When most people think of small business, they instantly think of the shops and stores in their local community. However, there is a much more important segment to consider. This is the single person home-based small business. Why is this segment so important? Anybody can start a home-based business and scale it to generate recurring cash flows. One of the most compelling mediums for this brand of home-based business is the internet. By building a web-based small business, it can allow you to leverage technology as an accelerator. This will help you create a unique product or service for your customers.
Small Business Cost Advantage
One of the most important advantages of a web-based small business is the low cost of doing business. Web hosting plans can be acquired for very reasonable amounts. Open source software exists that can satisfy most small business needs for an extremely low cost. The web allows you to reach millions upon millions of people simultaneously. Naturally, you will need to create a compelling product or service to market but once that has been built, the web offers a highly compelling medium for connecting you with the marketplace.
Small Business Discipline
The most unusual thing about the marketplace of ideas is that nobody can predict what will become the “next big thing.” Many people assume that their idea will catch on big very quickly, borrow money to invest in their new idea, discover something that they had not anticipated, and proceed to lose all of the money that had been borrowed. In response to this, some people begin to seek “get rich quick” schemes that promise fast wealth to help them repay their outstanding debts. Inevitably, the “get rich quick” idea fails to deliver on its escalated promises and the would-be entrepreneur is now mired in a mountain of debt. This unfortunate cycle repeats itself for all too many people each and every year. However, this unfortunate chain of events does not need to occur.
By ‘boot-strapping’ new ideas off the ground as small businesses that run with extremely low costs, it gives entrepreneurs the opportunity to test out new ideas in the marketplace before making large investments. The importance of this strategy is that it allows you the freedom to fail without bankrupting your financial future. By failing while the cost is low, it provides crucial insights that pave the road to future success. Thus, the true power of a home-based business is that it provides a laboratory for entrepreneurs to test their ideas and learn the key skills of building and running a small business.
Tinker and Pivot
In this way, you can use a home-based business to ‘tinker’ with new ideas and business models. It is possible that some of these ideas will fail or need significant revision before they meet with success. This process of ‘tinkering and pivoting’ or ‘trial and error’ is the method by which the marketplace generates new and innovative businesses. Do not be discouraged by roadblocks, stumbling points, mistakes, or outright failure.
There is a popular statement that states anything that does not kill you makes you stronger. This sentiment is a very important part of the mindset of entrepreneurs. It demonstrates a willingness to learn from life’s experiences and apply the knowledge gained to build the foundation for future success. The key in all of this is to learn from every experience in your life, and ensure that failure occurs on a small enough scale to be educational, instead of catastrophic.
The small, home-based business that you create may end up propelling you to more prosperity than you had ever imagined. The only way that you can find out is to start building a business and learn the fundamentals of success. While you are climbing the ladder of success, do not fear failure.
Learn and understand the fundamental principals of success. Once those principals are put into practice, there is no telling where the future will take you.