How to open a small business from scratch. Where to start your business - a step-by-step plan from scratch for beginners. Things to think about

From the time when the Soviet Union ceased to exist and Russia became an independent state, its people also became independent. Every person began to think about a more independent life - a life that could provide for him. The majority of the population chose an activity that generates some kind of income. This could be production, trade, provision of commercial services, in a word, anything that implied making a profit. The need for taxation and legalization of commercial affairs led to the founding of small businesses. At the same time, as a rule, there is one manager at the head, and the production capacity is not large enough.

Characteristics and basics of small business

Small businesses are everywhere. In every city there are small organizations that are commercial and operate at the local level. Their real number is much greater than registered in the state system. This fact speaks volumes. First of all, small production sometimes does not allow maintaining the entire enterprise and paying all taxes, including actual wages. The constant injection of funds from sales into increasing output forces some business owners to save on the number of workers and resort to the services of low-skilled workers who are willing to work for lower wages. These facts, of course, affect the quality of the goods produced. The lack of financial resources sometimes does not allow small enterprises to get on their feet and work with a constant investment of profits in production. The absence of a marketing specialist entails greater competition, incorrectly delivered products to the market, and non-sale of seasonal products. With little capital, operating organizations cannot obtain the loan required for development, which for the most part leads to the shadow activities of small businesses, and sometimes to their cancellation. The state is constantly launching programs to support start-up and existing businesses. Financial institutions are also beginning to provide assistance to small businesses by opening credit lines through a partner system or overdraft. Credit lines are supported by the state and, under the most favorable conditions, allow you to develop your business with minimal risks. All loan funds are calculated both for direct financial injection and for the provision of machinery and equipment to expand production. Support from the state and banks makes it possible to develop a business, which subsequently has a beneficial effect on the level of development of the region. Allowing you to have your own products, while reducing the supply of goods from other regions, saving on transportation, which is reflected in the cost of goods for consumers. It is worth noting that before creating your own business, it is necessary to study the consumer market, which is more in demand among the population, and also note what direction requires development. After all, even hair salons, which have always been in demand, are now in abundance and entrepreneurs supplement them with makeup and manicure services to attract the majority of clients. A small business that does not have a fully thought-out economic plan may not only be unprofitable, but sometimes unprofitable, which sometimes leads to its liquidation, regardless of capital investments from the founder and banks.

In everyday life, every person, wherever he is, comes across a small business. Its directions are quite diverse:

trade pavilions and stalls; small independent departments for selling products located in large retail chains; various service salons; small eateries and much more. There are many examples that can be cited from past life that we encounter today. One can even say that any large enterprise that has any brand known in modern life began its production journey with a small business. Only some were luckier, and production went international, moving to corporations and manufacturing giants, while others remained where they started. You can use your preferences and hobbies. A favorite activity that will generate income is very actively integrated into real life. Previously, this type of activity also occurred, but was less in demand and was used more to satisfy one’s state of mind. For example:

embroidery with thread, beads and ribbons is used in art and to decorate clothes and accessories; knitting is in demand in all seasons - hooks and knitting needles allow you to insulate in winter and get light lace in the warm seasons of the year; baking lovers provide attention to various bakery products and confectionery masterpieces in the form of exquisite cakes and pastries; seamstresses will not be left idle, because people use their services not only to create individual models, but also to repair everyday clothes; artistic skills are used not only when painting portraits and painting interiors. Drawing is widely used in fabric painting and nail design; the creation of websites, advertising brochures, modeling and design are in demand in our modern world and are used not only to transfer graphic models into reality, but also to leave them on the Internet as advertising and design. On the one hand, choosing the direction of your commercial activity is easy. Just think about which activity you prefer:1) Gardening brings profit almost all year round, but this requires sufficient area to engage in this activity. In winter, you can grow seedlings, which are in demand in spring. Seeds cost a small amount, and subsequently, having grown several crops from seedlings and leaving seeds from them, the next seedling will bring net profit. Growing and selling fruits, berries and vegetables will allow you to earn money in the summer and autumn. With a large number of trees, shrubs and tubers, the grown crops can be sold to the market or to the store, and sufficient stocks stored during the winter have a high value, and, consequently, profit. 2) Seamstresses and craftswomen, with small equipment, will be able to get their first clients at home. Clothes repair, tailoring and restoration are constantly in demand. A large client base will provide work not only for the founder, but will also provide a workplace for a like-minded person with whom you can team up in one rented workshop and provide comprehensive services. 3) Seasonal sales of ice cream and soft drinks on the beaches are more in demand than in the city, and there is less competition. Also in the city you will need a trading place and a counter with a refrigerator, and on the beach you can sell small quantities from a thermal bag of goods that will be purchased in small quantities. Although this direction is seasonal, it provides income and allows you to save start-up capital for a larger business. Such profit can be used when changing your type of activity. This mainly applies to those who decided to use seasonal earnings to create start-up capital.

What you need to know before starting a small business

You should start your own business by deciding on its direction, which should not only generate income, but also be close in spirit. If you do something just for profit, then nothing will come of it.

