Some people strive to become entrepreneurs. Why is it so? First of all, because of the fact that entrepreneurship is a lucrative activity, regardless of the company’s size. Small businesses can be profitable as well! Entrepreneurship brings freedom and money, but it also requires time, effort, creativity, and dedication. We’d like to share several tips on how to start a profitable small business for those who are planning to embark on this great endeavor.
Most Profitable Small Businesses
Before you start, you need to know where and how to earn money. We have selected five of the most profitable small businesses this year:
- mobile services (auto repair, food truck, car wash)
- child-oriented (newborn care services, post-pregnancy services, entertainment, mobile apps)
- Uber-model (attire, accessories, equipment for home improvement)
- online education (academics, languages, marketing, wellness)
- freelance services (accounting, consulting, design)
Meaning, that if you decide to launch a start-up in one of these areas, you will have more chances to succeed. Mobile businesses are consumer-oriented: people like when they can make a purchase in one click. The majority of grownup people have children, who need education and care regardless of age. This is a field of eternal demand. Uber as a “sharing economy” offering is a very good business idea. The strategy of Uber can be applied to companies operating in other industries. Finally, freelance activities are on the rise, and you can take advantage by offering your services to the B2B sector.
Create a Business Idea
First, you need to identify what is your passion. Passion is important as it will push you to success through all challenges on your way. Secondly, you will need to turn your idea into a business. But how to do it? For example, you have a good taste, you know what is fashionable this season and how to dress stylishly. It is a good talent, but it will not bring you money until you create a business of it. If you set a website and start to sell garments – this is a small business. If you have an opportunity to buy cheap garments in China, and then sell them in Europe – this will become a successful and profitable business.
Make a Plan
Experienced companies’ owners know that preparation is 50% of success. So, make a good plan with as many details as possible. Identify your target customers, the level of service your company provides, patterns to provide better services, the amount of investment needed, type of products/services to offer, strategy to reach target customers, etc. You can find a great number of tutorials on creating business models and business planning online. The following books: The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It by Michael E. Gerber, The Startup Playbook: Secrets of the Fastest-Growing Startups from Their Founding Entrepreneurs by David Kidder, The Tipping Point: How Little Things Can Make a Big Difference by Malcolm Gladwell and the audiobook by Patrick King Inspire! The Art of Persuasive Leadership: How to Influence, Establish Trust, and Gain Respect are good to start with.
As it was outlined in pre written essays for sale now, profitability and success of your business also depend on how experienced and skilled you’re. You will have to gain accounting skills, outsource or hire a team of people, who are aware of bookkeeping, maintain discipline at workplace, plan, allocate resource efficiently, understand markets and marketing, and obtain excellent presentation skills. The most important thing to understand is that your team is a group of people who complement each other and aim to reach shared goals.
From Idea to Start-up
Moving from a business idea to creating a new company will take time and effort. You will need to create and position your own brand, raise funds, find the right people, and prepare for launch. People play a crucial role in success or failure of any company. Many well-known brands in the world stake in their people as people become the source of core competency as all other resources are similar.
You will also need to choose a legal structure matching the operations of your company, build and test your products/services, set up financial accounts, and many more. You will probably need to read a good book on entrepreneurship and leadership if you don’t have enough experience in the business.