Small Business Ideas - for the aspiring entrepreneur

The search for a business idea

Looking for inspiration to find the right business?

So maybe you're sick of working the traditional nine-to-five, or sick of working for somebody else, or perhaps you're tired of spending so much of your time commuting to and from work - and you're thinking about starting your own business? Maybe even a home-based business? ...... But the big question you might be struggling with is this one - what sort of business should you start?

Tens of thousands of aspiring entrepreneurs around the world right now are thinking the same thing - not just here in Australia, but also in India, the U.K, Europe and the U.S  ...... Although less than half will end up actually doing something about it.  But time invested in thinking and careful planning should always come before doing anyhow ..... So exploring different ideas for your potential business can be an important early step in the process. As long as you also recognise when the time for bold action has arrived.

Let's just take a few moments and think about where different small business owners have commenced their journey from - and see if that might provide you with any potential inspiration or insight.

"... the nature of business is to solve a problem and somehow make life easier for a consumer"

There are some entrepreneurs who already have a clear vision for the service or product they intend to bring to market - they have recognised that a gap exists in the market-place and that there is a problem waiting to be solved. These entrepreneurs simply have to plan how best to commercialise their "solution" and launch as a business. 

".... from employee to becoming your own boss"

There are other entrepreneurs whose background is such that they have possessed specialist or technical skills - as an accountant, hairdresser, carpenter, plumber or mechanic - but have been working as an employee for someone else. Then one day they found themselves awakening to the idea that maybe they could be their own boss and offer their expertise direct to consumers. 

Mind you, there are still a lot of business skills which have to be acquired. Just because you're a great plumber, doesn't mean you will be successful in running your own plumbing business. There's a lot to learn about marketing, book-keeping and finances for example.

But what if you're a plumber who's sick and tired of  that line of work - and maybe wanting to start up a business in a completely new space. Then you will be searching for a business idea. 

"Sometimes it's wiser to test the idea as a "side-line" before quitting your day job"

Before we look at business ideas - two quick tips. Firstly, before going down the path of going full-time with your business idea, see if you can do it part-time "on the side". In other words, you will keep your "day-job" and experiment with the idea to help evaluate whether there is sufficient demand for the product or service. 

"Testing the water" before jumping in can be a wise risk management strategy. This is something that I certainly did many years ago, before establishing my own management training business, Performance Development. 

A second quick tip is to consider what you are naturally interested in and passionate about. Maybe you love playing golf - AND you're also good at it. You've played it for 20 years. Maybe you think about promoting private golfing lessons at a small club that doesn't have their own "pro". Or maybe you promote a service of being a paid golfing partner, who also provides some in-game coaching as you go around with your partner on the greens. Just imagine if you could find a way to turn your hobby into a small stream of income!

40 business ideas that require minimal start-up capital

A home based business has less running costs 

Here's a range of different ideas for a possible business. Various categories and industries are represented - for example products or services relating to Health and wellness, Food and snacks, various Home and garden services. 

However, do keep in mind whether the idea is viable depends upon your ability to differentiate yourself from existing competition in that market .... Some ideas might require additional training or have certification requirements. However they all are relatively easy in terms of having the benefit of requiring minimal up-front start-up capital. And many of them can be home-based business ideas - avoiding the cost of leasing a premise. 

But at this point, the key is to open up your thinking to consider new possibilities ... 

1. Website development or graphic design
2. Car detailing
3. House cleaning
4. Garden maintenance or landscaping
5. Home maintenance, handyman or house repairs
6. Window cleaning
7. Cafe, restaurant, coffee shop or catering business
8. Teaching or tutoring in a field of your expertise (eg. music, language ....)
9. House sitting
10. Pet minding
11. Dog walking or dog training
12. Pet grooming
13. Interior design / decorating or painting
14. Special event planning (weddings, anniversaries, holidays ...)
15. Life coaching
16. Personal fitness training
17. Photographer
18. Gift basket service
19. On-line art & craft supplies
20. Furniture removal or small transport service
21. Air-bnb host - or bed-and-breakfast
22. Travel guide
23. Freelance copywriter or editor
24. Dress maker or clothing alterations
25. Florist
26. Gutter cleaning
27. Rubbish removal
28. Home stager
29. Massage therapist
30. Resume writer
31. Soap or candle making
32. Baking 
33. Cake decorating
34. Translation service provider
35. Video producer
36. Virtual assistant
37. Social media consultancy
38. Technology services such as app development 
39. Writing e-books
40. Online retail or eBay store - selling anything from hand-made birthday cards, niche cosmetics, skin care or hair care products, smart-phone accessories. This easily lends itself to starting up initially as a home based business, simply requiring a room set aside for storage of products and packaging.