How to plan a business from scratch

So, having chosen a direction, you should: 1) Decide on the capital that will be used to start your own business. Allocate a portion of the funds that should gradually be poured into the life of the enterprise for its development. You shouldn’t spend money on the proceeds from your activities; they may be insignificant, and at first there may be no profit at all, although the business will already be operating. You shouldn’t start with applying for a loan. A new business will not immediately make a profit, but the loan must be repaid regularly and it is better to use the loan when there is a clear formation of personal entrepreneurship with its future development and bringing at least a small but stable income; 2) Decide where the small business will be founded. After all, not every entrepreneur “opens” in his own city. When choosing an occupation that you like, it may be in abundance at your place of residence, but in a neighboring city - vice versa. Even shopping pavilions created in the private sector and in a certain deficit will bring more income than the same ones in a large shopping center; 3) You should also not act on a grand scale. A small investment in a small enterprise will allow you to gradually establish yourself in the market and, as you develop, expand your personal business.

How to open and register your own business

Of course, the main thing is to legitimize entrepreneurship. Registration in the tax system and obtaining permits will allow you to act completely legally, without fear of any fines or punishment for illegal business activities. Applying for loans for business development will also require the provision of registration documents. An enterprise that is founded and has already begun its activities will require attracting customers to sell its products. Many people know the expression “Advertising is the engine of trade.” Advertising a small production on a large scale using local media is not a very good solution. A large amount of customer attention can lead to production overload. High demand is good, but when there is a shortage of products, the consumer may not turn again and choose another supplier. Initially, brochures distributed among passers-by, informing friends about your business, and small text advertisements on a local Internet resource service will work well as advertising.

Organizing a successful small business

1. Grow your business yourself. Attracting various organizations specializing in establishing and promoting a business, attracting sellers (at a time when you can engage in trade yourself) will require additional costs.2. The proceeds should not be spent for other purposes. It is better to give up celebrating your success, and identify means for further development and increase in production.3. An established business that is in demand among consumers should be expanded by opening additional branches.

Having made the final decision to create your own business, it is worth remembering small rules that will help you succeed and remain the best leader for your subordinates. 1. You shouldn't take on everything at once. Performing certain actions every day to strengthen your little brainchild will have a much better impact on efficiency than trying to complete several tasks. The purchase of raw materials for production or finished products for sale cannot be combined with traveling to organizations on personal business or searching for new clients. Products may deteriorate during transit; it is better to put them into circulation at this time, rather than store them in a car or in a warehouse. 2. Try experimenting. Selling ice cream will attract more attention from customers if you offer soft drinks along the way. Even if you don’t have the funds for lemonade bottling equipment or a large refrigerated display case, you can offer bottled juices and water from an ordinary refrigerator. 3. Having a staff of employees, you shouldn’t be a harsh boss, whom they will be afraid of, and work without enthusiasm. It’s also not worth letting the work team in. Friendly and trusting relationships, within the limits of what is permitted, will bring pleasure not only to the founder, but also to the employees who will work as if they were working for themselves. 4. Both when starting and when developing a business, you should not listen to envious acquaintances and competitors about possible failures and large losses. Try, take risks (only small amounts) and everything will definitely work out.

Success stories of famous businessmen

Every product with a well-known brand name has its origins in a small business. Abroad: Boris Ostrobrod began his independent career, bringing swimsuits from Israel for sale in Russia with a small price markup. A modern product in demand, it eventually brought him to partners from China. Such success made it possible to establish and transform a small business into a large one under the Sela brand. Garlan Sanders His lack of education and advanced age did not prevent him from engaging in entrepreneurship. At the age of 60, having decided to open a car repair shop, a small canteen was equipped there to sell fried chicken with a special seasoning. The unusual taste and ease of consumption made it possible to create a restaurant, and subsequently a chain of bistros in America and far beyond its borders - KFC. Roy Raymond and a line of women's exquisite underwear - Victoria's Secret, price tags from Frank from the Woolworth store, Phil Knight and his coach created an alternative to expensive sneakers, maintaining the quality necessary for athletes under the Nike brand. Our compatriots, looking for more convenient options for providing shopping and consumer services have achieved no less success. Vugar Isaev and his “Snow Queen” is familiar to every Russian woman. The crisis of the late 90s crippled many businessmen, both domestic and foreign, bringing the strongest and most enterprising to a new economic level. Purchasing fur and leather pelts for almost next to nothing to sew and sell clothes for their Russian beauties, a special name was invented for the store, which is still used today. Later, the salon of leather and fur products was supplemented with accessories, some items from other well-known manufacturers, and the chain of stores expanded far beyond the capital. Boris Nuraliev, using his abilities in handling computers and software, he created “1C”, which greatly facilitated the work of accountants and everyone involved in the economy. And who knows, maybe the new occupation you have come up with will allow the future small business to become a large corporation with famous brand.

In a financial crisis, when the number of jobs is declining, but at the same time the consumer and service sectors remain in demand, ideas or even businesses from scratch occupy the minds of ordinary citizens.

The desire to find opportunities for additional income is an important reason for searching for activities without capital investments. The benefit of such a business can be considered a minimal amount of risks, and if a person believes that he is strong in some area, then this will serve as an additional guarantee of the success of the new endeavor.

Business from scratch - does it happen?

No, such a business does not exist. In any case, you will have to invest:

Education.
If there is no education, time.
And, in any case, great enthusiasm.

