Starting a Small Business Part I
You’re standing at the check-out line of your local supermarket, when a look at the long line makes you dizzy. All you can think is, “This is going to take forever. I need a break!”
No. You’re not waiting in line. You’re behind the cash register. Even a simple four hour shift tires you out and you only wish you could do what you want to do and work on your own schedule. The supermarket gig was not as glamorous as you thought it would be.
Well, you can virtually do what you want and work when you want, if you have your own business. An entrepreneur creates his own hours and does what he wants to do. It may just be your dream job!
Don’t think this means that all you’ll have to do is hire some people, tell them what to do, sit back, and enjoy incredible profits, of course not. Don’t let the description fool you, a small business is hard work.
When you start a business you need more than an idea, you also need capital, background knowledge of what you are doing, and a lot of hard work. People start and fail at small businesses all the time. They often fail because they are unprepared, not dedicated, they don’t like what they are doing, or there just isn’t a need for what they’re offering.
Here is where you can get started and find out how to go about starting a small business:
What should I do?
The First place to start is with an idea. The idea is probably the most important part of a business. Yes, I know I said there is more to a business than the idea, but it is still very important. It can make or break a business. Think about some of your favorite products and services.
Myspace.com succeeded because of its originality and appeal to a large group of people. No one had ever really thought about an online community in such a way. It offered something hard to find anywhere else.
Another good example is a hair salon. You probably see hair salons all over the place. I think there are maybe 5 in my town alone and while that may be too many, I doubt any of them are doing that bad because they’ve all been here for a while. This is an example of something that is always in demand. It’s not a unique idea at all, but people are always going to need their hair cut.
A bad example would be a store for British collectibles on a street corner in the middle of a quiet suburban town. Someone might have thought, “Hey! There are absolutely no British collectible shops here at all, just a couple of hair dressers, a dry cleaner, and a car wash. It can’t fail!” On the contrary, it most likely will. Some things may seem like it would work great because there’s nothing like it, like myspace, but it also might mean nobody wants it.
There are many important aspects that you need to consider when thinking of an idea. The different ideas mentioned in these examples are discussed in further detail below:
1. Are there all ready too many lawnmowers on your street? Be unique!
Try to be creative and original in your ideas. If you see someone selling lemonade on their busy street and making a bundle, don’t set up a stand two houses down. If there is already a lot of competition on the market, it will be hard to break in.
Maybe you could try selling hot dogs and soda a few blocks away at the park? Potential customers might be famished as well as dehydrated and will stop by you after a couple of tough hours at the tennis courts. Find a need a try to fill it.
2. You’re sister made a fortune babysitting when she was in high school. Why not do the same?
Some things will never go away. People will always need there hair cut, babies watched, lawns mowed, snow shoveled, and so on. If you’ve come along something that seems too obvious and everyone’s doing it, it’s probably a good idea. If everyone’s doing it and have been doing it for years and years, they must be making money.
While this is true, the market for one of these ‘obvious’ ideas may still be flooded. You have to find this out before you start. If there are 10 snow shovelers in your neighborhood and only 15 houses, you’re still not going to have much business. You either need to become good competition with competitive prices and services, or look elsewhere.
3. You can be too unique.
Don’t try selling pony-bead necklaces door to door unless you’re expecting to get sympathy sales. People aren’t going to pay you to hose down their driveway. Make sure your business is not absurd.
Think about where you live and where there is the biggest need. Do you live in a predominantly hot and dry climate? Maybe you could sell beverages and snacks at parks and shopping areas? Are all your neighbors’ snow bunnies that live on the
Is this going to get you in trouble? You need to be careful and not think of something that is going to step on someone else’s toes or that could get you arrested. Don’t set up a lemonade stand in front of a deli. Either they will be angry, or you’ll get no business. You lose both ways.
Is this something you can keep up? When you start a business and build a list of loyal customers, you don’t want to let them down by just suddenly shutting down if they depend on you. If you have a list of families that are counting on you to baby-sit for them every week and you’re just too tired, it’s not right to just quit. Make sure you can handle it.
Go to Starting a Business Part II: Setting Up
