A business house can be categorized on the basis of capital involved, size of manpower, on its infrastructure or its diversity in locations. A business may have a small capital involved in it but may have a very large manpower. Another organization may a very large capital involved but minuscule manpower.We will be discussing about small businesses that everything about them is small; be it capital, manpower or other resources.
But, being small doesn’t mean that it is also small in profits: their profits may be very high as it generally serves to niche markets.
List Of Different Types Of Small Businesses
Mom & Pop Stores
these stores are operated by husband and wife team whose children also help them occasionally; so the name goes. These one or two room shops exist in residential areas and cater to the people of that locality. They know the need of the people of their locality are and tries to fulfill them accordingly.
They are on first name basis with their customers and environment is highly informal. They generally deal with groceries, fruits, vegetable, and stationary and may also store commodities that are required by customers on regular basis. The whole family is involved in this business and service and product is always good.
Home Based Business
In this type of business a commercial space or office is not required but operates from their house itself. This type of business is most suitable for people go cannot be out of their house for long hours for any reasons. Housewives advocate this type of business very much; they stay in house, look after the kids and do business simultaneously. Day care center, cake and chocolate making, portrait making, web designing, photo editing, tailoring, etc. are most favored home based business. Writers doing freelance work are also home based. In this type of business manpower involved is very less; mostly it’s only one person doing the business.
When a small business succeeds, the owners start replicating their business, they offer franchise of their business. A person in other part of town or in another city takes franchise and starts business. There are many advantages in this type of business model: the capital involved is less, it’s a proven business model, brand name is established and business expertise is available.
As per agreement the model owner provides all the expertise, training and a brand name, the franchisee provides space, capital, day to day operations and administration. The profits are shared in agreed ratio between them. Worldwide, fast food and pizza chains are the prime examples of franchise business.
Cafe & Restaurants
When people start thinking about doing a business, opening a restaurant or cafe comes to mind. Skill involved in this type of business is very less and there’s always demand, as people will never stop eating. Opened by roadsides or street corners all these eateries have a very uniqueness about them. The USP of these restaurants and cafes are their capability to differentiate themselves from others.
Some provide excellent breakfasts, while others will give you mouth watering lunch and dinners. Some may specialize in providing you the best coffee round the clock or give you the best sandwiches in town. This business requires initial investment in form of furniture, crockery or utensils. The gross profit margin is about 50% in this type of business.
With the advent of internet and easing of bandwidth, the online business has really taken off. Internet is the medium that gives you the power of thinking big without having anything physically big. You can have your shopping mall online. Your customers can be any from any corner of the world.
Setting up an online store is much easier and less time consuming than doing the same physically, capital involved is fraction of that that is required in stone and mortar case. You can sell products online, offer your services, do marketing online, design websites, do photo editing etc. This is also a very good medium for doing business for very niche products and services.
Women Owned Business
As government round the world are providing special fund and services to women, these types of business has really taken off. A group of women come together, form an association and do business. It’s mandatory to have only women in the group. Governments recognize these groups and provide them capital with much lower rates of interest than that is prevalent in the market. It has also been established that success rate of these groups are very high and default rate in repayments is very less. If you are a women and reading this, you are capable of forming a group then go ahead and start a business today.
With people becoming health conscious, misuse of fertilizers and pesticides. People started preferring organic foods over commercially produced. Cost of production is less as chemical fertilizers or pesticides are used. As the operations are on small scale, no heavy equipment or machinery is required.
The production is on small scale and market is niche, people pay higher price for healthy and tasty food; organic fruits and vegetables taste better than commercially produced ones. Vegetables and fruits are the most favored items in an organic farm. Products are only that much harvested that can be consumed in a day. Every day it offers a fresh stock of fruits and vegetables. By doing organic farming you are also paying back nature what you have taken from it and reducing the carbon print.
Part time business is also in vogue these days as the investment and capital required is very less. People has started doing these types business in order to supplement their regular income. Delivery of milk and newspaper is the best known part time business.
Network and multi level marketing is also being adapted by people as part time business. Insurance agency is also high paying part time business. There are no limits in this type of business, if you have spare time and have talent, you can convert it to a business.
These are some of the popular small business models. There is nothing small in a business: you start something doing in your spare time, graduate it to a full time profession and ultimately franchise them. Start today ……