Anti-ideas or how to find a profitable business idea in a small town correctly
The most profitable business in the world: 3 determining factors + 3 profitable business areas in Russia + Top 7 ideas from around the world.
Every novice businessman at the start asks himself what is the most profitable business in the world?
We will try to answer it by identifying the areas of business that are considered the most promising.
What are the most profitable business criteria?
Before defining the main directions, it is necessary to identify the factors that indicate that the business idea will be profitable:
The speed of return on investment.
This fact plays a significant role.
A profitable business is a project, investments in which pay off in the shortest possible time.
The success of a business depends on many factors.
You cannot name ideas that will give a 100% guarantee of success.
But one can single out such goods or services, the demand for which is initially at a high level.
Today we propose to discuss the following topic: "The most profitable business ideas". We have collected and prepared a complete description of the business model and invite yours to express your opinion in the comments.
Small Business Ideas - Most Profitable Business Projects for Beginners with Minimal Investment
Doing what you love and making good profits is the cherished desire of a novice entrepreneur. Whether an enterprise will flourish depends on the correct choice of a niche in the market and strategy of movement, on an innovative approach in building a business model of the enterprise.
Home Business Ideas
For those who decided not to spend money on renting premises, you can look for ideas for a home business.
- In your own apartment you can search for customers and cargo carriers, plan, manage cargo flows. Similar to this type of activity is a taxi dispatcher; in order to get more income, it is possible to combine two occupations.
- It would be a good idea to provide advice from a lawyer, accountant, psychologist or tutoring. The provision of online services via Skype will help increase earnings. Advertising on the Internet using social networks will help expand the regional coverage of consumers and get customers not only from your city, but also outside of it.
- In times of crisis, people strive to learn how to make things on their own, so you can start organizing needlework courses: knitting and crocheting; embroidery; cutting and sewing; making souvenirs from leather, soft toys for children.
Small business ideas with minimal investment
The type of activity in the field of innovative technologies will be highly profitable, business can become effective with a non-standard approach to solving client problems. People with creative minds can create startups with minimal investment. Small business ideas useful to consider:
- An actual project in modern conditions is the provision of financial advice to the population - people are interested in the rational use of funds, the acquisition of cheap loans, profitable investments.
- A good option for small businesses can be to create their own website for the sale of goods or services. It will be profitable to develop this project to generate more income, but promotion and subsequent sale of the promoted portal can become a separate type of income. The advantage of this microbusiness is that it is available to young people and the older generation in any region of Russia, Moscow and a small town.
- Trading in financial markets will be profitable. Trading binary options requires deep knowledge in the field of trading, low costs, but it brings real income to experienced entrepreneurs and is a promising activity.
For people who are not ready to take risks and invest large sums of money, you need to pick up ideas for making money with a minimum of costs or start a small business with small volumes and increase investments as income increases. Garage owners can recommend an easy business for aspiring entrepreneurs.
Business ideas from scratch
- focus of businessmen on the formation of assets at the expense of working capital, which are faster and easier to implement, if the business does not receive recognition and success. These are also the expectations of a sudden change in laws, when it is not always possible to be sure what part of the profit an entrepreneur will be able to dispose of after receiving it. And difficult conditions for entry into manufacturing industries, and the lack of affordable cheap loans. Therefore, small business is in no hurry to acquire less liquid fixed assets (machinery, equipment, etc.);
- difficulties with sales. If the service is organized specifically "for the buyer", for example, in a new microdistrict in a "sleeping" area of the city an atelier opens or near a new business center - a cafe, the owners can always count on effective demand and a client audience. Engaged in production and development, you need to know the consumer in advance. You can participate in the procurement program, based on FZ-44 or FZ-223, but this requires serious knowledge and financial support, which is not always available at the initial stage of the case;
- difficulties with resources. Even if a sale is found, in order to organize a laboratory or a research center, qualified personnel, complex, often imported equipment, and consumables are needed. Often it is difficult not only to buy them, but also to find them.
The most profitable small businesses in Russia
Assessing the most profitable small business in Russia, the rating can be presented as follows (the share in the total number of recognized profitable activities, the profitability of which, regardless of the season, is 100 percent or more):
Others have not yet become widespread, since the client market has not been formed, not sufficiently prepared, and so far they can only develop in large metropolitan areas. Among them are private managers, financial consultants, chiropractors.
Some of them will become promising and in demand over time, others will not become widespread and will not become profitable types of small business in any other regions.
Profitable Manufacturing for Small Business
In detail, how much investment is required by production in the most profitable types of small business in Russia and what entrepreneurs can count on:
Small wholesale bases
Their main advantage is the convenience of location and wide sales. These organizations are necessary for both private buyers, and large networks, and counterparties - small entrepreneurs.
The main part of their costs is renting premises and equipment to maintain optimal temperature and humidity parameters. The start-up capital of such companies is about 300 thousand rubles, the profitability is at least 100%, the payback is less than a year.
