How To Start Your Own Small Business

Discussion in 'Starting a Business' started by Terry Kyle, Jul 25, 2008.

  1. Terry Kyle

    Terry Kyle
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    How To Start Your Own Small Business

    So you want to start your own small business BUT don’t want to lose your shirt or blouse if it all screws up?

    Cool. Makes sense.

    So, apart from deciding to go for it, aim to apply these principles in choosing your business and you stand a very good chance of making it:

    1. The small business can be operated from HOME (i.e. no giant additional rental overheads).

    2. The business does NOT require a large inventory of product (another financially crippling overhead) i.e. it is service-based rather than product-based, at least to begin with.

    3. The business has SEVERAL income streams (e.g. service as well as sales - look at hair salons selling high-markup products AND hair care).

    4. The business involves a product/service that buyers pay for IMMEDIATELY and not on a 30-day/60-day/90-day/120-day basis (late payment of accounts has sent countless small AND large businesses to the bottom of the river without a scuba tank).

    5. The business relates to your EXISTING skills/expertise (or it’s something you are prepared to develop your knowledge in very quickly) so avoid offering neurosurgery in your neighbourhood unless you spent the last 10 years cutting open people’s heads in a hospital.

    6. The business has a considerable/total CASH-IN-HAND sales element.

    7. The business still earns income when the owner is away (e.g. vending machines) - not necessarily vital but pretty nice.

    8. The business is not too reliant on finding good staff (finding and keeping quality staff is one of the biggest issues for all small business operators).

    9. The business is not based on too small a number of clients (e.g. an advertising agency with only 1 client) - this gives the client the power and not the business!

    10. The business appeals to human NEEDS that demand constant fulfilment rather than occasional wants (the food retail business is far more bankable than many other service businesses e.g. people have to eat but they don’t NEED to have their tarot cards read - mind you a tarot card reading service is very cheap to set up and actually a pretty good small business model).

    11. The small business has a clear point of difference from possible competitors e.g. it is faster; it is open after hours when others are closed; it comes to the client’s home; it caters to a specialized niche such as the disabled or gay or senior market; it is much simpler than existing competitors; it is in the best possible location; or it is much cheaper than obvious competitors.

    Without such a characteristic, a small business will probably struggle.

    12. The business is one that the owner clearly ENJOYS or has some natural affinity with e.g. a car enthusiast importing and selling used Jaguars from Britain - the new XK rocks!

    Good luck and keep me posted on your small business journey!
     
  2. DEADMAN

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    Hmm. Very technical and common sense kind of strategy.

    Nice post, keep it up!
     
  3. ritajones56

    ritajones56
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    Essential information for any kind of entrepreneur, awesome post!
     
  4. Nazreen

    Nazreen
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    I especially like No. 5. It's really hard to setup a business that you're totally unfamiliar with. It's the same as the saying "look before you leap". Before going or leaping into any kind of business, you must first gain knowledge in that area by first looking into it. It would be good though if, as said above, the business relates to an already existing skill or expertise that you have.
     
  5. Fergal

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    There are some great points in that article and they provide a useful guideline when evaluating a potential business idea. Unfortunately it is difficult to find a business that satisfies all criteria.

    Success factors change over time. For example, point 10 mentions food retail, in today's economic environment it would be very difficult to get finance to start a food retail in competition with the major multiples.
     
  6. deepak_sharma

    deepak_sharma
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    All these points are very much useful for starting up a new business.But one point which i want to stress is that before starting a new business you should identify your target customers.
     
  7. Fergal

    Fergal
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    Yes identifying and learning about your target market is probably the single most important factor in any business, large or small. Surprisingly the article above does not appear to cover that.
     
  8. honitel

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    Principle #9, that make sense at all and principle #11 helps a lot with that!
    Keep posting Terry! ;)
     
  9. MichaelAllen

    MichaelAllen
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    Some effective and simple things that are often over looked. Great read
     
  10. akandcoindia

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    Credit is normally a main factor that dooms new businesses. Try therefore to be in a business that has most of its sale in cash .... like restaurants
     
  11. pramodlomte

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    Great post,very informative and helpful information.
    Thanks for sharing this informative piece.
     
  12. kimipatel

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    Very Promising And energetic. It's very helpful information... country like India so many ppl want to Make Business. But lack of Knowledge they didn't go... After this post read. It's developed knowledge n confident. thanks for sharing...
     
  13. akandcoindia

    akandcoindia
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    Nice info .... Thanx
     
  14. jcworlditsme

    jcworlditsme
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    Interesting advice, certainly seems practical I must say.
     
  15. honitel

    honitel
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    I know right, Michael?!! Simple things might be overlooked and you will in the point where you will hang on because you miss something important which you simply neglect in the first place!
     
  16. firstchoicecar

    firstchoicecar
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    Nice post dude, Well in starting a business it all comes from a good planning.
     
  17. shilpakalyane

    shilpakalyane
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    There are so many Business Site today and Bizeso.com is also one of them visit it its also very good
     
  18. Navida

    Navida
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    Very helpful points, If you have existing skills for any business then you should go for it. Try to cover niche of your local market. This is good to start your own small business rather than finding other work.
     
  19. honitel

    honitel
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    Promising! Yeah, that's the word! Promising information here :p
     
  20. gogreenbusiness

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    Now that what i sign up for... doing business :) Thanks for sharing this great insight. Well, i have most of them kept in my mind and your post is a great refresher to me. Have a great day man :)
     

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