A small business can be set up as an individual or group but either requires passion to spark an interest in building a business.
Everyday businesses are started by a simple Idea that’s acted up on by an individual or a group with a desire to improve their lives and hopefully make more money than a 9 to 5 job. Thousands of businesses start as a mom and pop shop and over time grow into large corporations throughout America and the world.
Many a small business are operated for years by the owners due to their finances not allowing the hiring of employees. While some small businesses run on a skeleton crew a larger business could have thousands of employees, depending on the size and stability of the operation. Hundreds of businesses in America and around the world begin by a single person acting on an Idea or a dream to build something great.
A good Idea and a knowledge of business is beneficial in starting and running your business, it’ll also aid you in focusing on your long-term goals. But even an idea, a strong background or years of experience in no way guarantees success in business.
A basic or specialized business course could be beneficial and help increase your chances of success in the business world. “After all” we start a business with the intention of being viable for a long time but for any reason you have doubt in yourself or your abilities consider attending a good management training course for a better understanding of what you’re getting into.
Some companies have been in existence for a hundred years or more and they remain viable by staying on top of changes in the industry yet creating thousands of jobs as they grow. One aspect of their business is time management utilization to stay on top. The company may have their employees take some type of time management course to cut or eliminate wasted hours.
Everyday there’s hundreds if not thousands of business start up’s in the service, food, health, retail and manufacturing sector and many struggle in their infancy, while some fail others may never see real profits for years. Some make enough money to merely sustain themselves until they become established if ever.
Well established businesses run properly make bigger profits that could range in the millions, plus they hire large numbers of employees at one time where a small business has to be vigilant and more frugal. Group hiring’s are rare occasions but due to demand, they may be forced to increase employees to meet production.
Because of size and stability large businesses have the upper hand when bidding on Government contracts. Small shops can’t compete so they wait for an opportunity to bid on smaller portions of the same Government contract as a sub contractor for the larger business. Finances and building capacities make it difficult for a small business to qualify for large Government contracts so they have to settle.
Small business in America with 500 employees or less are considered the backbone of the American economy. A number of businesses with 25 or fewer employees contribute more to employment and production than most large business.
Business Diversity throughout the world is monstrous.
Having businesses throughout the world producing large varieties of product twenty-four hours a day seven days a week helps keep prices low for the consumer. Every product made originates from some sort of raw material processed throughout the world. Products range from metal, plastic, paper, meat, milk, electronics and many more and these products are used in business or consumed in a home daily. All are produced and sold by some type of business whether it be a large business complex or a small mom and pop shop.
Research shows that small businesses represent 99.6 percent of all firms. They manufacture more than half of the gross domestic product, and are responsible for 60 to 80 percent of the jobs created. There’s approximately 24,000,000 businesses in the U.S. and smaller businesses are responsible for employing many employees across the country.
Businesses with less than 500 employees are considered a small business and as an owner there’s a heavy load to carry for the privilege of producing products in the US. There are those who think, “small business owners”, are making loads of money, but this is far from the truth in most cases.
Regulations placed on the American small business owner by the US Government hamper’s growth, stalls progress, and makes it difficult to make a profit. I can attest to this based on my previous ownership of a small business.
Being a past small business owner I understand the perils of building a business.
After forty plus combined years in business and plant management in metal fabrication and the manufacturing Industry I’ve faced the difficulties most small business owners encounter. I started in mechanical engineering before moving on to the manufacturing floor where I worked my way up from helper to a machine operator in the metal fabrication business.
My goal was learning to set up and operate any and all machines used in the fabrication business. After mastering the fabrication machinery I concentrated my efforts on the management side. Next was procedures in production process and quoting of different types of metal jobs for the shop floor. My dedication and desire to learn, moved me into a supervisor position where I began to dig deeper into the core of manufacturing and production cost involved in producing a metal part.
When I became Involved in purchasing materials and production labor cost the manufacturing puzzle begin to come together. With my newfound knowledge of business I decided to start a metal fabrication shop.
I began with three hundred dollars and built small jobs for cash in my garage before moving to a larger building. As the business grew I decided to specialize in close tolerance stainless steel and aluminum products. Sixteen years later the business had grown from a job shop into a manufacturer of food packaging machinery.
During the growth process we added a sales and engineering department to our manufacturing and expanded to more than twenty-five shop employees. Anyone thinking of starting this way must be prepared to spend a lot of time and hard work. You’ll also need lots of patients, in order to reach your goals and build your dream business.
I sold in 1997 and went to work as plant management with a pressure washing manufacturing business. The business employed eighty plus employees at the time. They needed to improve their manufacturing process to cut cost and save money. We had to make some drastic changes in the production process and started by placing competent personnel in positions of responsibility allowing cuts in overhead cost.
Within 6 months we cut the workforce from 84 to 34 employees while increasing production by 1.5 million per year. This was accomplished by utilizing floor space, adjusting wages and changing work flow procedures.
Starting a small business is difficult so consider a few things before beginning.
The most important asset required when starting your small business is a desire and a passion for the endeavor you’re beginning to launch. This will help in making your dream a success.
You must be willing to dedicate lots of time and be prepared for hard work in order to accomplish your dream. You need a clear direction in mind so you don’t wonder off the path. You need a business plan for your financing or a credit line to cover any unexpected expenses. Collateral may be required to cover any borrowed money.
Before starting you need to look for a location with sufficient traffic flow and ample parking, check into permits that might be required for the business. Utilities and power source’s are also important, and lastly ways to supply the business with merchandise.
Check with an insurance agent for advice on which type of coverage you need for the business. Contact vendors for any products needed for the business and arrange terms in order to determine the cost to start and operate the business.
If you have the money to begin your venture ; Great ! If not use your business plan to obtain finances needed for the business. Depending on your choice of business and your financial genius, you may want to get the advise of a financial Guru. Keep in mine this is only an outline of things you need to start-up a business. There may be some points I’ve missed so you might need to add some items.
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