There is a point of view that all the proposed ideas for beginners are not a business, but a craft. But there are no other options with a zero start. If there is no money for hired workers, you have to be your own hired worker. And only with the growth of your business, your own skills, abilities and income, will it be possible to delegate some of your functions to someone else. Moreover, very often even “grown” small-scale businessmen are forced to create an adequate replacement for themselves over the years. This is the specificity of small business. Small business is a way of life. To dream that in a couple of years the gears will turn without any of your participation is at least naive.

This material contains proven ideas in which you can still find your niche. Think about what your highlight is among the masses of the same, and go ahead. Each of these ideas fits perfectly into the “low start” requirements.

Types of businesses you can start without large investments

We will present at least 100 ideas that allow... There is no clear division into separate groups, but for a better understanding of the field in which you can go, we will accept a conditional classification by type:

Services

Automotive business ideas

The best ideas in the car business include the following:

Earn money online

For women

Video review

This article from To Biz looks at the newest ideas of 2017, and the authors argue that these ideas are indeed promising, work, but have not yet become too competitive.

Production

The production sector includes a large number of different ideas, but you should be prepared that a certain amount of start-up capital will be required.

Creative ideas

Some business ideas may initially be results-oriented because they are creative and unusual.

Home business

You can also find ways to earn money while sitting at home. Most home ideas are related to the hand-made industry.

Ideas for 2017

Every year new types of business appear, designed to generate, albeit small, income and capable of meeting the needs of society.

Ideas in crisis

In the wake of the crisis, you should choose business ideas in areas that remain in demand even with the scarcity of potential clients.

Ideas for business in Moscow

It is difficult to surprise the metropolitan public, and the market is so saturated that ideas are required that are either not yet very developed or have competitive advantages.

Some examples of investments and payback periods for a business idea

The main thing that will concern everyone who decides to open their own business is the amount of investment and the payback period of the project.

Business idea	Investment amount	Skills	Payback period
Tutoring	———	Knowledge in a specific field, diploma	Depending on the number of students
Vending massage	1 chair 35 thousand rubles	Not required	1 person - 100 rubles, per day throughput 10 people = 1000 rubles. 30 thousand per month. Payback in three months
Mafia game or similar	Renting premises and organizing advertising (approximately 30,000)	Not required	Income per month 28,000, payback two months
Sewing clothes for pets	Buying fabric, 1 meter = 300-500 rubles	Sewing skills	One ready-made suit costs from 1500 to 2000. Payback period is a month
Home beauty salon	30,000 rubles	Knowledge of hairdressing	4-5 months

Opening your own business with minimal investment is real. The most important thing at the initial stage is to monitor the market situation, identify a niche area and draw up a business plan. Next you will need only persistence and desire to make a profit. You should not expect that the money will flow like a river; in the first months you will have to work hard.

For most hired workers, owning their own business is the only opportunity to achieve at least an average level of income. Surprisingly, the average person, who has no confidence in the future and receives a salary that is barely enough to buy food and clothing, considers entrepreneurial activity a dangerous and risky activity.

This stereotype is explained by the fact that few people who want to become entrepreneurs know how to open a small business and where to start. According to the generally accepted opinion, starting any enterprise requires certain skills, start-up capital and business connections. Therefore, someone chooses the difficult path - trying to get a consumer loan, rent an office, purchase expensive equipment and hire workers, while others, following a simple algorithm, think through the main steps before starting a business, minimize expenses and open their own business without unnecessary stress.

Psychological attitude

The most important step on the path to success is the formation of a special system of views and the right psychological attitude in an entrepreneur. When listing what you need to open a small business, first of all you need to mention dedication, perseverance, lack of fear of failure, and self-confidence. It is possible that, along with developing these qualities, the future businessman will have to struggle with internal barriers, including:

Inadequate assessment of the scale of financial investments - many people are sure that any enterprise requires millions of investments that pay off over the years;
Denial of one's own abilities - according to most ordinary people, only those who have talent from birth can become an entrepreneur;
Overestimation of the importance of the concept - it is believed that in the question of how to start a small business from scratch, an exceptionally brilliant idea is the key to success;
Fear of guaranteed failure and the belief that the entrepreneur will inevitably lose capital, work and personal property.

Also worth mentioning is the belief that all businessmen are greedy and dishonest, the belief that business or family connections are necessary, the denial of the usefulness of money and other common stereotypes. Since it is impossible to open a small business from scratch without overcoming them, the future entrepreneur must make some efforts to form the right worldview. You can get the support you need:

In communication with other successful businessmen;
When reading motivational literature and studying other educational materials;
At special trainings dedicated to the formation of personal qualities.

Idea selection

All successes must be based on meeting existing or creating new customer needs. Therefore, a novice entrepreneur should first of all understand what exactly his qualities and skills will be in demand by the target audience. To do this you need:

Think about your qualifications, hobbies, experience and any useful skills;
Determine which activities are perceived with the greatest enthusiasm;
Analyze your own needs, interview others and find;
Assess the possibility of multiple sales of the selected product or service;
Determine whether it is possible to start your own business without quitting your job.