In closing, once you find an idea that has appeal for you - then the real work begins. Undertaking a more detailed stage of market-research that involves assessing consumer demand,  identifying existing competition and whether you would be able to differentiate yourself in terms of price, service or ease of accessibility (eg. maybe promoting yourself as the "local" supplier").  

If this research suggests the idea seems feasible, then the next step is preparing a business plan. It's all an exciting journey - and I wish you well.

P.S  Could buying a franchise be another option for you?
Another option you might consider is whether a franchise opportunity could be right for you. Training, systems, marketing, business support and association with a known brand can be some of the advantages. Although care should always be taken with this, because of the limitations and obligations that some franchise contracts can place upon a franchisee - an article that could be of interest to you is in Kochie's Business Builders blog - Top Ten Australian Franchises . 

Relevant articles

- Five quick tips if you're thinking of starting your own business

- Starting a business - a guide to costs

- Starting and managing your own small business

The small business landscape in Australia - 2015

In a report prepared this year, 2015, for the Reserve Bank of Australia, researchers looked at some of the major challenges faced by small business. The report presented a nice snapshot of the small business landscape as it appears at present in Australia.

The report not surprisingly found that the failure rate of small businesses is significantly higher than that of large business ("large" being defined as those businesses having greater than 200 staff)

A definition of "small business"

The report used one of the most common definitions of "small business" here in Australia as ".... an entity which is independent and privately owned and which employs less than 20 staff". If they are actively trading, then these entities will require an ABN - which in turn enables the ABS (Australian Bureau of Statistics) to gather and collate data to gain a demographic profile of small business. In practice, most small business owners "manage" their business and closely control it's operations.

The wide range of small businesses in Australia

The small business sector in Australia comprises three broad parts. One part provides a range of professional services to other businesses and households such as tradespeople (electricians, plumbers, roofers, landscapers, painters), mechanics and auto sales dealers, skilled professionals (lawyers, accountants, financial planners, consultants), doctors and dentists, other health and exercise practitioners, real estate and insurance agents, information technology providers and tourism-related businesses (bed and breakfast facilities, tour operators).

Another part represents various types of retail outlets, including small shopkeepers (grocers, petrol stations, hardware, hairdressers, beauticians, newsagents, jewellers, dry cleaners, small clothing, home and hardware stores) and processed food and drink providers (liquor stores, bars, take outs, restaurants).

Finally, there are a number of companies that produce a range of niche and other goods in the manufacturing, construction and agricultural sectors

Most owners of small businesses are "self-employed"

The Reserve Bank of Australia report identified that there were over 2 million small businesses that were actively trading in Australia. This figure represents over 95% of firms trading in the Australian economy - of which more than two-thirds do not employ staff (ie. the owners are "self-employed"). And one quarter employ 1- 4 staff, and are defined as micro-businesses.

Furthermore, the report identified that over one-third of small businesses are trading within the "business services" industry.

Small business contribution to the economy

In terms of employment, the small business sector is a substantial employer - in many industries small business represents the biggest employer.

In regional and rural areas around the country (outside of the mining industry), economies of scale are reduced and do not offer large business the same advantages as what they do in metropolitan areas - so it tends to be small business that is delivering services and goods.

One of the most interesting points the research found was that although the actual amount of R& D expenditure of small business was understandably less than large business, the actual number of firms engaged in "innovative activity" was greater in small business. Over 85% of small business firms reported that they were engaged in some type of innovative activity. This represents a large number of entrepreneurial innovation activities and as such the small business sector can be an important source of bringing new products to market.

The motivation of the small business owner

The report ( The Economic Trends, Challenges and Behaviour of Small Businesses in Australia  )referred to recent research in the United States which identified three of the most common  motivators for those entering small business .....  Typically it was a life-style choice, where the establishment of the firm is driven by either one or a combination of the following -

1. A desire to be one’s own boss,
2. To have more control over the hours of work,
3. To engage in a passion and hobby, that also produces income

A low survival rate for small business

Many of us have heard that there is a disturbing high incidence of "failure" in the small business sector. Anyone running a small business, particularly those in the retail sector, will tell you that it's tough and that selling prices have come under intense pressure. Hence the number of "sales" and "huge discounts" regularly advertised now-days - great for consumers, challenging for business owners. Small business have scaled back both their hiring and their capital spending - playing it cautious.

The Reserve Bank report identified that  "..... less than half of the firms that were established in 2009/10 are still operating" Although some of these figures would likely represent owners who had decided to retire, and some businesses that may have merged - the report concluded that the vast majority of these businesses that are no longer operating were the "consequence of business failure". It is debatable however, whether this is indeed a valid conclusion. Mind you, in the same way, it could be said that just because a small business continues to operate and trade, it does not mean that it is doing so successfully.
 
