When you say a small business, what do you mean? What differentiates them from big businesses? After all, they are mostly doing the same thing, solving customer needs.
The differences, we consider, are in lines of capital invested, market size, and revenue generated. Some businesses are scalable, which can turn into big businesses later on and some are not scalable. Your neighborhood mom-and-pop general store is one of many small businesses, which is unlikely to be scaled up.
However, if run properly, most of the small businesses can turn up a nice profit. And if your business idea and implementation are viable on a large scale, you can scale up and turn it into a large-scale business. After all, most of today’s big businesses started as small businesses.
Types of Small Businesses
There are several types of small businesses, some of which are fairly traditional and some are new age. For example, twenty years back, there were no cryptocurrencies available and now there are so many cryptocurrency startups. So these are what we can say new-age businesses. On the other hand, general stores, restaurants existed many many years back. And they are still relevant today.
These are more traditional kinds of businesses.
1. Online Small Business
There are businesses, which mainly exist and work over the internet. Generally, these are service-based and require little capital. Web development firms with few employees, digital design firms to social media specialist firms, and niche e-commerce stores, these small businesses are thriving for a long time. They are easy to start and if you can provide satisfactory service, you will easily get a number of customers in no time.
2. Offline Small Business
- Service Business
Small businesses, which operate in the service sector require a little bit of capital and expert(s) for service delivery. Local mechanics, tailor to small courier service, these businesses get customers based on repeat purchase and word of mouth.
- Product Business
On the other hand, you can manufacture a unique product in a small factory setting and sell them to customers in retail shops or via online channels. Product businesses are sometimes a little bit capital intensive. But there are low capital options like handmade chocolates, souvenirs, and handmade pickles business.
- Brick and Mortar Store
Setting up a traditional brick-and-mortar store is another low-risk option. Truth be told, in a new developing neighborhood, setting up a small general store or boutique clothing store works wonders.
3. Small Business Marketing Strategy
Small businesses operate with little or low marketing budgets. They need to rely on repeat purchases for generating substantial revenue. That’s why customer relationship plays a big part in small businesses. Adding personalized notes, follow-ups and feedbacks go a long way in retaining customers.
Moreover, opting for targeted advertising and periodical reminders are fruitful and cost-effective ways of reaching your customers.
Lastly, small businesses thrive on relationships. The more personal experience your front-end employees will deliver, the more engaged your customer will be.