Nothing is as exciting and satisfying as starting and growing a small business. Not only can a small business make you financially stable, but it can also benefit you personally by improving your life. It can provide you with job security (unlike when employed), great prosperity, and most importantly, give you an opportunity to change the world.
Of course, you may experience few problems along the way but without a doubt, the benefits of starting a small business outweigh the risks. That being said, let’s look at the advantages of starting a small business and later on show you how to start one. We are also going to give you some of the best small business ideas to consider.
Advantages of a Small Business
One of the biggest advantages of starting a small business is the potential to make more money. Your business is much more likely to generate a lot more money than you probably ever earned in your 9-5 job. As an entrepreneur, you even have a bigger opportunity to create multiple income streams from your business.
That’s one big reason why you should consider starting a small business.
Independence is perhaps the biggest reason many entrepreneurs open up small businesses. It allows them to be independent and become their own bosses. By becoming your own business, you get to make decisions that you feel will help your business grow.
Furthermore, it’s a great way to avoid dealing with a nasty boss.
Low Start-Up Costs
Another distinct advantage of starting a small business is the low starting and development costs. One of the biggest reasons why some large-scale businesses fail is mainly because of the exorbitant starting and development costs.
With a small business however, the cost of starting the business and growing it is relatively low. In general, you get to develop your business incrementally without having to commit large amounts of money. To keep the costs even lower, you can start the business right in your home and as you gradually build your customer base, you can later on open a store/office.
Some good examples of small businesses you can start at home are cake baking, making cooking sauce, mat makings, and many others. We will list a number of good small business ideas below.
Easy to Manage
Unlike large businesses which are both hard and costly to manage, a small business tends to be less stressful to manage. This is partly because the business is still small and therefore probably doesn’t have many employees. This is unlike large businesses which are always under constant pressure to meet larger targets. There are also lesser expenses, which makes it pretty easy to manage.
So with less to worry about, you will have less stress to deal with.
Ability to Adapt to the Market Faster
Unlike large corporations, a small business can easily and quickly adapt to the changes in the market. For example, when consumer trends move towards a particular product or service, a small business can quickly incorporate the products/services. This is unlike large businesses which have to set up expensive and time-consuming advertising campaigns to promote those particular products or services.
As a small business owner, you will get to embrace new opportunities as they come, which can help grow your business a great deal.
Faster Response to Customer Needs
Because of the close interaction with your customers, you get the opportunity to learn about their needs and concerns. By understanding their needs, you will be in a position to satisfy their particular needs and respond to their complaints quickly. This can help build a good long-term relationship with you.
Improved Quality of Life
One of the reasons why you left your 9-5 job is because you wanted to do something you love. For example, if you’ve always loved baking, starting a baking business is a great way of seeing your dream come true.
It gives you a chance to improve your life because you’re doing something you love, and because you feel comfortable in the environment you’re working in. No one is bossing you around, so you have a reduced risk of becoming stressed and depressed. You also get to spend more time with your family.
Additionally, the fact that you’re now making more money than before gives you a good opportunity to live a better lifestyle. You generally feel happier, healthier, and completely satisfied with your life!
How to Start a Small Business (A Step-by-Step Guide)
Starting your own business is probably the best decision you will ever make. It may demand a lot of your time and focus but it’s all worth it.
Here are some basic ideas and guidelines to get you started.
Brainstorm a Business Idea
First things first, you need to choose a viable business idea. It could be a hobby, a product you’ve always wanted to make and sell, or a service you feel will satisfy customers’ needs. You can also do a market research. With the right idea, it will be easy to create a successful business.
Another alternative is to open a franchise of an established company. You won’t need to come up with a business idea on this.
Write a Business Plan
With an idea in place, now it’s time to create a business plan. In the business plan, including important things like the purpose of your business, your target market, your goals, how you will fund your business, cost of operation, and other important details. There are plenty of business plan templates available online that you can check out, just to have an idea.
Plan your Finances
Starting a small business involves some initial investment as well as funds to cover operational expenses. You need to assess and plan your finances accordingly. Create a spreadsheet that estimates costs for your business including licensing and permits, inventory, equipment, legal fees, insurance, market research, branding, trademarking, etc.
With an estimate of finances, you will be in a position to organize yourself, like where to source funding capital.
Choose a Business Structure
Next, choose an ideal business structure. Your business can either be a sole proprietorship, partnership, limited liability company, or corporation. Choosing a business structure will have an impact on a number of factors including the business name, licensing and permit, your liability, and tax filing.
Choose and Register Your Business Name
The name of your small business will play a crucial role in almost every aspect of your business. So be sure to choose a unique and brandable business name. Once you pick a nice business name, don’t forget to register it.
Get Business License and Permits
Research what licenses and permits apply to your small business and acquire the necessary paperwork.
Determine Your Legal Business Structure
Your legal business structure will affect everything in your business- from how you file taxes to your personal liability. You will need to file certain forms to fulfill your state and federal income tax obligations. You can seek the assistance of a lawyer to assist you with the legal process.
Set Up Your Business Location
The location of your business will have a huge impact on its growth and success. Choose a location that potential customers can find quickly. Also, decide if it’s better to buy or lease your business place.
Promote Your Business
Once your business becomes fully operational, you will need to attract potential clients and customers. It’s time to get your brand out there. You can promote the business offline with posters or in the newspaper, or use social media platforms like Facebook to spread the word about your new business.
Grow Your Business
Growing your business will require a lot of time, effort, and a little investment. Consider offering your customers discounts on products, free samples, free services, or simply collaborate with more established brands. You can even reach out to influential bloggers to promote your business.
Top Small Business Ideas
If you haven’t decided what business to start yet, don’t worry. We’ve got your back. Here is a long list of small business ideas that you can turn into a lucrative business:
- Interior decorator
- Residential cleaning service
- Beauty salon/spa/massage therapy business
- Dog walking
- Electronics repair
- Home inspection
- House organizer
- Hotel or restaurant
- Bar, microbrewery, nightclub
- SEO Consulting
- Tutoring- offline/online
- Bicycle repair
- Resume and business plan writing
- Freelance writing business
- Editing and proofreading
- Life coaching business
- Personal training business
- Accounting business
- Sewing and alterations business
- Construction business
- Mechanic business
- Plumbing, electric, or handyman service provider
- Cake Baking
- Flea market vendor
- Etsy seller
- Web designer
- Event planner
- T-shirt designer
- Yoga teacher
- Dance instructor
- Pool cleaner
- Affiliate marketer
- Social media manager
- Meal preparation service
No matter how rewarding your 9-5 job may be, finding the right business idea and eventually starting a small business is even more fulfilling. Hopefully, this comprehensive guide and business ideas will help you get started on your entrepreneurial journey.