Challenges faced by small business

The report confirmed some of the major challenges faced by small business owners and which were contributing to the high exit rate ....

1. Unpredictable fluctuations in demand, typically associated with fluctuations in economic conditions and consumer confidence 
2. Cash flow strains - with customers delaying or defaulting in payment
3. Difficulty to compete on prices against larger businesses who are able to take advantage of economies of scale. This advantage id not limited to production and procurement costs, but extends to costs associated with compliance
4. Access to and availability of capital which can limit, or at least delay investment and expansion plans
5. Management deficiencies - with technical experts taking on responsibility for things like staff recruitment and staff management, financial management and marketing - areas in which they lack capability and have received inadequate training
6. Succession planning

More small business statistics

An  additional report that was prepared for the Australian Government Department of Trade (Dec 2012) provided some further statistics on the entry and exit rates for small business. At the time that report was written, it was interesting to note that the highest number of small business entrants were located in New South Wales, followed by Queensland ahead of Victoria.

Conclusion

So what can you take away from this report - particularly if you are a small business owner?

Well, you probably don't need a government funded report to tell you that running a small business isn't all a bed of roses. It confirms though, that there is no room for complacency as a small business owner - one of the keys is to keep on learning and improving. This allows you to adapt to changes in the marketplace. And the report is a reminder of the need for resilience and mental toughness 

But if you are new to small business, let me say this. If you find there comes a time in the future when you do need to exit the business - do NOT regard this as a failure. The failure would have been to never have attempted it. And you will have learned from the experience - so that next time, you will be wiser and better prepared should you decide to commence another business. It is a fear of failure that prevents may people from trying new things - so regardless of whether you achieved the business goals you set for yourself, never-the-less congratulate yourself for having the courage to invest in yourself.

It may well be that one of the lessons you take away from an unsuccessful outcome is the need to gain more mentoring and guidance from experienced business people to help you launch your new business next time.

Business incubators have become an increasingly utilised resource that provide both physical locations for start-ups, as well as networking opportunities with other entrepreneurs. Small business accelerator programs are also offered throughout Australia that support entrepreneurs take their ideas and commercialise them to the next level.

In closing, let me say that a smart business person knows when to walk away from an unprofitable venture. And as Richard Branson says "Business opportunities are like a bus - if you miss one, don't worry because another one eventually will come along"


About the author
Brian Carroll is the founder of Performance Development, a training business in Melbourne, Australia.  He is an experienced management coach with a passion for helping people achieve their goals in life and business. You can find out more about Brian at his Google + profile

How a start-up small business went international, in less than a year

It's every entrepreneur's dream to grow their small business and gain an international base of customers as well as a prominent media profile, wouldn't you say? ....... But what about achieving that dream within your first year of starting-up? 

Well, here's the story of a woman who worked in the corporate arena for many years and found a way to successfully commercialise her passion through establishing a career counselling business, Career Oracle.

Based in Queensland, Australia , Kate Middleton (no, not Prince William's wife) is the founder of a business that helps people to identify their skills, interests and strengths - and then go on to locate and land the role that is in alignment with these.

Kate has achieved a remarkable rate of business growth in a short period of time and therefore I was confident would be able to share some useful tips with us .....

• Kate, what was the motivation behind starting your own business earlier this year?

For me, starting my own business was about following my heart and commercialising a passion project. By way of background, prior to launching Career Oracle, I enjoyed 12 years’ experience, mostly in senior management level Project, Quality, Change and Business Development roles. I loved it and I was good at it. However, drawing from my own personal experience, I identified that talent that can excel in one company may not thrive at all in a new environment.

I wanted to help people find happiness and engagement in a job that they love by creating a tool that helps them not only assess their own personal value proposition; but also assess the companies that they are applying for jobs with. I wanted to help people determine how likely they are to thrive in their new environment and make an informed decision.

On top of my assessment tool, I started helping friends, family and colleagues to identify their proven achievements and then write amazing resumes, cover letters and complete detailed interview coaching catered specifically for the jobs they were applying for. My friends and I ended up achieving an uncanny record of success using my various models, so I decided to launch the website and social media channels earlier this year (2014) as a side business.

 

Within 6 months I had achieved so much scale that I had to leave my corporate job and start building a team. I now have market reach all across Australia and have serviced clients in Dubai, India, Pakistan, Singapore, Japan and the US.

• How would you describe your experience during your first year of business – and how does it compare to what you’d anticipated when doing your business plan?

