Welcome back, I’ll talk about easy to start business ideas in this article, because starting a new businesstoday doesn’t have to be an overly risky pain in the butt.
Easy to start business ideas are not “easy businesses,” there just easy to start. What does that mean? When I think easy to start business, I think of two things: Start up Capital and Time frame to profitability.
Typically when starting a new business there is a 3 year to profitability standard. Don’t get me wrong, businesses differ and some are even profitable immediately. In materials I’ve read, experiences I’ve had, and confirmed by entrepreneurs I’ve known personally is the idea that it will take at least 3 years to be profitable with a new business start up. Why three years? Here are a few of the main reasons:
- Cost of acquiring real estate and work space.
- Cost of equipment.
- Cost of producing initial product.
- Cost of initial marketing to launch business.
- Fixed costs or monthly costs.
- Costs of start up debt.
These are a few of the costs that make a venture a not so easy to start business. It’s pretty simple. Not only do these costs cut into the bottom line, making profitability challenging, they also can greatly impede cash flow. Its an important part of business planningto determine what the cash flow model looks like and how it will preform as the business grows. So an easy to start business venture has to be one that deals with these initial outlays of cash and reduces the fixed expenses to a point low enough to create immediate profitability.
Downside of Easy to Start Businesses.
One obvious down side to businesses that are easy to startis the fact that they are easy to start, its a catch 22, but its real, and it matters. The ease of entry associated with a certain business start up will mean a steady flow of entrepreneurs looking to carve out a piece of the market. So its worth mentioning, don’t be discouraged by having to jump through a few “hoops” in order to get started in a business. Many good small business ideas will rely on specific skill sets or unique knowledge, these are a couple hurdles that can keep many out, and might make the business a better optionfor you if you possess the unique information or skill.
I’m not supposing that its wise to go in search of the easiest business to start, I’m certainly not. From an individual perspective, there are business opportunities that will be easy for you to start as an individual, while still providing a robust barrier to entry to the average person.
Its about setting yourself up for success. Choosing a business to start based on your unique experiences, skill sets, and passions is going to be congruent with finding an easy business to start. You know, the market screams for certain businesses to be started and looking for a small business idea that is in this category and is in a field unique to your skill set is golden.
Many times the way the business is positioned in the market place can create opportunities for success that would be otherwise difficult. Perception is reality, they say, and marketing can create the favorable perception your looking for. Starting a new businessis a challenging endeavor and anything you can do in the planning stages is going to benefit the chance of success for your endeavor.
Got a story of a easy to start business? What are some simple ideas that have made a big difference in your small business start up?