Small businesses are a great way to generate a full or part time income. Starting and profiting from a small business is easy if you follow some basic rules.
Find a product or service that sells. That sounds easy does'nt it? Well its a lot harder than you think. Lots of people have great ideas but if the market is not there then you are banging your head against a brick wall. Trying to create a market for a product or service is a very hard job, and usually costs a lot of money in marketing costs. My advice is leave that to the big boys.
The best way to begin is to find a market that already exists, and look at how you can do it cheaper and better. Its a lot better to take a small slice of a big cake, than a huge slice of a cake that has not yet been baked. Big companies are notoriously bad at offering good service, by starting up as a small business you can focus on offering a better service, and slowly take your share of the market.
Another way to make your small businees work is to keep your costs down. If you can work from home then you have a winner. Overheads are one of the major things that put small businesses out of business. If you can keep them to a minimum then you will have a much better chance of success.
Start small. Dont over commit yourself by taking out large loans to start up. Most small business can be started with less than £1000. If your business has a large repayment to make every month, then you are less likely to succeed than someone else that does not have that overhead.
Dont offer credit, get your customers to pay upfront, or when the product or service has been delivered. That way you do not have cashflow problems, which is another killer of small and large busineses. I know of companies that have gone bust with full order books, only because they have given their customers 3 months credit and they do not have the money in to pay the wages bill.
If you are a reseller of a product or service, then shop around for the best prices for your supplies. You may find that the difference in prices between wholesalers can be enough to determine the success or failure of your business.
There are many more rules that you can use to ensure your success, and I will be covering them in my next article, so keep your eyes peeled.
If you are considering starting a small business, or you already have a small business, and you need some advice please feel free to visit our Forum here E Business Advisors - Free Business Advice Forum
Kerry is a small business owner and advisor. Having set up many successful small businesses, the latest a small packaging company Abbey Packaging Supplies she now acts as an advisor to new business start ups, and a consultant to a number of small businesses.
Article Source: http://EzineArticles.com/?expert=Kerry_Bailey
2 comments:
Nice and informative post. I want to run my own business soon, so I'll keep this in mind. There are so many options to running a business that lately I've been thinking about buying a business instead of starting one from scratch. I'm not sure what kind of format though. Franchise? Non-franchise? Home-based? I don't know. Do you have any suggestions or advice? Thanks.
@ Robin - Yeah, there are a lot of options, which can be good and bad. It's best to do as much research and due diligence before you make a final decision. If you really want to buy a business, then I suggest searching the Internet to what is available in your area. There are sites, like BizTrader.com, which are online global marketplaces where you can buy and sell businesses. They can also provide you with additional resources like finding a lender, broker, etc.
I also suggest checking out current books and magazines for help and advice. Local small business groups can also be very helpful, and it doesn't hurt to network.
Good luck!
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