To choose, you can also address the most pressing problems:

Anyone will always buy food;
Almost everyone gets sick sometimes and needs medication;
People (especially women) want to look beautiful and well-groomed;
Everyone, without exception, needs clothes and shoes;
Car enthusiasts regularly repair and maintain their cars;
Every home has household appliances and electronics that sometimes break down;
Most people strive to furnish and renovate their homes;
Everyone needs periodic rest.

Ideas for starting a small business can be divided into three main groups: selling goods, producing products or providing services. Any entrepreneur who doesn't know what to do should choose one of these directions.

Trade

Trade is the most accessible small business that can be opened without professional experience or special knowledge: unlike organizing the work of a factory or consulting company, in this case the key to the success of an entrepreneur is the presence of elementary logic, observation and common sense.

A significant disadvantage of this direction is the required amount of start-up capital: the costs of renovating the premises, purchasing commercial equipment and creating inventory represent a fairly significant amount. What you can open in the field of trade with relatively small investments:

Grocery store or fast food;
A store or department with shoes, clothing, accessories, jewelry;
A retail outlet with dishes, interior items, linen, household chemicals;
Pet goods store.

Provision of services

When choosing which business is best to open for little money, available options should first of all be sought in the service sector: an entrepreneur working in this direction does not need retail and warehouse space, machines and equipment, and in most cases, even an office. What will be of interest to the consumer:

Construction work, plumbing and electrical services;
Car maintenance and repair;
Repair of clothes, shoes, household appliances, furniture;
Services related to beauty and health (haircut, nail and hair extensions, manicure, makeup, home massage, solarium);
Organization of leisure and entertainment;
Training, education, advanced training;
Accounting and legal advice.

Production

Despite the demand for domestically produced products, impressive investments in the enterprise will be justified only with careful preparation - market research taking into account the influence of imports, determining the structure of consumer demand and developing a pricing policy. It is high costs that are the reason that many ideas and developments remain unrealized. However, in some cases you can choose which small business to open for an entrepreneur who does not have much capital:

Tailoring in the studio, making belts, bags and other accessories;
Production of paving slabs, colored crushed stone;
Production of cabinet, upholstered and frameless furniture;
Growing crops (onions, garlic, herbs, mushrooms);
Breeding animals and birds (rabbits, nutria, quails, geese).

Checking for demand

An entrepreneur considering which small business to open must ultimately weigh the ideas he chooses against his capabilities and narrow the list down to a few options. However, even if there is only one direction left, it must be tested for performance and the presence of consumer demand. How to do it? Methods depend on the preferences of the target audience:

The easiest way is to get acquainted with the statistics of queries in the chosen direction on popular search engines like Google or Yandex;
You can place offers for sale or provision of services on well-known message boards or on thematic forums;
Advertisements in the local press will be seen by those who do not use the Internet;
Placing advertisements in elevators and entrances, placing booklets in mailboxes are used when assessing the potential of a particular area or small city;
You can distribute business cards in places where representatives of the target audience gather;
The easiest way is to study the activities of potential competitors, assess their level of wealth and the success of their chosen strategy.

The number of reviews is used to judge whether... There are other methods for testing demand (sending out commercial offers, interviewing friends and passers-by), however, in this situation they are more likely to increase the average indicators.

Finding funds

It should be noted that a minimum start-up capital is needed in any case, since it is impossible to open a small business without money: entrepreneurial activity requires inevitable investments in advertising, payment for communications and transport services, purchase of stationery and a certain amount of office equipment. You can find the necessary funds in the following ways:

Apply for a bank loan for entrepreneurs at a reduced rate;
Borrow the missing amount from friends or relatives;
Attract a third-party investor;
Receive a subsidy from the Employment Center.

Business options

Many successful ones are well-known and have been tested many times in practice: an entrepreneur just needs to select the appropriate ones and adapt them to specific conditions, while not forgetting to create his own competitive advantages that attract the attention of consumers and significantly increase the chances of success of the enterprise.

Installation of suspended ceilings

Stretch ceilings invariably remain one of the most popular interior elements. Moreover, thanks to lower prices, these structures become available not only to wealthy people, but also to owners of rural houses, one-room and even communal apartments, and their installation brings income to many entrepreneurs.

When choosing which is the most profitable small business in a small town you can open with a capital of 75–90 thousand rubles, you should take into account that in this case the main expenses include the purchase of hand tools and advertising. As for income, with the cost of finished ceilings being 1200–1500 rubles/m², a team of two people finishes a two-room apartment in a day, earning 15–20 thousand rubles.

Car polishing

The paintwork of any car does not remain shiny for long - with intensive use or when storing the vehicle in an open parking lot, it quickly becomes dull and covered with small scratches. Therefore, car body polishing services may be in demand among car enthusiasts - a small business that can be opened in a small town even in your own garage, investing only 65–70 thousand rubles in equipment and materials.

The price of polishing is determined by its type and material: from protective for 3,000 rubles to restorative and two-component for 6–7 thousand rubles. With the cost of consumables being 100–1500 rubles, the entrepreneur’s income will be 2.5–5 thousand rubles from each client.

Makeup school

In order to skillfully highlight the advantages of her appearance and, if possible, hide her flaws, every woman needs to have some skills in applying makeup. Considering that few people know how to use cosmetics correctly, but almost all representatives of the fair sex are ready to learn, you can open a small business from scratch, the idea of which will be to conduct special courses, including teaching both the basics of the skill and professional techniques.

