subject: Is It Time To Have Your Own Small Business [print this page] Tired of having a boss? Working like a horse, yet someone else is getting rich while using your own ideas? Well, the ultimate solution to your problem - is put up your own small business.
That's right - start it small. Yes, you may have big dreams, but the safest way to go is by starting small, while learning the ropes and sharpening your skills. But how does a potential business owner chose the proper line of business? Is it just a matter of preference, interest, expertise, or just plain profit? The answer is all of the aforementioned.
Below is a list of guidelines that may help you in choosing a business you can grow with:
Choose one with the least amount of initial cash-out. Determine how much you are ready and willing to use as capital. Initial expenses would include inventory, such as office equipment, manpower, permits, rent/lease, and other forms of overhead expenses. If your budget is not too big, think of a business that requires a relatively small cash out (like food carts, and food stalls), in a line of business that interests you. Remember, if you don't have the enthusiasm for a particular line, then don't even think of dipping your toes into boiling water.
Choose a business that is novel & exciting. The trick is to jump in while the demand is high, so why go into a business which has a high risk of failure? Study the current trends. Find out what things fascinate your current market. If the current trend is social networking, then why not open a cyber-cafe or a computer shop? No sense selling typewriters when nobody uses them anymore. It's like selling Betamax players when the in thing are blue-ray dvd players. Don't be stubborn and insist on what you want. Focus on what the market wants.
It's not always true that there's safety in numbers. Just because other businesses like gift and novelty shops, cellular phone stalls and mini-groceries are raking at the box office, then the business you will set up will be a guaranteed hit. Take into consideration something called "saturation of the market". If there's a store similar to yours in every corner in your location, then the chances of you getting the majority of the patronage is considerably lessened. If you have a lot of competition, your only tool to ensure more sales is to lower the prices on your goods, to encourage the market to shift loyalties. But smaller item prices times more business does not always translate to more profit. As seen on the popular tv show, The Apprentice, you can sometimes sell less yet earn more compared to the competition - because your profit margin is bigger.
Try to make your business one of a kind. Of course, there's a huge risk in doing this, but if you are the only one in your line, then there's no other business to patronize but yours! Work towards uniqueness, and develop your products so that consumers are motivated to come back repeatedly If you do this, then you can say that you have a captive market. Example: be the only store in the entire building selling food 24/7. Potential hungry customers will find it convenient to patronize your store, instead of trekking to the next one which is blocks away. Of course, you also have to make sure your products are the best, otherwise, customers will brave the long walk, just to get better food.
Choose a business with rapid growth potential. Invest in research. Find out from the trade department which businesses are doing well, even in this rough economy. This guideline is especially true if you wish to recover your entire capital at the soonest time possible. This is the case when you avail of a loan which you used to fund the entire business. The longer it takes to break even, then the higher the interest rates paid on the loan interest.
Find out which ones also have the highest failure rate. Again - research. It would be silly to start a business in a field which has a very high risk of failing. You might as well just put your capital in a bank and hope that you earn enough for your basic needs.
The mother of all - choose a business which will eventually give you the highest net profit/earnings. This is the most basic reason why people put up businesses - to earn money. It's not just bragging rights owners put up their own business. The ultimate goal is to earn profit. If you're looking for entertainment or just something to do with your extra money, then don't put up a business. Handling a business and making it flourish is serious. You need to put your mind, soul and body into it.
