'McDonald's' as the ultimate example - a billion dollar business largely run by 16 year olds!). The advantage of this is that if one person leaves, the next person can pick up pretty much right away. Also, it builds the value of your business as any future purchaser knows that they are acquiring a 'plug-and-play' system that generates cash without them.

I would steer away from 'hot' new industries. As tempting as it might be to invest your cash into a pioneering new business and become the next Elon Musk, it is normally way too expensive. Expensive specialist staff to hire, expensive product development and, most expensive of all, a new market to have to educate on why they need your product or service (as it's so new). 

I am not saying never set up a trail-blazing new business, I just wouldn't make it your first - you can experiment down these lines once you've trousered your first few $mill!

So I would start a new business that: 

•  is in a field that is established but potentially under-served (geographically or by features that you might add).
• is in a sector that you are ideally not talented in (!) but you know where you can find people who are
• can be built on systems so that new team-members can learn the ropes quickly and it's not dependent on the specific talents of certain people in the team. 
• is scalable in the sense that there is a market big enough to allow your business to grow plus 'leave some growth in the tank' for a future purchaser.

That's how I would play it. 

Easier said than done though as the draw to edge into the operational side of the business is often too hard to fight off.  But you must resist. Otherwise you'll soon wake up and find yourself in a 'job' with a tyrant of a boss (aka YOU!).