Small Business Ideas

Tips And Ideas For Starting A Small Business

Starting a small business is a great way to achieve financial independence while keeping operations manageable. However, most people find that the biggest hurdle is deciding on a small business idea. Before you start picking out random small business ideas out of a hat, there are a few questions you should ask yourself.

What Are The Best Small Business Ideas?

The best small business ideas fill a need for your customer base. Small business ideas should be accessible, sustainable, and able to weather most economic conditions to ensure long-term success. There is a lot that goes into taking small business ideas and turning them into viable products and services to offer to consumers.

How Would You Like Your Small Business To Operate?

When looking at small scale business models, one of the first things you should decide is which one fits your lifestyle and schedule the best? Do you want to work from home? Do you want to travel a lot? Do you want to have a regular commute to a store front or office? There are small business opportunities for each scenario, but picking one will help to narrow down the options of what you want to do.

Home Office? Physical Location? Virtual Business?

When looking for small business ideas, you will need to think about what type of business you want to run. Do you want to launch business ideas you can run from the comfort of a home office, meeting with clients when necessary, but primarily handling business over the phone? Does your business require a physical location with equipment, inventory, and supplies? Could you run your business online, which lowers the overhead of having a physical store, and allows for a broader reach to potential customers?

What Kind Of Budget Are You Working With?

A budget will ultimately narrow down your small business options considerably, but you need to ask yourself if you want a home-based business with low overhead? Does your dream business require specialized equipment? Do you want to start a turn key operation like a small scale franchise? These questions may seem overwhelming, at first, but the next section should help you dial in on your ideal small business idea.

What Is Your Passion?

Do you like to cook? Do you like instructing others? Do you want to get paid for your experience and knowledge? Do you like exercising? Do you like helping others achieve their goals? If you pick a small business idea based on your passions, hobbies, or areas of expertise, then your business will seem less like a job and more like getting paid for doing the things you love. That in itself will serve as the inspiration to launch and operate a successful small business.

Look At The World Around You

Some of the best small business ideas can be found by taking a critical look at around your house, your neighborhood, the nation, or the world at large. Look at what industries are performing well, or aspects of living which can be improved or made more convenient. Think about what industries are underrepresented in your area, and if those niches can be filled in a viable way. For example, if people in your immediate area have to drive a long distance to get access to certain goods or services, then it might be a great idea to offer those things in a more convenient location.

Look At Market Viability

Simply because something is missing from your immediate area does not mean attempting to fill that void is a great small business idea. For example, if you live in a particularly rural area, building a high-end apartment complex may not be the best small business idea. The clientele does no exist to fill the vacancies, and people usually choose to live in apartment complexes because they offer affordable rates, as well as easy access to shopping, work, and schools. On the other side of the coin, urban areas probably have little need for agricultural equipment dealers. Both examples are obvious exaggerations, but they are designed to prove a point. You need to think critically about your small business ideas and follow them through various scenarios on paper before sinking money into them to make them a reality.

What Will You Do If There Is An Economic Downturn?

During rough economic times, small businesses are usually the first ones to feel the financial strain. The best small business ideas provide something that people will utilize regardless of the economic climate. Consumers will cut back on major luxury expenses first, but have no problem spending money on smaller “fun” things, if they are offered at an affordable price. When there is a recession, fast food franchises stay in business, while automotive dealers experience sharp drops in sales. When trying to think of small business ideas, ask yourself if what you are offering to customers will continue to be in demand if economic conditions take a turn for the worst.

Who Are Your Immediate Competitors?

In every industry there are competitors. No matter the products or services tied to your small business ideas, you will still need a way give customers a reason to go to your business over established companies. It is impossible to be all things to all people. Department stores and mega-stores already exist. Going wide is a sure fire way to go bankrupt right after launching. Instead, try to find your niche audience and gear your small business ideas to meet those potential customers. Niche business ideas have a lot more appeal to consumers because business owners typically have a depth of knowledge that more general businesses do not. It is the same reasoning behind why general practitioners refer patients to specialists. For example, Wal-Mart prides itself on having a wide range of products at low prices. However, Wal-Mart does not have actual salespeople, per se. If you want an automotive part, but are unsure which one to get, or have questions about an appliance, you have to either guess by reading the description on the box, or do a lot of research on your own. However, if you go to a business that specializes in the things you need or want to buy, you will be able to talk with someone, get some insight, and make an informed decision. When launching a business idea, figure out both your direct and indirect competitors, and zero in on your customer base to provide quality service and information so your consumer base stays loyal and comes to you as a person of authority in your field.

How “Niche” Is Your Business Idea?

Related to competition and market viability, there is a danger some businesses run into of being too focused to draw regular business. If you live in an area with a bunch of hamburger franchises, opening another one would make no sense. The market would be saturated with businesses specializing in hamburgers. There is no “market share” to grab because customers are already spending their money at other establishments. So you rethink things a bit and decide to open a business in an untapped market in your area. You decide to narrow your focus to set yourself apart from any competition and open a brick and mortar business specializing in restoring classic Dodge Darts. People love classic cars. People all over the country own classic cars and like to keep them in good condition. Of all the classic car owners, only a few have a Dodge Dart in their garage. And of the people who own classic Dodge Darts, it is highly unlikely that any live within driving distance of your business. On the odd chance that one or two do, how many sales will you make? Enough to sustain your business? There is a point where specialization can go too far. While it is great to launch a niche business idea, you do not want to narrow your focus so much that you exclude yourself from potential sales.

Where Is Your Industry Headed?

If you are looking for small business ideas in a specific field or industry, you have to remember that nothing is set in stone. You have to consider what changes are on the horizon, and what might come down the road five, ten, or even twenty years from now. For instance, the mom and pop video rental stores, along with the big box chains, refused to embrace changes in technology and went under with the advent of digital streaming services on home and mobile platforms. While it is impossible to anticipate every single trend and emerging innovation, it helps to choose small ideas that have room for growth, and which can adapt – or be adapted – to changes in technology, consumer philosophies, and economic conditions. If we look at a business like Coca-Cola, the main product, Coke, has undergone a number of branding changes over the decades. One of its biggest marketing successes heralded a shift in the soft drink and fast food industry. It was no longer about “buy our product, it tastes good and refreshing.” Suddenly it was about having fun and doing things with family and friends. The product did not necessarily change, but the company adapted to embrace the change in customer attitudes. We see this in other products, when marketers emphasize qualities such as “eco-friendly” or “high in antioxidants” or “organic” or myriad other bullet points to reflect and play with consumer interests and awareness.

How Will You Finance Your Small Business Idea?

Financing a small business idea rarely involves small expenses. Whether you are opening an online store specializing in handmade goods, a small storefront in town, or your own event planning business, startup capital is essential – not only for launching the company but to sustain it until it starts turning a profit. Most emerging entrepreneurs turn to small business loans to cover the requirements of launching their small business ideas. Rarely, if ever, should you use your own savings or personal lines of credit to launch a business venture. Making a small business venture a reality is a big risk, even if it is something the public is clamoring to get. There is no reason to put your personal finances in jeopardy. Remember, owning a business is a big undertaking, and you need to retain your savings to cover personal expenses. One of the first rules of business financing is never to mix working capital with personal money. Work with a financial consultant when you are putting things together to launch your small business ideas. They will be able to walk you through the various options available so you can organize and affordable funding plan for your small business ideas.

Successful Small Business Ideas

If you are still mulling over the above concepts, we have compiled a list of some of the most successful small business ideas to help give you some guidance.