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How To Know If Your Business Will Succeed?

When first contemplating a business idea, what is the best way to evaluate its feasibility? Will it be successful, and what do you need to do in order to make your business a success from the get go. I’m sure you’ve seen (or heard) of entrepreneurs who are successful at launching businesses that reek of feasibility. Are they simply lucky or simply brilliant?

Great business owners are both – luck and brilliant. As a potential small business owner, when you are evaluating what type of business to start, there are dozens of variables to consider, but to keep it simple here, let’s look at 3 basic steps to creating a business that will succeed:

1. Stick To What You Know

One of the biggest mistakes new entrepreneurs make is getting into a business that they have limited knowledge about. For example, I’ve heard many stories of an entrepreneur opening up an eatery (restaurant), only to fold up the business six months later, and be out thousands of dollars in debt.One proven fact is that entrepreneurs thrive in businesses when they are emotionally committed to their business. It’s the reason they don’t give up when there are challenges or bumps in the road. A lot of money can be made from one’s passion.

2. Crunch Numbers

You may not be a numbers guy, but crunching numbers before you start is essential. I’m certain that you wouldn’t purchase a new car without crunching the numbers, and knowing what you can afford.There’s no excuse to not do research on other businesses that are similar, and that have been around for years. Use their pricing as an example to establish your own pricing. Take their marketing ideas, and fine tune them for your business. You don’t need to re-invent the wheel, everything is already out there.

You should also figure out your fixed costs—such as rent or utilities like your cell phone—and variable expenses such as inventory and marketing costs.

3. Spread The Word

Spread the word anyway you can. Being a marketing person, I think its very important to market your small business effectively, but marketing does not have to cost a lot of money. Talk to people about your business by showing your passion for your business. Hand our business cards at will, and create an online presence. Identify your target market, determine how you will reach them, and test your marketing messages over and over until you nail down the one that gets them to respond and buy.

Final Thoughts

All of the above three are important, but knowing the type of business/industry you’re getting into is a very important key point. Far too many entrepreneurs pick the wrong industry to start their business, and therefore end up on the wrong side.

Readers, can you suggest any other important variables to consider when evaluating a businesses feasibility?

Eddie

Photo Credit – Artnoose

Got $200? Here Are 6 Businesses You Can Start Today!

If you think it takes money to make money, I have news for you: YOU DON’T NEED MONEY TO MAKE MONEY. Within the last three years, I have launched two businesses with less than $500 spent on start-up on each business.

My first venture was a commercial cleaning business which I started with $250 that was spent on some basic cleaning supplies, and business cards. Next came my personal finance blog a year later, which was a bit of a fluke start-up (I’ll admit), and I only spent $180 on a website, hosting, and domain registration.

Within three months, I got my invested money back, and since have made thousands of dollars more than I initially invested in either business.

There are plenty of small business out there that can be started for less than $1,000. And a lot of them don’t need gobs of green to launch their businesses.Today, I want to share with you 6 businesses that you can start for under $200.

Professional Consultant

This is a service industry so start-up costs can be very low. If you’re an expert at something, others will pay you to listen to your expertise by offering other businesses or people at home advice on how to approach, and do something.  More common and successful consulting businesses are for financial, computer, advertising, and tax consulting.

The beautiful part of being a consultant is that you carry no inventory, and if you already have a computer, then all you need is to give your small business a presence online, and some business cards to hand out to prospects.

Start-Up Costs:

$100 – Web domain and web hosting package

$100 – Business cards, and few brochures

Computer Repair Business

Technology is ever changing, and if you have a bit of a computer geek in you, then chances are that you keep up with technology to some degree. Let’s face it, majority of the people don’t care for technology to keep up with it, and instead just need technology to perform a task that will earn them money. Most business owners don’t care to know how powerful their computer might be, and instead just need it to operate everyday without any downtime.

Computer repair is a hot industry, because almost every household in North America owns a computer, and nobody knows how to fix it!  The average computer repairman can charge anywhere from $40 to $100 an hour depending on the problem.  Like consulting, running a computer repair business does not mean you need to carry inventory, and instead you’ll buy per usage or need.

Star-Up Costs:

FREE- Used of your existing laptop or desktop computer

$50 – Business card

$100 – Website & domain registration

$50 – Basic computer repair kit (screwdrivers, pliers etc.)

Personal Tutor

If you’re really good at Math, Sciences or English, then you may want to pass on your knowledge to others in need. Thousands of middle school and high school students in your community struggle with math and science courses every year, and parents are willing to pay BIG money to see their kids do well in school.  You can set your own hours, and sometimes you can get your students to come to you!

Start-Up Costs:

$100 – Website & hosting

$50 – Business cards

eBay Consignor

If you enjoy buying and selling items online, then becoming an eBay consignor may be your calling. You already know your way around online, and can tell a good deal from a bad one. So, why not sell other people’s stuff, and earn a commission from the sale. You can set the commission percentage to charge, offer to pickup the item(s), take pictures, list the item(s) online, and do the shipping.

