Small businesses have made a big impact on the corporate world over the past few decades. It is estimated that there are nearly 28 million small businesses across the country and those businesses are responsible for over 65% of the new jobs generated since 1995. With the introduction of the internet small businesses are growing at an unprecedented rate; nearly anyone with a solid idea can become a small business owner in today’s market. Here are few facts everyone ought to consider before starting their own small business.
Finding Your Niche
Every business begins life as a concept. There are plenty of goods and services available on the market today, so this concept either needs to be unique or an improvement on something already available. Naturally, this is the hardest part of any business as it will ultimately determine the value and longevity of a small business. It is recommended that those with a unique concept quickly secure a patent to ensure that the product or service remains unique to your small business. Furthermore, anticipating the target customer-base is crucial. Many businesses exist online where they can enjoy a customer-base that is unrestricted by local geography. Service-based small businesses may not have this option, so determining what kind of business model works best for your company-to-be is a matter of opinion.
The Capital to Move Your Business Forward
Financing is the second-hardest part of starting a business. Estimates from 2009 by the Kauffmann Foundation suggest that the average cost to start a small business was around $30,000. Loans are available to start a business, but many of these rely on a strong credit score and have significant interest rates and penalties should the novice entrepreneur’s business fail to take off. A good number of these start up costs are actually tax deductible. In fact, for the first year of doing business a company can have up to $5,000 in tax deductions. Once a business owner has the idea and the capital, the only remaining step is how to lease office space.
Finding an Office Space for Your Business
Many of those looking to start up their small business are familiar with leasing a car or a house; this is similar to how to lease office space. Most leases to rent office space are surprisingly flexible; whether looking for a one-year or 10-year lease, in most cases small business owners can find something that works in favor of their needs. Although the prices can be high, up to 80% of the cost of office space for rent is actually operational and lease-related. Even companies that are based partially or entirely online need to know how to lease office space properly — online business is drastically different from local business as successful online companies must invest in keen web design, digital marketing, and secure payment processing in order to stay competitive. When looking to rent office space, the five most important elements for office workers themselves are: social space; heating and cooling; food and drink options; furniture quality; and of course access to quality coffee. Keeping the needs of consumers and employees in-mind is one of the best ways to ensure the success of any new small business.