Small business ideas are those which can be started with low investment and on a limited scale. These business ideas are good for those who lack some source of employment and have the ability to avail of personal loans.
One can make a good amount of money through business but not through employment or a job. So those who are in employment and are not satisfied with their income can think of going into some business.
Small businesses are available at three levels, i.e., retail level, wholesale, and also at manufacturing levels. It is up to the person to decide on which type he fits and can do good business.
So for those who are willing to earn more money or have some sort of income, a small business is the best option.
There are many best small business ideas, but all of them have heavy competition in the market, but still, one can succeed with hard work and smart tactics.
♦ Which requires low investment capital to start up.
♦ long term income source.
♦ the one which is dependent on physical products and not virtual things (online types)
♦ lasts long and is easier to make money.
♦ Products with demand in all seasons.
♦ Have chances of expansion.
♦ low maintenance, less labor requirement, especially non-technical.
♦ Sufficient demand in the market.
♦ Suitable to start in any region or market.
Small businesses can grow big if they can build a brand name and win the trust of customers. So let us see small business ideas
Small business ideas-3 Types
1. Direct sales/retail business
2. Middle man/ dealer business
3. Manufacture & Production
4. Online sales
Direct sales/retail Small business ideas
Direct sales or retail shop is the best option for anyone to start a business. These businesses directly sell products or services to customers. These are comparatively low investments and less risky options. They are of many categories like
♠ General stores
♠ Medical stores
♠ Grocery store
♠ Jewelry store
♠ Ready-made garments
♠ Mobile & electronic gadgets
♠ Iron marts
♠ Furniture store
♠ Building material sales
♠ Seeds & Fertilizers
♠ Automobile showroom
♠ Hotel/fast food
♠ Books & store
♠ Beauty products etc.
One can open a shop with any of the above products for direct sale/service to customers at a suitable place.
A franchise business is one where an owner gives the right to others to sell products of his brand in various regions to expand his business.
The person granting permission to carry out the sale of his products is called a franchise, and one who acquires the permission (license) to sell the products is called a franchisee.
There are many franchise businesses globally, and some examples are Mac Donalds, Bata, Woodland, Nike, etc.
We can notice that there are Mac Donald restaurants in many cities yet the menu or food items served remain of the same quality and formula (taste).
But the owner of each restaurant is different. Yet, they have got a license from the brand owner of Mac Donald’s to carry on business using the brand name (label) and also the formula in food item preparation. Hence we notice the label or logo on the restaurant to be of the same design everywhere.
Similarly, in the shoe and dress category, like woodlands, Nike, etc., we can find shops or showrooms in almost every city carrying the brand logo. The owners are independent but have the right to sell only the products of that brand. The products are manufactured by the actual owner (franchiser) of the brand name and supplied to the independent shopkeepers (franchisees).
The franchisee makes a good margin but pays a specific portion of his income to the franchiser to own the franchise license.
A franchise business is one of the least risky options as you have nothing to worry about product quality, brand popularity, etc.
You just need a suitable place, investment to put a shop and sell the products. So it can also be a side business idea that requires a small investment to run for a long time.
Franchise business its pros and cons
The pros of being a franchisee
- Since he sells branded products, it is easy to sell the product as there is a good reputation.
- The franchiser carries out intense advertisements is intensely carried out by the franchiser.
- No hassle or worry about the quality of the product he sells. Since the company provides a warranty for the products sold.
Cons of being a franchisee
- It can sell only one brand of products. Limiting sales.
- Has to abide by the rules of the franchiser and has to provide service as per the agreements.
- Has to part some portion of his income to the franchiser.
Pros to the Franchiser
- Easy expansion of his business and brand and, thereby, income.
- Minimize the risks of loss as he is not investing capital in other locations where products are sold.
- Minimal workload as multiple people are involved in sales turnover.
- Royalty to his children from his brand.
Wholesales/dealerships as Small business ideas:
These are intermediate between direct/retail sales and manufacturers. They are not directly involved with customers. They distribute a specific category of goods to retailers.
The margins are low compared to what a retailer gets in the sale of products. But since they dispense large quantities of products to retailers, their income is quite high.
They involve a lot of work in terms of maintenance of accounts & records, collection of money from retailers, and also revoking any unsold products from retailers to return back to the manufacturer. They also need to be alert to maintain stock by receiving it from manufacturers. Some examples include:
♠ Egg wholesale.
♠ Medicine wholesale
♠ Plastic bags.
Manufacture or production ideas
These are a bit higher level of small business ideas. They involve more investment, labor, and also risk compared to the above types of businesses.
But they have the advantage of easy expansion if one can build a brand name and trust among customers. This is not possible in the above two types. If one establishes a dairy business and earns a good name & fame for the quality of the product, then one produces more of the product to sell in other cities or even states or countries.
So expansion chances are more, and a small business idea can turn out into a large-scale business. Examples of small business ideas with production include
♠ Edible oil
♠ Brick manufacture Horticulture
♠ Fast food center.
♠ Cement Bricks.
Online sales: Online shopping has huge potential with minimal investment. You can opt to be a seller on Amazon and display a few products for sale.
Since Amazon is a huge marketplace, you can easily get customers on a long-term basis. Just competitive pricing can help overcome your competitors in online sales.
Other business ideas include
1. Marketing: Like Amway products or any other products, including opening a shop. Even making insurance policies can be an option.
2. Share business: This is quite easy, and one need not invest a heavy amount at once. Buying shares every month or so with a small amount can lead to a large investment in a span of 3 years or more If one has a regular watch on market behavior, he can make better profits by selecting shares with better chances of growth in value.
3. Broker for lands and homes: This might not be easy for one who is reserved, but a person with good social interaction can do well. This can be like either buying land or flats with own money and selling them at a higher price or just helping the buyer to buy from seller.
4. Tuition/ coaching institute: If one has good command and interest in any subject like languages, STEM, Arts, etc., he can act as a tutor or open his own tuition institute. These institutes run during non-school hours like in the evenings after 5 pm to late night or in the early morning from 4 Am to 7 or 8 Am. So this won’t disturb regular job or business hours.
5. Blogging or other online income sources; Many techies and students take up this option as a side business. It is quite a time taking and highly competitive option.
6. Hotel business. This is a good side business option if one has an interest in food or cooking. This is also an ever-green income option if one builds a good reputation in the town.
7. Transport services (small scale): Owning a few cars or small utility vehicles, then they can be rented for tourists or other visitors visiting the city. This is a good side business in pilgrim places or big cities. But also one need to have some network of friends to find customers daily.
8. Online sales: Online shopping sites like amazon have huge potential to help generate sale for your products in short with minimal promotions.
9. Franchise: Franchise business have minimal risk with great sales potential if one has needed capital and also have suitable place for business.
Many of them will act a small business ideas if one wishes to perceive as they have limited capital needed.