Anonymous
Anonymous asked in Business & FinanceSmall Business · 1 decade ago

What business can we start, while not spending a bundle?

I want to start a small business, but need information, on who i can talk to. What i need to know. Where i can start, and what i can base it on.

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  • 1 decade ago
    Favorite Answer

    A business can be summed up as follows:

    Market (who are you selling to or in other words, who wants to buy what you want to sell - irrespective of this being a product or a service - where and for how much?)

    +

    Product / Service (what is your personal expertise. who do you have on your team that can do what you cannot or do not want to do?)

    +

    Revenue Model (financials i.e. how much does it cost you to run the business (your neighborhood bar in this case) and deliver the value you intend to and how much can you charge, to how many people you can serve ==> throw this is in a simple equation on a spreadsheet). This would also give you an idea as to how much start capital you need till you start seeing breakeven...that's where you credit score kicks in and you may want to take a loan...if you have family and friends or investors, go to them...they know you better than what your credit score reflects...see if they can be convinced that their investment in your efforts are not risky and that you can guarantee a certain rate of interest payable in future.

    Based on the above understanding, you can now can make a serious decision on whether:

    1) you want to be IN THIS "new" business or not;

    2) it makes financial sense to be in the "new" business;

    3) it can "breakeven" and make money within a short/relevant period of time before you grow frustrated

    4) if this is a full time business opportunity or a sideshow that generates decent "extra" money.

    5) Why you are doing this - i.e. starting a "new" business - makes sense or does that answer to the question "why?" need a relook? is this because you have expertise in this area, or you have money to invest etc...

    That was the first stage of decision making and the most important part. Once you seriously know "Why?" you are in this, rest all is administrative and easy.

    Get a relationship with a CPA to help you get a good handle on your costs then you can go and mark up the service fees for your margin.

    Starting a business without any prior business or domain knowledge is not a bad thing by itself, just that the chances of failure are many.

    What is your financial health and budget for renting or buying an office? Is this going to be a -strategically speaking - real estate play or service business play? What term are you looking to sign up the lease (if renting) with the landlord? Be extra careful on the lease front, business people from Sam Walton (kicked out of his first succesful variety store by landlord who did not renew the contract) to regular johnnys who have had bad locations with long leases slammed on them...This is the key expense where you would need a long term investor partner to be on your team after payroll & inventory.

    Buy or lease equipment of such stuff for your business would be based on your specific financial modeling and short/long term plans.

    Lease if:

    Low on cash 2: write the lease of as expense each month 3: you have a short term lease with your landlord

    Buy if:

    You have cash on hand 2: you want to use depreciation on capital investment method for accounting and if this is a large amount 3; long term lease on hand through the break even time required and also if you are confident that your location is the perfect one.

    The following points are useful for you to note:

    Next, go to the website of your local state government, if you are in the USA, else to a legal counsel or account (CPA) to help with the basic decision making and advise on:

    1. Formation of the company: name, capital structure, accounting formats/software, financial year etc.

    2. Deciding on sole proprietor, partnership, S Corp, LLC or C Corp

    3. Financial health required i.e. cash flow analysis, financial projections, financing needs and loans etc.

    Then comes the execution part:

    1. Marketing ==> advertising ==> budget and reaching out to your market/audience constantly. This is where you get a website. I know a company www.bizdevsystems.com click on eBusiness that provides great deals for new businesses / start ups with package deals including custom websites onwards, business phone and DSL Internet , credit/debit card and check processing services.

    2. Sales ==> Getting big projects ==>cold calling, meetings, deal closures

    3. Business Development ==> partnerships, networking, swapping warm leads with other non-competing allies outside of your business / market area for a referral fee / affiliate commission.

    4. eCommerce and eBusiness: an online angle to your business, to generate revenues online as well as take your offline business online in some way or the other. This is another level of utilising the web through marketing.

    Last comes in HR / Production / Operations: Looks like you are experts in this area already. Just keep these in mind:

    1. to grow your company, you HAVE to hire new people, trust them (even if you are burnt multiple times...keep hiring), train them and try to get out of "you" out of the business and let it run on a systematic daily reports oriented effort...i.e most companies that are run by entrepreneurs / founders die when the founder leaves because the founder(s) was/were the company...therefore, on the operations front, put in an IT system in tandem with a Culture in place that can run the show on its own without your interference in the business decision making, revenue generation, order fulfilment and customer support. Also it is absolutely must that you get a T1 or higher internet with VoIP service for communications.

    All in all, always remember that the seed you are planting already knows how large it can get, the one who plants may not be so aware of which seed he/she is planting...you have to design this business model /seed before you launch.

    Good luck with your venture...nothing ventured, nothing gained...go for it...the learning would be fun after its been learnt...hindsight is 20/20...I can keep advising till the cows come home...having been there done that...for you, just do it :)

    Sanjay Saggere

    404-425-3021

    sanjay@bizdevsystems.com

    www.bizdevsystems.com click on eBusiness

    Source(s):

    1. For eBusiness eSsentials go to www.bizdevsystems.com click on eBusiness or email sales@bizdevsytems.com

    2. For eCommerce / offline retail merchant accounts go to www.wynpay.com or email sales@wynpay.com

    3. For phone & Internet VoIP services www.ebolo.com

    Source(s): Experience.
  • Zak
    Lv 5
    1 decade ago

    Find a nearby university with a Small Business Development Center.(SBDC) Call the university's business school. I used to work at one. FREE counseling services. Our center was well developed and had great services.

    Advice - Do not start a business based solely on how much it costed. If you have a hobby that you enjoy, explore ways to make money with that. Then you will enjoy what you do.