With an average cost of basic training of 5–6 thousand rubles and a price for courses for masters of 22–25 thousand rubles, the investment in opening a makeup school (about 200 thousand rubles, including the purchase of equipment, furniture and consumables) pays off in four to six months.

Holiday decorations with balloons

Bright, extraordinary, spectacularly decorated holidays usually leave people with the most positive impressions. To make the celebration memorable, organizers often use various figures, compositions and entire garlands of balloons as decorative elements: such a room decoration service is a service that can be opened without an office, warehouse or complex equipment with a capital of only 55–120 thousand rubles .

The cost of the service is determined by the complexity of the composition: from 300 rubles per meter of garland to 5,000 rubles for a balloon fireworks display. A team that arranges 2-3 holidays a day during the season will be able to earn up to 240 thousand rubles per month.

SEO and SMM promotion studio

Seven out of ten Internet users regularly spend time on social networks, and approximately half of the total number actively searches for information of interest to them in search engines. Therefore, an entrepreneur who wants to attract attention to his product or service should not ignore such a huge audience.

To open a small business at home to promote customer representation on social networks (SMM) and search engines (SEO), all you need to do is get a computer with Internet access and devote time to developing your own website. At the same time, the rest of the studio employees can work remotely for the first time.

The entrepreneur’s income in this case is determined by the volume and complexity of the work: customers pay an average of 40–60 thousand rubles for promotion in search engines, and from 8 to 40 thousand rubles per month for maintaining groups on social networks.

PC and laptop repair

Today, a computer or laptop is found in almost every home, but few users have the knowledge necessary to repair it. As for enterprises, the fleet of computer equipment here is measured in tens and hundreds of machines, the maintenance of which can only be done by highly qualified specialists.

When considering which small business is profitable for an entrepreneur to open, we can offer three options for organizing a computer service:

Repair of equipment at the customer’s home (minimal investment);
Repairs in your own workshop (investment of 150–220 thousand rubles);
Serving corporate clients.

The cost of services is determined by the tariff schedule: from system reinstallation for 500 rubles to data recovery for 6,000 rubles. Accordingly, each master is able to earn 55–70 thousand rubles per month for the enterprise.

Making donuts

Despite the high competition in the fast food market, novice entrepreneurs often pay attention to the sale of shawarma, hot dogs and popcorn, forgetting about such a popular product as donuts. Meanwhile, if you study how to open a small fast food business in Russia, you can get a profit comparable to the income from selling hamburgers. Donuts are usually sold in two ways:

At a stationary point, equipped with a mini-bakery for 85–90 thousand rubles and located in a shopping center or on the main street;
In a mobile kiosk, which can be bought ready-made along with equipment for 260–300 thousand rubles;
Considering that one serving of donuts costs 50–60 rubles, you can expect a daily income of 4–8 thousand rubles from a well-located outlet.

Production of sliding wardrobes

Consumers have long appreciated the convenience and attractive appearance of sliding wardrobes. In new houses, developers usually order them in bulk from furniture factories, but no one will reconfigure an entire production line to complete individual projects. Therefore, when considering how to open a small business with a capital of 25–40 thousand rubles and a minimum set of hand tools, you can pay attention to the manufacture of such furniture to order.

When organizing a workshop in your own garage or in a rented small room, cutting laminated chipboards, gluing edges and assembling door frames is entrusted to third-party companies. Even taking into account the cost of their services, an entrepreneur’s income from assembling and installing a standard cabinet will be 5–7.5 thousand rubles.

Video on the topic Video on the topic

Selling jewelry

“I want to open a small business, which direction is better to choose?” For girls, the answer to this question involves searching for the optimal combination of profitability and aesthetic components: the sale of costume jewelry and jewelry meets these requirements almost completely.

The purchase of equipment and goods will require an amount of 180–230 thousand rubles. With such capital, a store can be opened either in an “island” format on the territory of a shopping center, or in a separate room with an area of no more than 12–15 m².

With an average check of 400–500 rubles and serving only 10–12 customers per day, the retail outlet’s turnover will be 150 thousand rubles per month, which, taking into account the 150% markup, is equivalent to a net profit of 60–70 thousand rubles.

Breeding rabbits

Among other types of animal husbandry, rabbit breeding is distinguished by its loyal requirements for farm space and the size of the starting capital, as well as simple technology for raising, feeding and caring for animals. In addition, the business owner can count on government assistance in the form of grants and subsidies.

In the question of how to open a small business from scratch with minimal capital step by step, the idea of raising rabbits involves renting a small area for placing cages, purchasing animals and feed, organizing distribution channels: the total costs will not exceed 220–250 thousand rubles.

The first income will be received in a year, when the rabbits reach marketable weight and size: a herd of only 60 heads will bring the entrepreneur a profit of 350-370 thousand rubles from the sale of meat and 70-120 thousand rubles from the sale of skins.

Hi all! Today I intend to continue a series of conversations that are interesting to private entrepreneurs. We will look at where to start a small business and how to cut costs, because most startups close in the early stages precisely because the owner lacks funds. To ensure your business avoids this fate, learn what to look for.

