When considering business ideas, the following must be taken into account:
- Micro- and macro-economic factors (i.e. the local and national economies)
- Individual experience in both business and specific industries
- Resources available: Time, money, family support, experts, and personnel will/desire
- Target market/client niche and product/service fit into that niche
Below is a short list of business ideas that may appeal. This list is obviously limited and will be updated on an ongoing basis. Several of these ideas may require formal education or certification; often these classes are offered at local community colleges for low cost.
Some Business Ideas
- College Adjunct Teacher (may require a Masters degree)
- Grade School Substitute Teacher (College Degree required)
- Health Care - In Home Companion (Non medical)
- Certified Nursing Assistant (CNA)
- Business Consultant
- Career Coach
- Home Value Appraiser
- Financial Planner/Adviser
- Pet Groomer/Sitter/Walker
- Computer Consultant (In home service)
- Web Site Developer
- Errand runner for time-stressed clients
- Livery Service (taxi, limousine)
- Delivery Person - Messenger Service
- Photographer
- Day Care Provider
- Personal Trainer
- Massage Therapist
- Handyman – Home repair and improvemen
Business Models
Selecting
a business model typically involves one of the following 5 examples and
characteristics. Some may involve a
combination or variation of these, but upon initiation, these models may be
appropriate.
- Home-based
- eBay
- e-Commerce
- Brick and Mortar
- Franchise
The following table provides descriptions, examples, and positive and negative aspects of each.
|
Model Type |
Characteristics |
Advantages |
Drawbacks |
Examples |
|
Home-based |
Educated (degree or
certification), no inventory, single employee |
Lower cost and risk, scalable,
full or part time option |
City zoning codes, normal home
distractions, strangers in home |
Massage therapist, Crafting, Consulting
|
|
e-Commerce |
Product or service sold through
web site to customers, single employee, home-based. |
Lower cost and risk, full or part
time option, scalable, huge potential customer base |
Shipping and inventory mgmt,
driving traffic to the website |
Unlimited products and services
available |
|
eBay |
Similar to and sub-category of
e-Commerce, but large enough to rate its own category. |
Lower cost and risk than
e-Commerce, many tools (PayPal) available, existing customer base |
Competition from existing sellers,
shipping and inventory mgmt |
|
|
Brick and Mortar |
Trade school or work experience,
inventory, dedicated facility outside of home for business |
Customer and community contact,
marketing with physical presence, can work with e-Options |
Higher startup and ongoing costs
(rent, purchase), staffing, inventory if required |
Retail, wholesale, manufacturing,
service, trades (plumbing, carpentry) |
|
Franchise |
Use of an additional location to a
proven company model |
Lower risk than own brick and
mortar, support from corporate entity, established brand |
Upfront franchise fees, corporate
(franchisor) guidelines, profits often split with franchisor |
McDonalds, UPS Store, Mail Boxes,
Etc., ReMax realtors |
Other Business Model examples:
Product Licensing – where an idea or
product is licensed to another company to produce and market the product. Examples include sports team logos/mascots or cartoon characters licensed to t-shirt companies or lunchbox manufacturers.
Multi-Level Marketing - A model where goods
or services are sold via a pyramid structure, with distributors on the top
supplying others lower down the chain in exchange for commissions. Amway is a classic example of a multi-level marketing organization.
|
Legal
Structure |
Description |
Advantages |
Disadvantages |
|
Sole Proprietorship |
Type
of business entity which legally has no separate existence from its owner |
-Easiest
and least costly -
Owner has total control over business decisions -
Minimal legal cost |
-
Owner can be held responsible for any debts and obligations of business -
Owner deals with all decisions -
Limited investor interest |
|
Partnership |
Type
of business entity in which partners (owners) share with each other the profits
or losses of the business undertaking in which all have invested |
|
|
|
General Partnership |
-
Similar to a sole proprietorship but with multiple owners. -
Not a separate legal entity from its owners. |
-
Administrative costs are generally low -
Relatively few regulatory requirements -
Owner taxed once on personal tax return -
Shared expertise and experience |
-
Owner(s) personally liable for actions of business -
Business acts of one partner affects all partners -
partners may have differing visions or goals |
|
Limited Liability
Partnership |
Similar
to a general partnership but with a separate classification of partners |
-
Owner taxed once on personal tax return -
Liability can be limited |
-
More complex administrative and filing requirements than general partnership -
General partners still have personal liability |
|
Corporation |
a
legal entity or structure created under the authority of a state's laws,
consisting of a person or group of persons who become shareholders |
-
Limited liability protection for the owners -Corporate
tax treatment -Attractive
to investors -Perpetual
existence |
-
Multiple fees to incorporate -
Paperwork (reports, tax returns) -
Dissolution can be difficult -
Disclosure of officers -
Tax consequences (double tax if c-corp) |
|
C-Corporation |
-Legal
form of doing business that creates a separate legal entity from the
individual owners. -
Legal entity can act and do business on its own as an individual would do. |
-
Shareholders are not personally liable -
Easy structure to raise capital -
Company does not cease to exist upon owner(s) death |
-
Owner(s) face possible double taxation (individual, corporate) -
Higher administrative costs to setup and run -
Regulatory requirements greater than other structures |
|
S-Corporation |
-
Type of corporate legal form that is taxed like a sole proprietorship. -
Subject to certain legal criteria such as maximum number of shareholders |
-
Owner(s) subject to single tax -
Shareholders not personally liable |
-
Higher administrative costs to setup than sole proprietorships, partnerships -
More regulations than sole proprietorships, partnerships -
Limitations on owner(s) (e.g. must be US citizens) |
Business Structures – Snapshot view
|
|
Sole Proprietorship |
General Partnership |
Limited Partnership |
C-Corp |
S-Corp |
Limited Liability Company |
|
Taxes |
Pass-through
(to personal) |
Pass-through
(to personal) |
Pass-through
(to personal) |
|
Pass-through
(to personal) |
Pass-through
(to personal) |
|
Liability |
Full |
Full |
Full
for general, limited for limited partners |
Limited |
Limited |
Limited |
|
Admin
Costs |
Minimal |
Minimal |
Moderate |
Expensive |
Expensive |
Expensive |
The 90-day roadmap for launching a new business is intended only as a general guide and list of tasks to complete. Each business is unique, with resource and time challenges playing a large role in the actual starting period. For entrepreneurs with a relatively simple model, 90 days may be more than necessary. Others needing real estate and building inventories or test marketing a new product, 90 days may well prove an unrealistic incubation period.
Entrepreneurs are strongly encouraged to do their own research and due diligence when considering an optimal startup phase. Business owners - especially new ones - ought to consider discussing their plans with experts and professionals in the field. These include, but are in no way limited to: attorneys, accountants, consultants, industry peers, mentors (e.g. SCORE), or government entities (e.g. Small Business Administration).
