Many erstwhile entrepreneurs decide to go into business for themselves every year. But, you shouldn’t just “go into business.”
Instead, you should try to pick a business or industry that is more likely statistically to add to your chances of success – not always an easy choice to make, as there are 1000s of business models out there with varying strengths and weaknesses. Which industry you select to pursue will go a long way towards detirmening whether you or not your new business succeeds.
Fortunately, some small businesses are known to be more likely to succeed than others, and pursuing one of those offers a significant advantage.
From the ContactMe Blog -
In a post about highly profitable and commonly understood businesses, Rob May of BusinessPundit.com names furniture retailing as an example. In a discussion with a fellow entrepreneur, May was told that the profit margins on furniture are “ridiculous” and furthermore that it can be sold “well below retail” while still turning a healthy profit. Mattresses are an especially high-margin item to sell, according to May:
“Since then, the previously mentioned entrepreneur has learned that mattresses in particular are easy and profitable to sell, and has focused in on those. I’ve always wondered how there could be so many mattress stores around. Now it makes sense.”
One reason furniture retailing (and other high-margin businesses) makes sense for new entrepreneurs is that it is more permissive of mistakes. When you have room to play with in pricing and cost estimation, it is less likely that any one error will freeze your cash flow. This way, the entrepreneur can learn from his or her mistakes rather than being put out of business by them.
Another small business opportunity favored by Rob May is coffee houses. As he explains, “even high quality coffee is just pennies a cup. Add a little sugar and flavored syrup and sell it for $2 and you have a nice profit margin.” Moreover, coffee houses are a natural fit for the type of entrepreneur who wants to put his or her stamp on a business, rather than just passively extracting income from it. Virtually every coffee house exudes its own unique vibe or atmosphere which the owner deliberately creates. Thus, opening your own coffee shop is an opportunity to both profit and express your unique vision.
The caveat of accounting (compared with some of the other businesses mentioned) is that it requires years of specialized training and certification. That said, it is still a tremendous opportunity for profit and growth. One reason is that there is rarely a shortage of demand. The need for accounting services is as old as money itself, and is unlikely to go away anytime soon. Better yet, most people are sensitive and guarded about their private financial information. Once they find an accountant they like and trust, it takes a lot to make them consider the unappealing prospect of turning it over to someone new and unproven.
Financial Planning Services
Financial planning is recognized by the Boston Globe as one of the fastest-growing career opportunities in America. By 2016, it is anticipated that growth in this field will surpass 40% as Baby Boomers begin retiring in large numbers. As a financial planner, you will take on the task of helping clients answer vexing questions about their money and formulate intelligent financial plans to achieve their goals. Best of all, the only required education for becoming a financial planner or adviser is a bachelor’s degree.
Specialized design is another excellent industry in which to start a small business. Provided you have the needed skills and talents, your costs are dramatically reduced by technology (computers, scanners, and software like Adobe Photoshop.) Web designers, for instance, often work off of standard templates that get customized according to a client’s preference. Such methods enable design firms to charge high rates while still turning steady profits.
For those seeking maximum flexibility and freedom in a business opportunity, it’s tough to beat eBay selling. Properly built and managed, an eBay business can function as a machine that sells for you 24 hours a day, 365 days a year, whether you are awake, asleep, working or on vacation. The main requirement of successful eBay selling is an appreciation for the basics of Internet business. So long as you are comfortable working online and understand the eBay business model, there is tremendous opportunity for growth.
Lawn care is a business whose only success requirements are some low-cost tools and an honest willingness to deliver excellent service. Because of how many lawn care companies cannot even be trusted to return phone calls or honor appointments, you can shine just by being conscientious. You will also benefit from word of mouth referrals by developing a reputation as a punctual lawn care provider. Before long, your side business could become a small juggernaut that services customers throughout your part of the state.