What is small business and entrepreneurship in general?

Running a small business means that you will engage in private enterprise with small volumes of production. According to Russian legislation, this area includes enterprises with fewer than 100 employees and annual income or book value of less than 400 million rubles. If you have 16 or fewer people working for you, and your income does not reach 60 million rubles, your activity falls into the microbusiness sphere.

Such entrepreneurship is profitable due to the following nuances:

special tax regimes;
simplified accounting;
simple reporting procedure.

But can everyone start such an activity? Consider whether you have the necessary qualities required to be an entrepreneur. Running a small business means that you can cope with complex tasks:

you will be able to take initiatives in organizing production and providing services;
you will be able to combine all factors into a single whole and achieve results;
be able to analyze situations, develop strategic and tactical goals, and be responsible for success in achieving them;
you will take calculated risks for the sake of business development.

Entrepreneurial activities should be started by enterprising people who have a quick reaction to changes in the market situation. Having an education, although desirable, will not be a deciding factor. Professional economists are able to analyze and determine what information is needed to succeed. But many examples prove that a person without an initial education implemented plans, and those with a diploma failed. You will have time to study theory by combining it with practice, because the talent of an entrepreneur and the desire to develop are more important.

The Russian small business sector is also distinguished by its specifics: it is influenced by the corruption of officials and the lack of ethics in conducting business. The unstable economic situation leads to the fact that businessmen strive for short-term profit, fearing to make long-term plans. As a result, honesty and reliability remain rare qualities. And yet, if you want not only to open your own business, but also to succeed for years, work for your reputation. A credit of trust is no less necessary than a bank one!

Pros and cons of small business: what to be prepared for

Before opening a business and spending money on investments, assess the situation. Beginners are attracted by a number of nuances:

To get started, personal savings or money borrowed from relatives is enough. The government also provides assistance and you will apply for grants. And those who lack knowledge of economic theory will take courses for aspiring entrepreneurs at the city employment center.
Small firms quickly change business strategies and even direction. Thanks to the work format, you will reconsider the situation and make adjustments to changing marketing conditions, including exploring new ways of sales.
Financial control will reduce costs. Even small adjustments like saving electricity are easier to make than when running a large-scale company.
Because you interact more closely with clients than a corporate executive, you will sense sentiment and make adjustments as work progresses. As a result, consumer requests will be satisfied.
Mobility will play into your hands, because in the event of force majeure you will move your florist shop or mini-factory.

Despite the benefits, small business owners also complain about difficulties. The overwhelming number of failed startups do not overcome financial difficulties at the first stage. Also, starting a small business from scratch requires a careful approach to customer needs: an incorrect definition of a niche turns out to be disastrous, and a small capital is not able to cover expenses.

Disadvantages of small business

The disadvantages include the following:

Providing payment deferrals to customers will cause financial hardship.
Banks are reluctant to issue loans, because the business format is associated with increased risks.
Suppliers offer less favorable prices than when working with large companies. Since the purchases are not large in scale, you will not be able to insist on preferential rates.
You don’t have a large team to delegate tasks, which can waste time and effort. The formation stage, which requires devoting all resources for development, takes several years; The financial cushion should be enough for at least 6 months.
The cost of production of small enterprises is higher than that of corporations, which reduce the figure due to their scale. It will be more difficult to introduce innovations and purchase expensive equipment.

Small business founders also make the mistake of entering the market unprepared for challenges. According to international studies, 60% of beginners do not develop strategies in advance in case of the next economic crisis . If you are unable to influence the previous factors, then a deliberate approach to the matter is one of the available measures.

You will be able to cope with difficulties if you prepare a detailed business plan and work out the procedure for action in the event of force majeure.

Step-by-step plan from scratch: how to start your own business

Do you have ideas for starting a small business, but don't know how to implement them? Determine whether you are going to work in the field on your own (in this case, register an individual entrepreneur) or plan to attract partners (choose an LLC). Then you just need to adhere to the diagrams covering the stages of the process.

How to choose a niche for a small business

A beginner in the field of individual entrepreneurship will begin by assessing resources. This can be not only money, goods or premises, but also experience. For example, you work as a shoe retailer at a local bazaar and see that the owner of 12 points makes a profit of about 1 million rubles. To start trading, you have collected a small capital, but you think that your assets end there.

Where is the mistake? You don't take into account additional resources:

knowledge of retail sales technology;
knowledge of assortment and seasonality;
understanding of business laws:
experience in the field.

An objective assessment of opportunities will allow us to determine prospects. Do not choose to start a small business an area in which you are not familiar, because you will not be able to take into account the nuances. If you have an idea, but no practical skills, try yourself as an employee, and only later take on the implementation of your ideas.

How to analyze the market

Before making an investment, check whether there are prospects in the chosen field or whether the needs of buyers are met. Evaluate the work of competitors: you can use their services or go through a chain of stores, introducing yourself as a client. Then put everything you see on paper and evaluate the strengths and weaknesses of your competitors. By identifying which customer needs remain unsatisfied, you will find your niche.

