10 great small business ideas for beginners to get started today!
Starting your own business can be an exciting experience, but it can also be overwhelming at the same time. As with anything else in life, you have to take things one step at a time if you want to get where you want to go and achieve what you want to achieve. That’s why we’ve put together this guide on how to start a small business, complete with 10 of the best small business ideas that are perfect for beginners who are just getting started in their entrepreneurial careers. Don’t be afraid to try out these ideas; they’re sure to help you reach your goals!
1) What can you make?
The first step to becoming a freelancer is finding a niche. Are you good at graphic design? Data entry? Marketing? What do people come to you with questions about every day? What skills do they come to you with questions about every day? That’s your niche. That’s what other people hire you for.
2) Know who your customers are
Identifying your target market is essential. If you’re going to create a brand new product or service, you have to know who it’s for and why they’ll want it. Otherwise, you may as well leave your idea on paper. A good way to start with customer identification is by creating buyer personas—essentially fictional profiles of your ideal customers. These will help you understand what motivates them, what problems they face and how much money they make. Once you understand these things, it will be easier to create products that solve their problems in an appealing way (and charge them accordingly). For more information about buyer personas, check out our recent post: The Ultimate Guide To Creating Buyer Personas For Your Business .
3) Where can you sell it?
Once you’ve come up with a product idea, where do you go from there? The last thing you want is for your great idea to flounder because you don’t know where or how to sell it. Fortunately, there are plenty of places online and offline that can help give your products a boost. Consider targeting venues based on their traffic or user demographics—there are countless options. Take some time to research each option and see which one makes sense for your brand. Here are just a few:
4) How much will it cost?
This is an important step in any startup plan. Before you start spending your time or money on a potential new business, it’s essential that you have a good idea of how much it will cost and how much money you will have available. If a project seems like it might be too expensive, investigate ways to scale back your initial investment or find ways to make it more affordable. For example, if you want to open a restaurant but don’t have enough cash up front, consider partnering with someone who has some capital to help launch your venture. Or maybe you can hire less experienced workers at lower wages until things are off the ground. There are many different options—the key is finding one that works for you and doesn’t compromise your vision for your company.
5) Do some research first
When you’re starting a new business, it can be difficult to know which idea is best. One way of addressing that issue is by doing some research first—pitching a few dozen people and getting their feedback on your idea, finding out how viable it is in your city, or contacting an expert and brainstorming with them about what might work. Once you’ve done enough research on several ideas, you’ll be able to narrow down exactly which one is best for you.
6) What are the tax implications?
While many new businesses operate as a sole proprietorship, a partnership or S corporation, others incorporate. If you choose incorporation, you’ll need to decide whether your new company will be an C corporation or an S corporation (or something else) and then learn what tax implications come with each decision. Your choice may impact how much money you make off of your business in tax deductions every year. Consider consulting with a financial advisor if you’re uncertain about which option is best for your specific circumstances.
7) Financing options if you need it.
Starting a new venture, whether it’s your own company or a startup, can be expensive. Fortunately, there are a variety of financing options available to help you take your idea from concept to reality. Depending on your needs and budget, you may find that one type of funding is more appropriate than another. If you’re looking for capital to fund an existing business (instead of starting a new one), you might consider applying for loans through banks or credit unions, which typically offer lower interest rates than other types of lenders such as peer-to-peer lending sites like Lending Club and Prosper.
8) Time requirements
Most businesses can be started in less than 3 years. In addition, 80% of businesses are considered microbusinesses and have only 1-5 employees. Because of their size, microbusinesses may seem easy to start, but don’t let their smaller size fool you: microbusinesses require just as much effort and attention as a large company.
9) Get connected with potential customers and suppliers
If you’re hoping to start a local business, consider using a social network as an essential platform. Apps like Yelp and Foursquare can be especially powerful in helping you connect with local customers. For more general use, check out sites like LinkedIn—you can post your experience and expertise on your profile page, which makes it easy for others to find you. When looking at competitors in your industry, see if they have a presence on any of these sites that you don’t. If so, set up accounts and make sure to fill them out completely. This is also a good way to keep track of potential leads. Once you’ve done some initial networking online, reach out directly by phone or email; many professionals are happy to talk about their businesses over coffee or lunch (as long as you pay).
10) How to build your online presence with a website, social media, and SEO.
Once you’ve written your business plan, you’ll know exactly what you need to build your online presence. Starting from scratch? You might need a website, social media accounts, and an SEO strategy. This can be done all at once or one by one. It all depends on how quickly you want your brand and voice out there! The good news is that it doesn’t have to cost much money—or any money at all. There are plenty of free resources available that will help you learn how to set up these digital elements of your business. (And if not, we can help.)