How to open a profitable business
If you do not know how to open a profitable business, there is a chance to make a mistake. Statistics based on the experience of Russian and foreign entrepreneurs, says: almost 3/4 of those who succeeded started independently, from scratch. To get to their number, you should read some recommendations.
Come up with or copy?
As a rule, opening a business is preceded by the formation of some business idea. It can be either unique or borrowed. The unique idea is good because it guarantees the absence of competition at the beginning of the activity, but it can also turn into a lack of interest among buyers. Therefore, borrowed ideas tested by others have a higher chance of success.
After analyzing the business models of entrepreneurs from various industries, it is possible to reveal all the advantages and disadvantages of a niche, as well as strengths and weaknesses – own and others. Any operating model can be used as a prototype, and then supplement and improve it. In no case can not completely copy the idea: first, it deprives the business zest, so necessary for survival in the market, and secondly, threatens lawsuits.
A business model is a template that contains key work points and their related aspects. The model is an important part of the business strategy and the key to the success of the future business. It assesses key areas of development, growth points, etc.
The model explores consumer segments, analyzes existing offers, outlines sales channels, builds a pattern of customer relations, plans revenues and costs, identifies critical resources, identifies priority activities, identifies potential suppliers and partners.
Building a model begins with the definition of a field of activity. In addition to general perspectives, this niche should be interesting, causing a desire to work in it. Then we study the models of successful firms, with the result that one of them is chosen as a prototype. The field of this model is being finalized and acquires a new, unique format.
The final stage is a detailed presentation of the model in the form of a business plan.
How does profitability depend on the niche?
Considering the market for a product or product group as a future niche, it is necessary to pay attention to the dynamics: it is easier to enter a growing market than a formed one. The more stable the situation, the higher the competition and the lower the profitability. Estimate the total volume of the market, its geography and financial characteristics (average check, profitability, potential income). Use the forums to find out the opinions of those businessmen who are already working in the market regarding their prospects. Examine the range and its current demand.
Make out the results in the form of a table, evaluate each item, say, from 1 to 10. A niche that has received the highest rating will most likely be the most profitable. What is profitable to do now? For beginner businessmen who do not have large capital, the most promising areas are:
Trade in everyday goods in retail and small wholesale. The scheme is very simple: you need to find a supplier offering the products in demand and resell them to the public. If you wish, you can purchase goods without prior payment.
Organization of holidays at various levels, their design, with the availability of equipment – musical accompaniment. The niche is good because it does not require a separate room: all the work is done “in the field”. In addition, there is a growing demand for such services.
Web design is another growing niche that is ideal for creative people. All you need is to have a good computer equipment at home.
Buying a franchise from a large company (a chain of restaurants, shops, etc.) eliminates the need to unwind on their own, but to a large extent puts a small entrepreneur in dependence on the franchisor.
Creating an online store – allows you to work in a large area, but requires flexibility and the ability to adapt to the ever-growing demands of the Internet audience.
Direct selling cosmetics – suitable for sociable people who love and know how to sell.
Selling your own products – requires minimal cost and allows you to combine business with an interesting hobby.
There are no secrets that allow one movement to achieve success, but there are several recommendations dictated by common sense: you need to set a clear goal, not to waste energy on trifles and not to lose opportunities to save. Despite the fact that any business requires energy and commitment, creating a profitable business with little capital at the start is a real task.