Small business where to start
Hello everyone! Today I intend to continue a series of conversations of interest to private entrepreneurs. We will look at where to start a small business and how to cut costs, because most startups close early because of the lack of funds from the owner. To help your case avoid this fate, find out what to look for.
What is small business and entrepreneurship in general
Running a small business implies that you are self-employed with small production volumes. Under Russian law, this area includes enterprises with less than 100 employees and an annual income or book value of less than RUB 400 million. If you employ 16 or fewer people, and your income does not reach 60 million rubles, your activity belongs to the sphere of microbusiness.
Such entrepreneurship is profitable due to the following nuances:
- special tax regimes;
- simplified accounting;
- easy reporting procedure.
But can everyone start such an activity? Consider if you have the necessary qualities that an entrepreneur requires. Running a small business means you can tackle complex challenges:
- you will be able to take the initiative in organizing production and provision of services;
- you will be able to bring all factors together and achieve results;
- you will be able to analyze situations, develop strategic and tactical goals, be responsible for success in achieving them;
- take a balanced risk for the sake of business development.
Initiative people who have a quick reaction to changes in the market situation should start a business. Having an education, while desirable, will not be the deciding factor. Professional economists are able to analyze and determine what information is needed to succeed. But many examples prove that a person without initial education implemented plans, and the holders of a diploma suffered a crash. You will have time to study theory by combining it with practice, because the talent of an entrepreneur and the desire to develop is more important.
The Russian sphere of small business is also different in its specificity: it is influenced by the corruption of officials and the lack of ethics in the conduct of business. The unstable economic situation leads to the fact that businessmen strive for momentary profit, fearing to make long-term plans. As a result, honesty and reliability remain rare qualities. And yet, if you want to not only start your own business, but also succeed for years, work on your reputation. A credit of trust is no less necessary than a bank!
Pros and cons of small business: what to be ready for
Before starting a business and spending money on investments, assess the situation. Newbies are attracted by a number of nuances:
How to start a small business - the first steps
What is the best way to start a small business
As a rule, people think so, who, in fact, never knew how much money is needed to start their own business. The presented article will help you deal with this issue and make sure that you do not need sums of money with six zeros to open a company, but 10-50 thousand rubles is quite enough (for some areas of activity).
You will learn how to open a small business and where to start this process so that financial costs are minimal and you use your time rationally at every stage of organizing your own business. This information is of interest not only for beginner business entities, but also for students of economic universities, people engaged in self-education, etc. If you live in a small town, you should definitely familiarize yourself with this material - “21 business ideas for a small town ".
Small businesses can be carried out by legal entities and individuals, as a rule, LLCs and individual entrepreneurs, which are not part of large enterprises, international companies, large corporations or monopolies. Basically, such entrepreneurial activity is carried out by a small group of persons under the leadership of a business owner or manager (director, boss, etc.), who is not related to the creation of a company and works on a general basis.
The main distinguishing features of small businesses are:
The number of hired employees may not exceed 100 people.
The maximum amount of annual revenue is 400 million rubles.
A business organizer, as a rule, takes part in the activities of the firm, carrying out general management and controlling the work of the enterprise.
It is very difficult for small businesses to get a bank loan, so entrepreneurs have to cut costs on all items of the firm's budget.
There are restrictions for small businesses in some areas of activity, especially for individual entrepreneurs.
When studying the question of how to open your own business and where to start, you need to consider the pros and cons of small firms. Readers with a degree in economics know that small business is the engine of any country's economy. In large enterprises, in the near future, there will be a constant reduction of employees (the rapid development of modern technologies contributes to a decrease in labor demand), which means that new jobs will be created only in small firms. Small businesses are very “flexible”, able to quickly respond to changes in some external factors.
For example, forecasters said in July that the winter would be cold and snowy. An additional line for the production of winter footwear was launched at a large factory, but in November everything was understood and forecasters confirmed that instead of frost, it was necessary to prepare for slush, rains and air temperatures above zero degrees. Within a week, the small firm changed its shoe manufacturing priorities, focusing on rainy weather. In a large factory, it takes several months to complete a similar operation, which means that this company will not make decent money from its warm shoes. The situation is similar with making important decisions.
In each case, a small home-based business can delight you with its prospects and optimal financial guarantees, thanks to which there is an opportunity to lay a decent foundation for the development of entrepreneurial activity. What options exist for creating a small business and what problems may arise, read below.
Small Home Based Business on the Internet
- Copywriting and rewriting - writing texts.
- Website creation.
- Software development.
- Promotion of goods through social networks.
In each case, it is advisable to start planning your business with an understanding of the best option for activities: the Internet or reality. At the same time, in each case, you can count on decent results, thanks to which it will be possible to lay a decent foundation for further work.
Small Home Business Ideas
Resale of goods from China
If you want to understand where to start your business, you can give preference to the resale of Chinese goods. This entrepreneurial idea turns out to be one of the most accessible and promising. Products from this country can please with affordable prices and a high level of popularity. At the same time, the level of popularity of manufactured goods is constantly growing.
If you want to plan the resale of goods from China, it is advisable to purchase a computer and establish a full-fledged, unlimited Internet access.
What Chinese goods can be sold on the Internet:
- Automotive devices: video recorders, navigators and other types of equipment.
- Various accessories.
- Mobile phones.
- Clothes, shoes.
How to start a business from scratch
Types of business
- - Computer
- - Internet
Start by looking for workers. It doesn't matter in what area you decide - it will be much easier for you with the help of employees. They can perform a variety of duties - from executors to search engines. The main thing is that they must be diligent and agree to work for a percentage upon the transaction.
Create a website and social networking group dedicated to your business. It is necessary to link to the site, and the site to the group - despite the growing functionality, in the group it is impossible to have all the site's features, and an open discussion in the group will be the most trusted by clients due to the openness of information.
Be as discreet and courteous as possible in open discussions, do not allow open confrontation.
Many people at least once in their life think about opening their own business. But according to statistics, up to 90% of business projects will fail. It often seems to a novice entrepreneur that the business he wants to do will be interesting and in demand, but for one reason or another this turns out to be not the case. How not to make mistakes and open just such a business that will bring you profit?
Think about what is missing in your city or locality. If you live in, it will not be difficult, because you probably do not have very many shops, cafes and other establishments in demand by most establishments. You don't have to be afraid of competitors, since you have a chance to become the first owner of a certain type of business in the city.
When choosing an idea, be guided not so much by your own interests as by the interests of the average resident of a city or district. Otherwise, it turns out that you have opened a business "for yourself." Such a business will be very difficult (and expensive) to promote. Make a list of goods and services that you think many people need.
Think about what from the above list you could open, focusing on your funds, as well as what you are most interested in. If you have little or no money of your own, consider whether you are capable of borrowing money or attracting an investor. Those who can only focus on themselves and their savings will have to narrow their choice.
If you are not sure that you can quickly promote your business, buying a well-known establishment is almost a win-win option. It is that you will acquire the ability to work under the famous. Accordingly, it will not need promotion, and clients will appear quickly. But buying a franchise usually requires a lot of investment (from half a million rubles), in addition, you will be required to deduct a certain amount from the profit to the franchisor every month.