The start-up is dirt cheap because you already own a computer, a digital camera, and now you just have to get your name out.

Start-Up Costs:

FREE – Use of your home desktop computer or laptop

FREE – Your digital camera

$50 – Business Cards

$100 – Website & domain registration

$50 – Advertising materials

Personal Trainer

If you are fit, enjoy spending time at the gym, eat healthy, and generally have interest in helping others stay fit, and lose weight- Why not help others, do what you already love, and get paid for it?

Canadian’s are becoming more overweight due to busy schedules, lack of exercise, improper eating habits, and poor sleeping habits.

If you are an expert at getting in shape and staying in shape, then you can make big money whipping people into shape.  A personal trainer can charge an expensive hourly fee, and others who’ve tried to do it them selves and failed will pay you to keep them inline.

Start-Up Costs:

FREE – Use of your home computer or laptop

FREE – Use of your personal cell phone

$50 – Business Cards

$100 – Website & hosting

$100 – Basic gym equipment such as kettle bells, jump rope etc..

Child Care

If you’re a stay at home mom (or dad), why not offer child care needs for other parents on your neighborhood. In Canada you can legally supervise up to 4 children for every adult. You’ll also need your CPR course, and first-aid training certificate. 

You’ll also have to childproof your house, which might involve fencing off stairwells and buying locks for cabinets with poisonous cleaning products. Insurance, which specializes in home child-care insurance. Finally, you won’t need to buy toys, because your little one already has toys that can be shared.

Start-Up Costs:

$50 – CPR training course

$50 – First-Aid certificate

$100 -  Childproofing your home, and other necessities

Final Thoughts

I hope this post has given you some basic insight that you don’t need a lot of money to make money. There are hundreds of other small businesses you can start up for next to nothing. Take a moment to ponder what you’re good at, and get out there to offer others your service.

Readers, what are your thoughts on these six small businesses? Have you started a small business before? What are you waiting for?

Eddie

Photo Credit ( Weewatch )

Now Is The Time To Start Your Own Business

Anytime we’re exposed to a new territory, it can be intimidating. Its like being a kid all over again, and entering a playground that you’ve never been to before. This intimidation factor is not any different when starting your own business. The fear of failure, start up costs, finding business, and many other reasons that come to your mind.

Despite a long list of discouraging reasons for not starting a business, the list for starting a business is equally as long. The time for starting a business is always now, and the longer you prolong starting your business, the more you will wish that you started it earlier when you finally get going in your business.

I currently work a regular job, and have two of my own businesses that I run on the side. My days are full, but I still have plenty of time for my friends and family. As one who put off the idea of starting my own business for far too long, I thought it might be helpful to outline for you some of the best reasons that I see why now is a great time for starting your own business.

Income Without a Second Job

Lets put things into perspective – you will never be motivated working for someone else as you will be working for your self. There are many part-time jobs available, but it could be months before you finally land one. Valuable time will pass you by, which you can put towards starting and growing your business.

Starting your own business allows you to generate more income for yourself without having to send out resumes, fill out applications, and attend interviews. And the best part will be that you can set your own hours, proceed at your own pace, and never have to worry about having another boss.

Strong Job Security

When you’re the boss, the only person that can fire you is you yourself. Starting your own business now can also provide a safety net, or a hedge, against this struggling economy.Back in 2009, I took a 20% pay cut in order to keep my job. It was a scary moment, and one that has lead me into starting multiple businesses in order to bring in more money and security as well.

Today, with my two side businesses producing consistent incomes, this fear is gone from my mind. Sure, I‘d have some rough moments if I were to lost that job tomorrow, but it would be a lot worse had I not had these other sources of income.

Anything Is Possible

We all have a fear of something. Most people have a fear of heights, and fear of snakes. I’m afraid of both. Intimidation comes second to fear, especially when starting a business. You wonder, ‘How will I take on those in my industry who have been around for a lot longer than me?’. But guess what? Fear and intimidation can be overcome.

Everyone can overcome their fears and intimidation if faced head on. We all carry a unique talent that is unique to us. We all perform similar tasks, but everyone does it differently. That’s something that you should never forget. You are unique, and you don’t need to go invent new products or services. Instead find something you’re good at, do it, and ensure you do it differently and better than those who are already doing it. That’s what will make you stand out from the rest.

Final Thoughts

Anytime someone asks me why I’m a business owner, my answer is plan and simple – I enjoy seeing something develop from start to finish. I’m fortunate enough to see a business go from start up, and grow along the way into a profitable venture. I enjoy being part of the different stages of business ownership. I enjoy the touch, feel, emotions, and sometimes smell of business growth.

Readers, what’s holding you back from starting your own business?

Eddie

Photo Credit (jkunz, artnoose)