Business Basics
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Low-cost, low-risk business ventures
A low-cost business venture uses your existing equipment and facilities. Thus if you have carpentry tools and equipment, you could start a home repair service. If you have a pickup truck, you could start a cleanup and hauling service. If you have a computer, you could start a business using the computer programs you already own.You would operate the business out of a home office. You wouldn't have any workers, except perhaps your own family.
You would rent any expensive equipment or tools you need for a particular job. You would have your customer pay for any expensive materials before you start the job.
A low-risk business venture:
- Doesn't require a lot of cash to start or operate
- Doesn't violate any laws
- Isn't likely to annoy your neighbors
- Isn't likely to create envy or resentment
- Isn't likely to harm people or the environment
- Isn't likely to have disputes with customers or suppliers
- Isn't subject to onerous governmental regulations
- Uses your existing experience, knowledge, and skills
But you should keep in mind that there are always risks involved in business operations. Some of these are discussed under the Risks of owning a business venture topic on another Business Basics page.
However, it isn't always possible to determine all the risks involved in a particular business venture.
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Larger, more complex business ventures
This type of business venture has one or more of the following features:
- Might annoy your neighbors
- Might be subject to disputes with customers or suppliers
- Might be subject to onerous governmental regulations
- Might create envy or resentment
- Might harm people or the environment
- Might unintentionally violate some laws
- Requires a lot of cash to start or operate
- Requires permanent employees
- Requires the purchase of expensive tools or equipment
- Requires the purchase or rental of an office, storage facility, or production facility
- Requires you to gain new experience, knowledge, or skills
This type of business might produce a larger profit than a simpler one. Regardless, my advice is don't try starting this type of business as your first venture.
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Do you have what it takes?
You need certain take-charge attitudes and skills to start and run a business venture. By this, I mean the kind of abilities that a boss must possess. These are such things as being a self-starter, taking responsibility for your own success or failure, and getting the tough jobs done.
If you lack most of the take-charge skills needed for your proposed business venture, my advice is:
- Either develop the take-charge skills first
- Or don't try to start your own business venture
You can use the information on the Magic Success Secrets section to help develop any take-charge attitudes and skills needed.
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Making the decision
I recommend only the low-cost, low-risk type of business venture. After you have achieved success with this simpler type, you may want to consider larger, more complex business ventures.
Before you decide to start your own business venture you should already have (or be able to obtain) the cash, knowledge, and skills needed to start it.
You may wish to consider other factors before making a final decision. Therefore, I recommend that you read (or reread) all the pages in this Business Basics section.
To help you decide about starting a business venture, I recommend using the Make Logical Decisions page from another section.
GOOD LUCK WITH YOUR DECISION.
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Final thoughts
I hope this Business Basics page has helped you make a sound decision about whether to start you own business.If you have decided to start your own business venture, I recommend using the Magic Success Secrets section, as needed.
If you have decided not to start your own business venture now, you may want to try the following other ways to make or save money:
Good luck on your decision.
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