Things To Know When Starting A Micro Business
Business owners are constantly trying to cut back on expenses and streamline operations in order to minimize expenditures and waste, while maximizing productivity and profits. From this philosophy, we have arrived at the model of the micro business.
What Is A Micro Business?
By definition, a micro business is comprised of fewer than five employees (including the owner). The business is not part of, nor is it associated with a larger operation. Most real life examples of micro businesses are operations that are run out of the home, or a small office space. There is no revenue range associated with a micro business, and they can generate anywhere from a few thousand to million of dollars in revenue.
The Advantages Of Owning A Micro Business
One of the biggest benefits of owning a micro business is the streamlined corporate structure. Often times, micro businesses consist of one person, or two partners. Small organizations usually have direct communication, clear goals, and the people are highly motivated to make sales and turn a profit. Perhaps the most attractive aspect of running a micro business is that, because of the small organization, the profits are relatively high, so less money has to get spread over payroll and benefits.
The Disadvantages Of Owning A Micro Business
This largest disadvantage to micro businesses is the risk involved. When sales are great and there is a decent customer interest, a micro business can have almost limitless success. However, because of the size of the operation, a downturn in the economy or a poor sales period can destroy the sustainability of a micro business. This can often leave the business owner on shaky financial ground with very little options for recourse, having personally invested in the micro business.
Wearing Many Hats
Owning a micro business required entrepreneurs to have a very diversified skill sets. In many cases, micro business owners play the roles of accountant, marketing, sales, production, consulting, quality control, project manager, and all of the other necessary functions. This saves a tremendous amount of money on payroll, but it can also make for some very long days and nights when trying to balance all of the functions and focus on running the business.
Outsourcing For Micro Businesses
In order to cur down on time spent performing each function within a micro business, entrepreneurs will often outsource things like accounting, advertising, etc. to third party companies. This can free up a lot of time, so that micro business owners can focus on running the business and making sales.
Financing A Micro Business
Micro businesses – like almost any operation – often need extra working capital in order to launch or reach their target audience. Unfortunately, banks are reluctant to lend money to micro business owners, because the small scale of the operation and lack of established financial history make them huge risks for loans. This can discourage many micro business owners, and they end up maxing out credit cards, borrowing from friends and family, or taking on large amounts of personal debt just to sustain the operation. Fortunately, the world of commercial finance can offer a number of options to micro business owners to get them the capital they need. Everything from merchant cash advances, equipment leasing, unsecured business lines of credit, micro loans, and more are viable financing solutions that micro business owners can use to their advantage. Many of these products do not involve taking on debt, and the terms are much more flexible than conventional bank loans.
Types Of Micro Businesses
Now that we have defined the model of the micro business, as well as its pros and cons, we will look at some of the top micro businesses out there.
Being a personal trainer is one of the top micro businesses because it is in a field with a nearly endless customer base, has a low overhead, and the revenue goes to one person (the trainer). With people becoming more focused on fitness, many want to get in shape and exercise. However, not everyone has the time to drive out of their way to get to a gym, and many need a regimen that is more tailored to their personal needs and goals. A personal trainer works with customers through scheduled in-home appointments to devise an exercise routine to help them reach an ideal body mass, get to that weightlifting goal, or simply help them exercise so they can fit into that outfit for an upcoming special occasion. For those with a mind (and body) for fitness, becoming a personal trainer is a great micro-business opportunity.
Not everyone knows how to cook, nor do they have the time to do so. On top of that, there are very few affordable restaurants that cater to people with specific dietary needs or allergies. To this end, personal chefs have been starting micro businesses to provide their services to people who otherwise would not be eating healthy, delicious meals. While there is some overhead involved in running a food-related business, that cost can be built into the invoices that customers receive. This is a micro business model that allows for great creativity, as well as the opportunity to build a strong reputation through word of mouth, as customer rave about what they had to eat the night before.
Some of the most successful micro businesses are those that sell specialty items or those that fill a gap in a specific market. Mobile app designers, customer jewelry makers, small batch craft cheeses – all of these are micro businesses, each with success stories where the business went from serving a small market to making hundreds of thousands of dollars. Look around, and if you wish there were a product or service that you could use yourself, the odds are pretty good that there are other people who would pay for those things, as well. And if you can fill that vacuum, then you have the makings for a successful micro business.
Commercial Finance Micro Business Opportunity
If you are looking for micro business opportunities that have low overhead and startup costs, plus the potential for unlimited profitability, you cannot do better than the Commercial Capital Training Group (CCTG).
CCTG offers training in commercial finance, and gives graduates the tools necessary to start their own micro businesses that can be run out of the house and on your schedule. CCTG provides a recession-proof model to bring business owners and lenders together to make agreements, and allows you to get your share of those agreements, plus any residual fees that are written into the contract.
Graduates from the Commercial Capital Training Group have access to myriad lending products and programs, as well as our exclusive board of lenders, 24/7 support network, and the ability to own your own business, free of any larger organization – where the profits are all yours, and they are limitless.