In a simplified form, the stages of market analysis can be defined as follows:

establish the dynamics in the area and imagine the potential sales volume;
identify your main competitors, do an analysis on a number of points (assortment, prices, location of outlets, quality of service);
consider ways to sell the product and methods of promoting it on the market;
determine the level of already established prices, analyze the structure: what part is the markup, cost, marketing costs and profit;
think about whether the consumer is satisfied with the current situation;
determine the factors that force him to make his first and repeat purchases.

Finally, consider the prospects of a new player in the field to understand whether it is worth starting an activity.

How to write a business plan

Although most corporations resort to drawing up a detailed plan, it is also necessary for those who are wondering how to start a small business from scratch. Even if you don't need investors, clear guidance will help avoid surprises in the future. And entrepreneurs applying for loans will present a picture of the phased development of the business.

You can draw up a business plan on your own by downloading samples for free: you will estimate your upcoming income, expenses, and level of investment. Also, analyze your existing resources, and you will be able to reduce expenses.

What mistakes do entrepreneurs make at this stage? They start saving the investor money before the need arises. As a result, they do not have enough money to hire the necessary staff or purchase equipment.

Decide in advance for whom you are drawing up a business plan: draw up the “for yourself” option in any form, but the document for investors implies that you adhere to established templates.

Finding money for a small business

Since the work format does not imply a large scale at the start, you will get by with personal savings or borrow money from relatives and friends. Also keep an eye on government support programs and apply for grants on time.

Funds can be obtained through the following options:

Crowdfunding is suitable for those who have proposed an original idea.
Venture funds make investments in innovative projects even with high risks.
Banking organizations are reluctant to issue loans to private entrepreneurs due to the large number of startups that are closing. But a detailed business plan will dispel doubts about your competence.

Even if you don't get funds from one source, you can reduce the amount of loan you need from the bank.

How to register activities

You can register a business as an individual entrepreneur or LLC, which determines the form of activity. When registering as an individual entrepreneur, you will be pleased with the ease of registration, since a minimum of documents and payment of a fee are sufficient. You are free to use online registration services, which will take no more than 20 minutes.

To complete the documents yourself, follow the procedure:

Complete the registration application.
Decide on the type of activity, since you will need to indicate its code (OKVED). Don’t make the mistake of specifying “spare” items, otherwise problems will arise with fiscal services in the future.
Indicate the taxation system, and the individual entrepreneur provides the possibility of simplified options. The simplified tax system implies that you will pay 6% of income or 15% of the difference between income and expenses.
Pay the state duty (800 rubles) to the Sberbank cash desk. You will attach the receipt to the registration application and notification of the transition to the simplified tax system, and then provide this package to the tax authorities. The application will be reviewed within 5 days, after which you will be given the relevant documents: certificates of registration and registration, an extract from the state register.
The information will be transferred to the pension fund, where you will be registered. The documents will be delivered to you by mail within a month.
Contact the Rosstat office to obtain a statistics code.

It remains to be decided whether you are going to use a seal: although it is not necessary to have one, having an imprint on documents will increase the trust of partners and clients. Manufacturing will take several days, and the shape can be arbitrary.

It is also worth opening a bank account to accept payments online. A personal account cannot be used for business activities. If you plan to accept payments in cash, get a cash register and register with the tax service.

In some cases, you should send notice of an activity when you actually undertake it.

Start of implementation of plans and rapid testing

When thinking about how to start a small business from scratch, include testing in your plans. “Battle test” means that you will conduct an advertising campaign and find out in practice whether consumers will want to buy the product. This will allow you to avoid a common mistake of beginning entrepreneurs: they delay the opening, trying to bring the plan to perfection. But testing the idea in the early stages will provide an opportunity to make timely adjustments. Thanks to it, you will reduce costs in case the business “doesn’t take off.” Prepare for another situation: demand will be high, and you will have to work hard so as not to lose customers.

If the specifics of the product allow, follow the kickstarter model: the product is sold before it is released. To do this, post your landing page online so that users can see product photos and descriptions. Since they don't know if the product is in stock, they will place orders.

Choose a familiar field of activity and look for partners

For posting, you will need to select material that includes a video, product photo and text description. It’s not worth ordering a landing page from an agency, since the services will cost 100 thousand rubles, and at the testing stage the amount is unjustified. You can hire a freelancer for 5-20 thousand rubles. depending on the volume and complexity of the work. If you want to save, pay 750 rubles. for access and make a page yourself on Tilda.

How to run advertising

Don’t be scattered between sites, but focus on the one where your potential buyers are represented. Having determined the demand for the product, make adjustments to your plans.

Do you offer exclusive jewelry or hand-made goods? Place advertisements at the Crafts Fair.

Starting a small business: how to select personnel

If at first you cope with tasks on your own, then expanding your activities cannot be done without employees. Even a small store or salon needs staff, but how to select professionals without HR experience? Forbes tips will help you:

Look for an employee who can devote himself to the project. The desire to find a position with a higher salary is understandable, but constantly changing jobs will not be a plus. True, the loyalty of the pros must be earned, so think over a motivation system.
Don't evaluate candidates based solely on their resume and work experience. Learning and analytical skills matter more than impressive past accomplishments.
Choose applicants who plan to develop and learn new skills. The lack of experience can be compensated for by zeal, while an experienced but indifferent employee will not change for the better.
A key role in hiring subordinates is the ability to determine how well an applicant meets the requirements. To cope with the task, do not try to create a psychological profile of the employee by asking questions like “Which animal do you associate yourself with?” or “Do you prefer to return from work along a familiar road or are you looking for new routes?” Your goal is to find out what skills the employee has required for the position. Speak to the point!
When advertising, be clear about the responsibilities and skills required. The advice may seem banal, but practice shows that not everyone has learned this simple rule.
During the interview, arrange testing, because applicants give false information in their resumes. The tasks don't have to be complicated: you can ask the potential seller to give a brief presentation of the product.

