Micro business

Micro-businesses, also known as nano-enterprises, are rapidly becoming the preferred small business option for many entrepreneurs and first time business owners. Unlike traditional "C" or "S" companies, micro-businesses have very limited employee strength and are limited in their ability to acquire and develop new customers. Small businesses are usually privately owned firms, partnerships, or sole owners that have significantly less employees and/or lower revenue than a large corporation or business. The following article provides insight into the development of micro-businesses and the associated pros and cons.

It's important to note that despite the rapid growth of micro-businesses, they aren't quite as common as their larger cousins. This is due to some challenges associated with micro-businesses. Specifically, these difficulties include: high startup costs, lower operating profits due to smaller overhead and business expenses, lower sales volumes, and limited access to needed resources such as human capital and training. In addition, many micro-businesses don't have the benefit of the existing network of relationships and vendors they will inherit once they establish themselves. As a result, many micro-businesses fail in their first year.

Many people who want to start a micro-business often want to start with a simpler business model. These entrepreneurs tend to lean towards the "get rich quick" mindset. Micro-businesses often lack the resources to invest in advertising, get established customer bases, and develop good customer service strategies. Consequently, these entrepreneurs tend to bypass areas like marketing, distribution, and customer service until they have enough capital to take on these other areas. As a result, micro-businesses can fail much more quickly than larger businesses. Additionally, many micro-businesses lack the expertise to run a complex operation, especially one that requires significant resources from a single owner/employee.

On the flip side, there are also many advantages associated with owning your own micro-business. Typically, the cost of starting one is much less than opening a traditional brick-and-mortar retail location. As a result, many micro-businesses can operate at a fraction of the cost of most traditional large businesses. In addition, since there are fewer start-up costs, micro-businesses typically find that their profit margins are substantially higher than those of large companies. Additionally, many micro-businesses often have access to specialized tools, equipment, and expertise that a large corporation may not possess.

Another advantage associated with micro-businesses is the fact that they are usually less expensive to set up than large businesses. As a result, many small businesses are able to provide services or products that other large corporations are unable to afford. The final advantage relates to the potential for growth. Because micro-businesses have fewer employees, they tend to have higher employee turnover.

Perhaps one of the biggest drawbacks associated with micro-businesses relates to the amount of overhead associated with operating such a business. Since micro-businesses generally operate on a tight budget, overhead costs are often higher than normal. Additionally, some micro-businesses do not provide onsite parking because they do not believe that it is a necessity. In addition, because there are fewer customers associated with micro-businesses, the need for advertising is higher than that of a traditional large business.

Many micro businesses also choose to use their own resources as well as rent out equipment and property. Because micro-businesses are usually only a few employees, operating costs are often lower. However, because there are fewer employees, the profits are typically lower. Since micro-businesses are usually seasonal and result in lower turnover, it may be more difficult to find quality employees to run your micro-business.

As stated above, there are approximately 2 million micro-businesses in the United States. Many of these businesses are considered hobbies that individuals can turn into money making ventures. However, for those who have an entrepreneurial mind, micro-businesses are a great way to achieve financial freedom. Although the amount of time and resources for managing a microbusiness may be limited, these two aspects are definitely outweighed by the potential to enjoy significant wealth in a very short period of time.