Having the freedom to do what you want and run to own your business is exciting and risky at the same time. Unfortunately many people worry about starting a new small business because the failure rate looks so high. While the statistics might look bad on the surface it's important to look at why the numbers do not look so good.
Keep in mind that many small business start ups are begin by people who have quit full time jobs and jumped into the deep end without creating a safety net for themselves. All it takes is one slow month financially and those people are forced to find work in a menial day job again, abandoning their dreams of owning a profitable small business. Be prepared to have some money saved up to put you through for a couple of slow months. Be aware that the money will not start rolling in right away as you will have to make adjustments and changes so that your income will be steadier.
Do not be like other small business owners that spend large amounts of money buying their businesses because this means paying back a large debt. Once again, they have not taken the time to create a safety net for themselves.
And before you even think of starting a small business, check out the zoning laws in your town or county if you intend to work out of your home at first. Some towns do not allow working at home or they may ask you to fill out an application. Some states are not as strict but other states such as California have many regulations that prove to be troublesome.
Imagine if you could create your very own business for very low cost at the same time as creating a financial safety net that allows you to avoid having big debts and avoid worrying about cash flow all the time. In reality, there are some great ways to begin a very low-cost small business and create a financial safety net for yourself at the same time. All it takes is a bit of planning, some foresight and some patience.
Low Cost Small Business Ideas
Some good examples of low cost business start ups could be to begin a cleaning business, pet sitting, dog walking or grooming service. You could also begin a book-keeping service or a party planning business. Your low-cost start up ideas do not have to be limited to the service industry though. You could very easily create a highly profitable ecommerce business and run your part-time enterprise entirely online. Selling on eBay is what many people do to supplement their income. Start small, then as you get more confidence and small successes, you will find that you will start making more money. These are just a few options and they are ideal for anyone wanting to begin a small business on a very low budget in their spare time.
Pitfalls of A Small Business
While many people have the dream of being their own boss and having the freedom to set their own working hours, the reality of owning a small business is a little different. If you have not taken the time to develop a bit of a business plan to give you an idea of the tasks you need to tackle at certain times of each year and you have not built a safety net for your financial needs, then you may find your small business becomes a drain on your energy and your spare time.
After all – you're not just the boss in your business. You're the book-keeper, the sales person, the receptionist, the cleaner and the laborer as well! With so many tasks to take care of, having a clearly thought-out plan will save you a lot of headers later. If you can have a reliable family member help you with some of the tasks it will be so much easier for you to get things done.
In order to avoid some of the pitfalls of starting your own business you need to research in your niche to see what others are doing. Are they successful or are they having business problems? Check into various online forums in your niche so you see what's going on in your chosen business. You might get some valuable tips and be able to network with others like you.
Building Your Small Business Safety Net
Before you begin any business, you should consider giving your new venture a 'test drive' before you actually quit your day job. This means you should take the time to see how the business fares by running it only on a part-time basis. Put away a few hours on a weekend and use this to 'test drive' your business. The reason behind this part-time approach is to test customer reaction to your new business and to see whether you actually enjoy your new role as business owner or not.
As your customer base grows and your income grows you can slowly phase out your full time day job completely. Do not do it right away as you may want to wait until at least a year of steady income from your small business. Start cautiously and learn from your mistakes. There will be successes, but there will be things that you may need to adjust so that your business runs smoothly. If you want to make your business a success, be determined and motivated as well as willing to adjust to change.