Retail stationary and market trading
Construction and repair
Most often, work is seasonal, but on average per year, based on the seasonal yield, it is 110%. Works on minor repairs of premises, cars, installation of air conditioners, split systems, installation of plastic windows, balconies, wardrobes, built-in furniture, reconstruction of country and garden houses are in demand. The amount of payback is from six months, the minimum starting capital is 100,000 rubles.
In such settlements you can find shops, restaurants, recreation facilities, sports and recreation sections, taxis go there, and most often only the airport and universities are absent. However, each type of human activity gets its own characteristic features. Let's take a look at a business example.
The calculation of local merchants is simple and straightforward. All those who are rich will go to big cities for clothes and luxury goods. There, the choice is wide, and the prices are lower. Therefore, for their fellow countrymen, local merchants buy everything the simplest and cheapest. Fortunately for consumers, the modern market is saturated so that you can also choose something of high quality from cheap ones.
In almost every cafe you can find the Three Gudgeons or Tomato cafes, Magnit, Pyaterochka and similar discounters have become an indispensable attribute. They have already crowded out 80% of local merchants. Mainly only the brand shops of some households have survived. For example, if a local merchant owns a farm or poultry farm, then his brand store in the city will survive, and the rest simply cannot withstand the competition.
This niche, unpredictable during the crisis years, also turns out to be “crushed” for some large corporations. And they can afford to either, by reducing the volume of production by 2-3 times, somehow survive, or bankrupt entire subsidiaries. Try starting brick making from scratch or starting a candle factory. And the enterprise cannot be profitable. All attempts end with some kind of own production living for a couple of years, and then disappearing.
What to do?
Incomprehensible demand with understandable calculation
If the owners were guided by the trade of ordinary books, they would have gone bankrupt long ago. The crisis made its own adjustments, but before it there were several newspapers of their own in small towns. And the survivors were mostly those who worked on the free classified ads scheme. Citizens advertise for the sale of real estate and movable property, and businessmen advertise. The former pay nothing, while the latter finance the publication. There is no other content - just ads and advertisements.
We have already said a lot about the features, it's time to move on to specifics. Let's consider all this in more detail.
Whatever the business, there are different criteria for its assessment. For a person interested in doing it, the most important are the indicators of profitability, costs, profitability and profitability, which is a cumulative indicator.
Briefly about these parameters: profitability is a measure of how much a particular type of business can bring. This refers to the funds that come from customers after making a sale. Expenses are the part of them that goes to pay off debts to employees, to contractors-suppliers of materials and services, to the state for carrying out activities, obtaining permits, taxes, and so on. Profit is the difference between income and expenses - this is the part that goes to improve, modernize, develop the business; and payback is a coefficient showing how long the initial investment in the business will be returned - the funds needed to start.
Accordingly, if a business model is profitable, then after a certain time it will beat off the initial investment of the investor (most often it is the owner of the business), after which the latter will start earning additional money, increasing his capital.
The question of profitability and payback
Many entrepreneurs who want to start doing this or that business are interested in the question of how to find the most profitable business. This is obvious: the more profit a business model brings, the more profitable it is to do this business, and the more interested the investor will be in it. At the expense of the profit, the owner of the business will be able to earn more, increasing his fortune. True, profitability is not a single indicator that deserves attention.
Profitability is also important. It, as already noted above, determines how long the most profitable business (whatever it may be) will allow to return the investments made in it. And this figure is more important than the net profit indicator.
Let's take a simple example: at the state level, the most profitable business is undoubtedly the carbon trade - oil and gas. This raw material is bought by other countries in huge volumes, which makes it possible to receive billions of dollars in profits. On the other hand, investments in this business are colossal. In order to start producing oil, you will need billions of dollars in investment. This proves that the most profitable business is not always the most profitable.
And not everyone can do what brings big profit. Another example is casinos and gambling. The organization of a gambling business is clearly the most profitable business with minimal investment. However, it is not so easy to get admission to this market, given the system of licenses and permits that the state must issue.
Found or buy?
For those looking for the most profitable small business, there are three ways to find one. The first is to start your own business. It presupposes a desire to do something and an understanding of how the business can be profitable. You don't have to look far for an example: you understand that cotton candy trade can be very profitable if you set up a tent on a weekend near the zoo. Your task is to organize this business: purchase equipment, obtain permits, purchase raw materials. Obviously, there shouldn't be any problems with the apparatus for creating cotton wool and sugar - all this costs a penny compared to the final cost of the product. However, permission to trade in food products, as well as the ability to establish your own outlet in a convenient location for you, are very expensive, especially given the corruption in the authorities dealing with such issues. These difficulties do not allow us to characterize the trade in such products (cotton wool, coffee, snacks, etc.) as the most profitable business in Russia. You need to spend a lot of money to get permits and formal documents.