In today’s society, small business reigns supreme as pretty much everyone is opening one.Starting off with a small business is an excellent way for entrepreneurs to learn, gain experience, and minimize the risk associated with larger-scale ventures.
As a part of your small business strategy, one crucial step is setting up a formal business entity, such as an LLC (Limited Liability Company). This structure could provide you with personal asset protection, potential tax benefits, and more credibility with clients and investors. In order to streamline this process, you can consider using an llc service, which can take care of the necessary paperwork and formalities, allowing you to focus on your business’ growth.
But before you go rushing in full steam ahead, understand that opening your own business takes a lot of trial and error. It’s not as simple as it appears, which is why it’s best to start off with a small business.
3 Reasons Every Entrepreneur Should Start Off with a Small Business
They’re Easier to Manage
You might be thinking that everyone is going to start off with a small business. While that’s technically true, you’d be amazed to find out how many people try to expand theirs as soon as they can. Expanding and scaling your company successfully should always be included in your goals, but when you’re just starting out, it shouldn’t be an immediate concern.
This is because the more you expand, the more you have to manage. Having too much to manage in a business can be very overwhelming, which can all but kill your motivation. Starting off with a small business and sticking to it, however, gives you the perfect balance between responsibility and having a break.
You Don’t Have to Invest Too Much Money
Everyone has the ability to invest however much they want into their business if they know where to look. The more money you can use, the better off you’ll be. You can apply for a small business loan in Michigan (or elsewhere) for example, or you could even crowdfund to get one foot in the door. But it’s important to keep in mind that opening a business of any kind is an investment within itself, especially when it comes to having one in the real world.
In fact, this is why online businesses like Shopify and Etsy stores have seen such an overwhelming amount of people. The costs are lower, but that doesn’t mean you’re not going to be investing money.
Granted, investing money into your business is a lot easier said than done. Most people start off using their own personal finances to do so, which is called bootstrapping. But bootstrapping can only be kept up for so long until you start requiring outside help. There are two ways for you to get the funds for your small business; small business loans and crowdfunding.
There are Accion Opportunity Fund business loans that are geared toward assisting new owners in the industry by providing funds and additional benefits. The benefits you can receive depends on the lender, so make sure to research them before applying.
Crowdfunding is a process where you basically advertise your business to gain attention and donations. How this works is you come up with a well thought out business venture and present it to your target audience. When doing this, you want to be as transparent as you can.
It’ll help the audience feel like they’re actually a part of the process. If you’re lucky enough, your presentation will catch the eye of an angel investor. Angel investors are wealthy individuals who donate at least $25,000 to a cause they believe in.
Burnout Occurs Less Often
Let’s be honest in that opening and managing a business regardless of its size can be very draining. This is especially true when you first start out. You work hard, barely rest, and might not even see anything for a little while. You have to figure out methods to eliminate stress even when doing that seems stressful. Until there’s some kind of a profit, business owners have to do all the work themselves.
This can occur during the planning stages as well. But when it comes to a small business in particular, burnout occurs less often since there’s not much to figure out. It’s actually another reason why most people prefer to use online business platforms as a lot of the work is already taken care of.