I am currently at the 8 month mark and there have been so many wonderful surprises. In terms of all of the traditional elements of my business plan related to launching my website and social media channels and building an audience, this has all gone to plan. My expansion strategy based on marketing, PR and building strategic partnerships have also thankfully been executed to plan.

The two biggest things I did not anticipate were firstly the rate of growth and having to employ a team so quickly. And secondly the emergence of new customer segments that I had not originally accounted for.

I now know that it is really important to set ambitious targets so that you continue to achieve momentum and push yourself. Don’t be afraid to think big! 

The other element is, if the market opens up new opportunities for you and customers from a new demographic present themselves – seriously consider adapting some of your model to cater for them. This is what I have done for my international clients and it is definitely paying dividends.

• In a relatively short period of time you’ve succeeded in gaining quite a profile in the media – what have you found to be some of the keys to doing PR effectively?

Thank you; it has been a really fun ride. As with most effective business relationships there needs to be an element of mutual benefit. This is the approach I have taken with PR. Instead of just focusing on the hard and direct business plug, I have also contributed articles to publications that are representative of some of my core customer segments. This has been done to position myself as a subject matter expert in my field and provide some free of charge, value added information to the people who might typically use my service.

It really pays to sit down and have a think about which online, print and radio publications best represent your target audience. From there, review the articles they publish to understand some of the angles they prefer. PR does not just need to be about a direct grab on your business.

You could contribute tips around your area of expertise, pen an inspirational story about your entrepreneurial journey or participate as a business in magazine offers and giveaways. Do remember to request a direct mention of your business name and provide a live link to your website for inclusion in any online articles. Another great approach is to subscribe to media “Call Out” sites such as Source bottle. This will alert you to opportunities to contribute to, or be featured in various media stories and articles related to your product or service.

•  What’s been your biggest challenge?

My biggest challenge has been replicating and scaling up a business model that was essentially built around my own core business acumen and personal insights into corporate Australia.

Even with the best systems, great templates, wonderful qualified staff and processes focused around service – there are some things that simply cannot be taught. That will continue to be my challenge and biggest opportunity to solve over the next year. I am now entering into a new phase where I will be pitching for fundingto create really innovative mechanisms and online tools that allow others to complete a client assessment as closely to what I would do as possible. This will also be crucial in achieving the international scale I am gunning for.

• So far, what have you found to be the most cost-effective marketing strategies for your consulting business?

I am a bit of a risk taker and am happy to go hard and invest hard to get the right outcome so am still assessing which mediums are most cost -effective. I have found the ROI on SEO quite good and that is definitely something I will continue to invest in as part of my expansion strategy.

The best, most cost-effective marketing strategies really will vary from business to business and across industries. I think the better question to ask yourself as an entrepreneur is; which marketing channels yield the highest conversion rate for me and what is the cost ratio of that converted lead?

For example, many business owners take a diversified approach and leverage social media and email marketing systems to send out offers and build brand awareness, however converting a Facebook, Twitter or email marketing lead into a paying customer is typically very low (1-2% uptake). For that reason, I would recommend thinking about who your customers are, what mediums they are most likely to be engaged with (online, email, print, radio, television) and then build your strategy and budget around that.

• What advice would you offer to budding entrepreneurs, the ones who are still undecided about whether the potential rewards are worth the risks of starting their own business?

What does your life look like in 10 years’ time? Do you dream of working for yourself or someone else? Do you picture having a family and therefore would you like more flexibility? Are you comfortable with a certain level of risk?

Be clear on what your life feels like and then you will have your answer.

Finally, it is a bit cliché, but you will never look back on your life and regret the things you did do, it will be the opportunities that you missed out on that will weigh on your mind. You only get one shot at life, if you believe in your idea, there is a market for it and it sets a fire in your belly, just go for it!

• Any final tips for our readers?

Be nimble, test new approaches, learn quickly, fail fast then try again. No one is going to get their business model perfect on day 1, but as long as you apply a continuous improvement mindset and always focus on great customer outcomes, you really can’t go wrong.

To that end, it also really pays to take a day out every few months to focus on strategy. Get away from working in your business and devote time to work ON your business. Look at your company / service through a critical lens. If you were an external business consultant looking into you and your team what would you change, optimise, systemise, get rid of or improve upon?

Many thanks to you Kate, for sharing with us your thoughts and experience on growing a small business. Although based here in Australia, your success in achieving an international profile and gaining clients across the Middle-East , Asia and the U.S within the first year of starting your consulting business, can be an inspiration to other entrepreneurs.

 

About the interviewer
Brian Carroll is the founder of Performance Development, a training business in Melbourne, Australia.  He is an experienced management coach with a passion for helping people achieve their goals in life and business. You can find out more about Brian at his Google + profile