Small BusinessComments Off
The definition of a Small Business varies around the world. For example in the European Union it is defined as a business with less than 50 employees, in the United States as less than 100 employees and in Australia as less than 20 employees. Small businesses are privately owned and operated.
Pros and Cons
There are many positives and negatives in relation to owning and operating a Small Business. Some of the positives are, independence, being your own boss, making your own decisions, low start up costs and the ability to respond quickly to clients needs in comparison to larger, procrastinating, bureaucratic businesses.
Advances in technology in the last ten years have also made Internet marketing an attractive option for small businesses. There are a variety of ways to market your business online. Including niche marketing websites.
Research also shows that the person starting a very small, or sole operator business, sometimes overlooks the fact that their specific high technical qualifications or skills do not necessarily make them a good business manager. Often additional business management skills must be acquired.
Setting up a Small Business can be a challenging and exciting experience. Sources of funding include personal savings, an equity loan on land or a home, a bank small business loan, loans from relatives or friends and by forming a partnership with another and sharing any of the above, and other, fund raising options. Also consider your internet marketing and online presence, as websites are now very affordable.
Once the business is established it is important to also establish some networking within your industry or professional group to gain and maintain social contact and to attempt to achieve the economies of scale that are available to larger businesses. An example of this could be a professional who, through his professional body or institute, can purchase less expensive, liability or professional indemnity insurance. This is possible because of the institute’s ability to buy in bulk or to even run the schemes themselves.
Small Business examples from around the world, some of which can be run from home include professional offices and rooms for doctors, engineers, architects, surveyors, accountants and solicitors, bed and breakfast establishments, restaurants, general stores, hairdressing salons, many and varied trades and photographic businesses.
Franchise small businesses are of course an option and are suitable for some who require a well known brand name, and therefore the strong purchasing power, but at a price that is affordable to them. One possible disadvantage is that the franchise owners may lose the very independence they desired when deciding to establish their own Small Business.