Many people considering a new business opportunity may equate small businesses to small profits. Well it may surprise you to find out that, according to the US Small Business Administration, “small businesses create two of every three new jobs, produce 39% of the gross national product, and invent more than half the nation’s technological innovation.” With such a high representation statistically, small businesses play a huge roll in today’s economy. Whether you’re interested in starting a home based business, retail franchise or one of the many internet based businesses, there are plenty of advantages that extend far beyond mere profits. So for anyone interested taking a break from climbing the corporate ladder and stepping up into the fastest growing section of the economy, the small business market is the right choice.
Be your own boss. This phase has made it into our everyday vocabulary and is usually placed alongside 2.4 children, picket fences, a chicken in every pot and everything else that makes up the American dream. What is it about being your own boss that is so appealing to the working American? It’s the same principal that our constitution is framed around; freedom, and with a small business, freedom is the name of the game. In addition to being your own boss, a small business allows you to choose your own path for your business. This can be expressed in your businesses core values or mission statement, and small businesses are much more conducive to carrying out personal or even political views since your small size will allow you to have your hand on the pulse of your customers. In a small business you set your own hours, work as much or as little as you want. You can lease retail or commercial space for your business or, as with many home based businesses and work at home franchises, you can choose to work from the comfort of your own home, saving money on operation costs and providing big tax breaks for your home office. Small businesses are also given more freedom from the government with less regulation than large firms, low-interest government loans and a slough of national and state sponsored government business grants available.
Noted business author James H. Gilmore in his book, “Authenticity” writes about consumers, “(they) choose to buy or not buy based on how real they perceive an offering to be. Business today, therefore, is all about being real. Original. Genuine. Sincere. Authentic.” Gilmore has written several acclaimed business books about the rise of the new experience-based economy and how today’s consumer is looking for more than just goods and services, they crave genuine people providing uniquely personal, lasting experiences. The small business owner has the greatest opportunity to capitalize on this emerging economy. With large corporations sending more and more work overseas, and relying more heavily on mass production, the small business owner can provide a truly customized experience to their customers that just isn’t possible for large conglomerates. By providing more personal attention to customers, the small business owner is able to cater to their every need, and learn what their individual customers want and need. This creates the ‘real’ and lasting experience that will keep customers coming back over and over again. Couple this experiential advantage with the ability to move fluidly from one idea, business model or demographic to the next, the small business has the flexibility and mobility keep up with the high demand and ever-changing needs of today’s consumer.
The big question on the minds of investors and entrepreneurs alike is profits. Sure, a small business is fun and exiting, but is it financially viable for the average person? Typical small businesses can rely on their personal interaction, higher standard of service and niche-type markets to afford them a higher profit margin that even big businesses. By making more money per sale or service, a small business can generate huge profits. Furthermore, a small business franchise can capitalize on all of the advantages of a small business, but can also save a great deal of money on research and development, marketing and branding and advertising. A small business or franchise may not be for everyone, but if you are looking for an exciting, personal and profitable alternative to the corporate world, a small business or franchise is definitely the best choice.