Follow these rules, and finding employees will not be difficult. Just don’t forget that a worthy candidate will not agree to a pittance salary!

Rules for doing small business: analyzing the results

By testing a business idea “in the field,” you will get an idea of the viability of the idea and make adjustments if necessary. Please pay attention to the following nuances:

Collecting feedback from customers will allow you to adjust the company's policy, so ask customers to leave reviews and conduct surveys.
Calculate the amount received after the first sales, think about ways to increase them.
Don't stop advertising your product or service. Marketing promotion is an ongoing process that ensures expansion of activities. But the costs for it must be considered, so compare the results of advertising on different platforms.

The key to success in work remains a systematic approach, expansion of theoretical knowledge and combination of it with practice. I advise you to watch a video with a story from a practicing entrepreneur, because it will be useful for beginners. Find out where it is advisable to start a business, and ask questions in the comments.

Active promotion and scaling

Small business turned out to be successful, and the processes do not require your constant presence? Take on scaling, because when starting from scratch, rapid growth is important. Investors are also interested in expanding the enterprise, so aim for a 5% increase in scale per week. A difficult economic situation will be a plus if competitors focus on maintaining their positions.

Think big: building ironclad discipline within a company is not as important as making connections at a long-distance small business conference. The reluctance to leave the team unattended is understandable, but learn to prioritize.

In the field of small production, it is important to analyze performance results and identify weaknesses

Regardless of whether you are going to open a chain of clothing stores or auto repair shops, the main problem remains money. Create a development plan that will impress investors and think through the stages of implementation. A clear idea of the upcoming steps will not only allow you to attract sources of funding, but also assess the realistic expectations.

Drawing up a development plan also helps to identify the so-called “bottlenecks”. After all, the possibilities of small business are limited by weak points in its organization. For example, to increase sales you need to expand your department, but it is difficult for you to find reliable employees. This means that you will have to refine your hiring techniques, reconsider terms and improve motivation.

Top ideas for production in small businesses

Activities in the field of small production cannot be called simple, but the prospects of the direction smooth out the shortcomings. Among the profitable options are the following:

Furniture production will become a family affair, because men will take on the production of frames, and women will take on the sewing of fabric parts. You can start with hand-made goods, and then purchase band sawing, drying and woodworking equipment. Sales of goods are carried out through cooperation with existing stores or sales to the population at their own points.
If you live in a village, start producing organic products. Having formed a base, you will supply homemade products, but think about delivery routes in advance. The main problem in rural areas remains the transportation of goods to markets.
The production and sale of ice cream will bring benefits in a large city with high incomes among the population. Don't rely on traditional popsicles, but on complex recipes with fancy ingredients. The product will not be cheap, so consider an advertising campaign aimed at young people and teenagers. Also prepare for seasonal sales downturns.
If you start producing crab sticks, the cost of 1 kg will be 60 rubles, and you can sell it for 100 rubles. To purchase equipment, rent workshops, prepare documents and hire employees, you will need 5 million rubles.
As the sector of children's educational games develops, you will find your niche. Keep in mind that with a single type of product the consumer will not notice you, and present at least 10 options.

Choose an idea that suits your conditions, analyze the market and get down to business!

Common mistakes when starting a small business

Have you worked as an employee, studied the field and are ready to open a small business? It will be easier to succeed if you avoid common beginner mistakes:

Choosing the right partner for a small business is the key to success. But friendly relations interfere with building the boundaries necessary in business communication. Experts advise not to involve relatives or close friends to avoid conflicts.
The desire to reduce risks is understandable, but do not cling to apparent stability. If the business does not develop, the period of stagnation will be replaced by decline. Gather your courage and start looking for investors or partners to help you move forward.
When you are passionate about an idea, it is difficult to evaluate the result. You're probably confident that your product is the best on the market, but don't lose your ability to be objective. To succeed, you need to find a balance between the desire to bring the product to perfection and the confidence that it is already good.
Saving on a marketing campaign is disastrous for beginners. Whether we are talking about a beauty salon, whose clientele will be fashionable girls, or about a mobile car service, the basis for success is competent advertising.
Both beginners and veterans of small businesses have a desire to do everything on their own. But the sooner you learn to distribute responsibilities between subordinates, the more efficiently things will go. Do you decide to personally develop a logo, do accounting, or compose text for a landing page? Practice shows that in most cases such an idea cannot be called successful.

Corrections made in time will allow you to avoid mistakes, and all mistakes are fraught with financial losses.

Conclusion

Small businesses face difficulties such as lack of funding, corrupt officials, and the need to compete with large corporations. But with a balanced approach, it’s possible to carve out your own niche. Do a market analysis, soberly assess the prospects and start a small business!