    ALWAYS write a business plan before opening up the business regardless of how painful it may be. The SBDCs will help with that and try to answer any question you have for free.

  • 1 decade ago

    There are a multitude of options when considering a small business start-up. One approach, if you're particularly concerned about start-up costs, is to become a franchisee (i.e., to open a Subways or a Mrs. Fields or some such). The upside of being a franchisee is that the franchisor will help you with initial operations -- helping with, for example, location selection, advertising materials, etc. They will work with you to explain all of the typical costs involved. They also will often provide you with support (e.g., advice, experienced managers) at the outset. Of course, there is a downside to franchising as well. For example, you have to adhere to their rules -- and some find this to be constraining.

    If you want to learn more about starting up a business, there are a number of options. One good option is to see if there's a Small Business Development Corporation in your area. Often, they have trained professionals who will work with aspiring entrepreneurs (free of charge!). Often, they also provide free training / education for people who are interested. In New York City, for example, the SBDC offers free short courses (2-4 sessions) on business planning, family business, strategic planning, etc. To find out if this resource is available near you, just do a Google search -- or, alternatively, go to the Small Business Administration's website (www.sba.gov). There are other organizations that also provide help. For example, Score! is a group that provides experienced entrepreneurs to mentor newbies.

    Good luck!

  • 1 decade ago

    Look up on government programs that help start-up businesses. or check a non government organization in your area that helps small businesses. You can also ask a local bank about how you can get a loan and start a business. Finally, there are a lot of websites around that cater to budding entrepreneurs like you.

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  • Anonymous
    1 decade ago

    This is for people that are serious and who don’t want to be misled as we have tried many things and have found a company that has been around for 21 Years and pays you to advertise for them. My wife and I just started and are doing well. It is not an MLM company and no selling, no deliveries or stocking product. My wife’s aunt has been working with this Company (Melaleuca) for a little over 3 years and home schools 3 kids and makes $9,000 a month. It is a 500 Inc company and the CEO is on the U.S. Chamber of commerce board. I can arrange a web cast with my wife’s aunt for you and you can decide by yourself and WE WILL help you be successful. It is an honest Win Win.

    If you want to see a web cast (presentation) from your home let me know and I will arrange it as that truly is the way to see all about Melaleuca. Have you heard of it. We have just gotten started with my wife's aunts help as it is a team effort and it is fun. Just a quick F.Y.I. 8 out of 10 people that see the web cast join the company and 95% of the people that join re-order product each and every month. Let me know when you are ready and we will set up the web cast.

    e-mail: cleanandsafehome@yahoo.com

    Thanks,

    Rich & Teresa

  • 1 decade ago

    I'm not sure which type of business you're interested in starting. But I do know that the Vitamin Business is booming!

    I signed up for this. It is super cheap and easy and you can make $1000 checks!! Every time you get 20 new customers to try one of 5 different vitamins they will pay you $1000.

    The way you do this is for a one time setup fee of $35 you get your own website that you don’t have to make, they make it for you. You don’t have to help or even speak to customers. The website will be under your name and that’s how we know that you get credit for a sale.

    It’s very simple; you will get paid $1000 every time you get 20 new clients to try one of the 5 amazing vitamins--- even if they return it. And even better, you can get other people signed up through your website as Independent advertisers and every time they get 20 new clients, you get paid $500. So you can make an army of people that got setup through you, making you $500 checks. And if you get 100 new clients in any month you’ll get your $5000 plus a $5000 bonus check!

    And there is no time limit to get your 20 new clients, so you can take 6 months to get your 20 new clients and still get paid the same $1000, or if you were to get 60 new clients in a week, you would get paid $3000 that week! You can advertise on the internet, pass out pre-made flyers and business cards or by word of mouth. We will give you all the marketing tools and tips to drive thousands of people to your website.

    http://www.top5vitamins.com/

  • Eva
    Lv 4
    5 years ago

    As another answerer said, there are sites that allow you to upload your designs and sell through their sites. I use zazzle. I think another is cafePress. You can see a gallery that I set up on zazzle at the link below. If you setup as an associate, you can earn as much as 17% on your stuff. I think it is a good way to get started and at least test-market your designs before investing a lot of money. If you already have the designs - zazzle is very easy. Plus, I have purchased stuff from them and the quality is top notch.

  • 1 decade ago

    Preeti: I find it so encouraging that you are asking some of the right questions. If you are serious about doing due diligence please check out my website at cyf.makemoreathome.com. My wife and I have worked from home for 6 years now with a reputable company and loved it. Ask for more info, and I will give you more of the questions you should be asking, which will help you in your search. Best of luck to you!! Neil M.

  • 1 decade ago

    Start with your local chamber of commerce.

    Whatever you do, DO NOT... I repeat, DO NOT go out and get a copy of the book "How to be a Ho" by that character that Eddie Murphy played...this is NOT a good route.

    Plus, you don't want SMALL business anyway! ;-)

    J/K -- check out your local chamber - they have all sorts of info and even free classes to help get you started.

    Good luck!

  • 1 decade ago

    Well you can have your own business with Arbonne International. The fee is 39$ Can. or $29 U.S.

    I have my own business with Arbonne and it's great. It can be very lucrative, but it depends on the efforts you put in.

    Check it out.

    If you need to speak with someone, you can click on locate a consultant and someone will get in touch with you

  • 1 decade ago

    i suggest you really think hard about this before jumping into it. its been proved that a high percentage of small business fumble within a year of inception. i suggest you research what will get you the most return with the least risk involved. also evaluate your primary consumers and make sure the business is something that your consumers will need repeatedly thereby ensuring survivability of said business.

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