Did you know that in Australia 60% of small businesses fail within the first twelve months? For those looking to start a small business – or perhaps even work from home – this is a very discouraging statistic.
Does this mean your small business idea is doomed? Far away from here! There are steps you can take to significantly increase your chances of success. With a little time and serious research, you can get started right away. Let's start from the beginning...
Excellent small businesses
Of course, you have to have an idea first. In general, business opportunities can be divided into four groups
1. Offer an existing product/service to an existing market.
2. Introduction of an existing product/service into a new market.
3. Offer a new product/service in an existing market
4. Introduction of a new product/service in a new market.
At this point in the game, there are no limits to your imagination. Inspiration can come from anywhere: maybe you have a hobby that you'd like to turn into a full-time job; Maybe one day you come across an unpleasant service and decide to try to improve it yourself; or maybe you have a talent you would like to utilize.
Once you've found something you want to do, it's time to take a look at the market and see what's on offer.
Pass the exam
So you have a great idea and want to put it into action; Now it's time to test it. For this exercise, let's assume that you are passionate about healthy living and want to sell a range of lifestyle accessories that promote healthy living through a do-it-yourself approach.
Ask: Is there a market for products that promote a healthy lifestyle? What types of products are available? Who would you compete with and what do your competitors offer? Do you have the skills to run such small businesses and more importantly, what skills would they be? Where would your business development be located?
After answering these questions, you should have a pretty good idea of what your small businesses will look like.
You buy some products and decide to research more about the lifestyle product line of a company called Vitality 4 Life. Your life experience and work as a nutritionist have equipped you with the necessary skills. You think that you can work from home, which will give you more time for your family. The market exists, but it is possible to expand it. Now it's time to take a closer look
To be or not to be
It's time to move on to the practical aspects. You don't want to jump into something feet first and find out the hard way that the budget just doesn't work.
First, sit down and figure out if you need to hire staff, which means paying salaries.
If you rent space, you need to be able to pay the rent and your location needs to be suitable for your business and your target audience (which also means you need to think carefully about who that target audience serves). Is). You also need to calculate the expected demand for your product/service.
Ok... You have determined that there is enough demand for high-quality juicers, germination, water filters, and other high-quality accessories to try selling them as a home business opportunity. Now you need to make some marketing decisions.
Look at me! Look at me!
advertising can be expensive, so you'll want to make sure your advertising budget is being spent wisely. That means more market research, this time one-on-one. Profile your customer groups so you can target your marketing to the right groups of people.
Write a questionnaire (a short questionnaire; people lose patience if you talk too much) and walk around some of the local gyms (for our particular example). Create a combination of open-ended questions (What do you think about……)..?) and closed questions (Do you have a gym membership? Yes/No.); Sliding scales can also be helpful.
For our health supplies business, a good question might be 'How did you hear about this gym? Radio, television, newspaper, word of mouth, etc.'. A question like this would give you an indication of what types of media your target audience responds best to.
Choose a company name, print out some business cards, buy stocks, and get ready to trade!
Measure it, manage it!
One of my professors pointed out that you can't manage anything in business if you can't measure it.
You have to be able to plan and to do this you have to know (or be able to accurately predict) your total sales. The equation is simple: number of customers x average sales x frequency of visits per customer per year = total sales. Remember, check it regularly, measure your business and you will be able to manage it!
Keep an eye on your results and, most importantly, always pay attention to your cash flow - the cash you have in the bank. When planning your budget, consider billing periods (14 days, 30 days, etc.)
The market has a life of its own and no one can prepare for every eventuality. Think about your idea; Make sure there is a market for what you are offering. Research, research, research; Promote your business development effectively; Always know what's happening in your bank account, and don't forget about your cash flow!
It's not perfect, but following these few simple steps will give you a leg up on many new small businesses. If you've heard about great work-from-home opportunities or have your product or service on the market, you're off to a great start!
It's not perfect, but following these few simple steps will give you a leg up on many new small businesses. If you've heard about great work-from-home opportunities or have your product or service on the market, you're off to a great start!
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