subject: Setting up a small business in a niche market [print this page] Whatever the reason, the bottom line is that you need to have a passion for it in order to make it work and be successful. To survive and then be successful as a small business requires tenacity and strong will, as a small business you personally feel all the pain, stress and disappointment and the hours you put in wont necessarily yield the results you deserve. Working for yourself opens you up to a range of vulnerability but at the same time the reward and the achievement is all yours. All businesses face the same pressure, however larger businesses can cope better with some of them: Credit Crunch: The credit crunch didnt spare anyone, large and small were affected. Small businesses who rely on a steady cashflow were impacted as their cash reserves dried up much quicker and those reserves is what they would have used to buy further supplies and stock. Despite the crunch a number of small businesses set themselves up during this period. This was probably the best time to set it up, as you could negotiate with suppliers and set yourself up without losing business, and once the economic conditions improved businesses had their process and procedures in place which enabled them to take advantage of the improvement Postal strikes: Those who post goods to their customers would have been impacted, it would have impacted sales as well as customer service. As frustrating as the strikes are, they are outside the control of any business and unless you or your customers are prepared to pay extra for a courier to deliver goods you have to put up with the fall-out. Raising funds and cashflow: Managing cashflow is hard for any business, but small businesses find it hard at first as their sales are random and their cashflow is eaten up through operating costs. Raising funds in this economic climate is hard, as banks are less likely to invest in small riskier businesses. Many people start their business by borrowing money from their family or using their own savings, this funds are limited but means there is no tie in with banks and interest rates. The income for a business owner is never certain which for some gives them the drive to be successful as there is no certain fall back on a salary as there is when working for someone else. Creating a competitive advantage: With limited marketing budget and a competitive market, its hard for small businesses to get the cut through they need to promote their business. Also they are competing for advertising space at high prices which sometimes they cant. The advantage they have is that they can target their audience and advertise in smaller publications which get them closer to their customer and gives them greater knowledge of understanding them. The pressures of setting up and running a business are huge and a massive risk, but when someone has the drive, passion and determination then anything is possible. The rewards outweigh the stresses and every small achievement is your own and not anyone elses. The pleasure you get of achievement is vast and worth putting in the effort to get.
