Start a small business

While in-person shopping in brick-and-mortar stores has taken a dip, it is still alive and well in certain business categories. There are also indications that it is coming back more broadly. That said, online businesses are largely where the action is, and with the right website and search engine capabilities, starting an online business is a relatively easy option with minimal overhead and startup costs.

Starting a small business can range from something as simple as selling on Ebay to something as complex as opening a retail store or restaurant. The size of your business will directly relate to the type of business you are starting. Do you envision yourself being hands-on in the day-to-day operations? Is it a business you can manage on your own, or is extra staff essential to its success? One important consideration is to do your research on the competitive environment and market potential, and to keep your overhead costs as low as possible until you begin generating sales.

If you need to earn money quickly, and cannot take financial risks, you should consider a small online business or becoming a freelancer (see Solopreneur/Freelancer/Independent Professional in this site). If you have professional skills that are in demand (accounting, marketing, web development, content creation), becoming a consultant (see Be a Consultant, also in this site) could also be a good route for you.

In 2021, revenue for businesses with 2-4 employees average $387,000; with 5-9 employee average $1,080,000; 10-19 employees average $2,164,000; 20-99 employees average $7,124,000; and 100-499 employees average $40,775,000.  But remember that revenue is not profitability… revenue is the money you take in. Profit flows after all expenses are paid.

According to the SBA, the average business with 2-4 employees, the profit is $27,000+; for 5-9 employees, profit is $75,000+; for 10-19 employees, profit is $151,000+, for 20- 99 employees, profit is $498,000+.  Generally, one-person businesses do not generate a significant profit. Keep in mind that is a generalization - some single person businesses make a lot more, some a lot less.

No, but it will be helpful. However, if you have the essential traits of a small business owner, and are a quick learner, you can take advantage of new business trends and thrive in a field where there are few or no “experienced” people. Not long ago no one knew what a CBD store was and nobody had experience in it, so those who saw that opportunity not only entered the market, they created the market. Having the means to finance a startup and a willingness to take on risk are important factors beyond business experience.

After doing your market research, a business plan is your next step. Writing one will guide you through many of the areas you need to consider and will help you determine what size business is right for you. It will also be useful in raising or borrowing money, as any investor or bank will want to see your plan, including financial projections.