Business is a form of capital investment, why is that? Because business can help you generate money and save it for daily needs. Usually, businesses are built from small beginnings, starting from 0.
Of course, to build a business, you need substantial capital. Therefore, before reaching capital and business, you need to organize a concept. This serves to avoid large losses.
In this article, we will discuss examples of small businesses and building concepts for a business. If you want to build a business or small business, this article can help you realize it.
Key Takeaways:
- Business is an act in the economic field that generates profit.
- Examples of small businesses range from opening a food business at home to online shop businesses.
- Business concepts you can use include B2B, B2C, and C2C.
What is Business or Enterprise Business is any action, deed, or activity whatsoever in the economic field, carried out by every entrepreneur for the purpose of obtaining profit and/or earnings.
In starting a small or large business, you need planning. This planning is the first step to entering the world of trade. You can start from ideas, what items you want to sell, what business field you want to focus on.
Important Factors in Business
1. Competition Level
Business actors in the trading world are certainly numerous, not just from oneself. This is a risk faced by entrepreneurs. In this situation, consumers have the right to judge and choose which products have better quality than other business competitors. In the trading business, you must be sportsmanlike, put forth your best effort in producing quality products.
2. Service Quality
Every entrepreneur will definitely compete to improve service quality. Consumers will feel comfortable and respected if the service quality in a business looks good. This will certainly increasingly attract consumers to keep shopping at your business place. Consumers who have bought a product or service at your business place will certainly come repeatedly if they feel they get good service, they will feel cared for.
3. Product Quality
If you have been able to overcome competition levels and improve service quality, next is product quality. Good product quality certainly needs to be considered. Avoid product defects that will be sold. Because one defective product, if it reaches consumers, will certainly reduce consumer confidence. For business actors, especially small businesses, remain selective and careful when selling goods. Don't let there be product defects that make consumers disappointed. Small business examples that we recommend for you are snack food businesses. You can start this business from home, so you don't need initial capital to rent a shop.
Characteristics of Trading Business
- Main income comes from selling merchandise
- Main costs come from cost of goods sold and other business expenses
- Accounting includes trading inventory accounts
- Acts as intermediary between producers and consumers
- No difference between goods bought and sold
- Sells goods at higher prices than when bought, because the main goal is to seek profit or gain
Information on Business Establishment Permits in Indonesia
In trading business, you need to understand the permits for establishing a business. Moreover, if the trading business being established is quite large. You must register trading activities to obtain a business license.
The permit to run a trading business is called SIUP (Trading Business License). SIUP is a document that must be owned by business entities or individuals who want to establish a trading business.
Even if only a regional trader on a small scale, they should have a Trading Business License or SIUP. SIUP holders don't always have to be large-scale traders, but these rules apply to all types of traders. SIUP is grouped into three categories based on the amount of capital in each trading business establishment:
- Large SIUP, for trading businesses that have initial capital above Rp500,000,000.00
- Medium SIUP, for trading businesses that have initial capital ranging from Rp200,000,000.00 – Rp500,000,000.00
- Small SIUP, for trading businesses that have initial capital and net worth of owner less than or equal to Rp200,000,000.00
Every business idea is certainly different. If you like business in the design field, here are our small business recommendations for you.
Small Business Recommendations Through Design
1. Children's Book Design
Illustration and design are important parts of children's books. Many people want to write children's books and have ideas but can't create the illustrations and designs. In this case, you can showcase your skills while creating a business opportunity. You can offer portfolios online and show your drawing style. If you don't have a specific children's book portfolio yet, create short texts and combine them with illustrations as if it's a children's book.
When you get clients, you'll work with them to create storyboards, or series of sketches for different scenes. Remember, some children's books lean more toward illustrations, while others have more text.
2. Print on Demand Design
Print on demand might be one of the most popular small business examples. In this business, you print designs on objects like glasses, hats, t-shirts, and much more. The designs can be original illustrations, creative text, to company logos. Now many designers offer print on demand through digital marketplaces like Teespring and Redbubble. You can also print your own designs before shipping the items. Start with items that have many enthusiasts, such as t-shirts, tote bags, or water bottles. You can also make variations like washi tape, journal books, to keychains. Make some trial print versions at the beginning before sending them to buyers.
3. Product Packaging Design
You don't need to work in a factory or large company to design product packaging. With the increasing number of entrepreneurs, you can offer product packaging design services. Besides earning income, you can also support SMEs. When designing packaging for certain products, you need various special design skills. From color combinations, composition, to branding strategies and buyer psychology, all must be considered. You can also use design skills to create mock-up product packaging models that can be used by any brand. These digital mock-up packages can be made in various forms and sold in online marketplaces. Product packaging design is quite complex. Besides aesthetics, you must consider business costs, local culture, product appeal, and demographics. However, you will also meet clients who request detailed and complete designs. You need to be optimistic to succeed in getting this project, you can also boost your portfolio to attract many clients.
4. Sell Photos on Microstock Sites
Microstock is the term for sites that sell stock images for free use at certain prices. You can create accounts on such sites and upload your photos or illustrations. People who download them must pay a certain amount of money. Microstock sites have different characteristics that you can choose according to your needs. Here are some examples that might be familiar to you.
- Canva, suitable for selling vector designs and photos
- Getty Images, suitable for reaching foreign consumer markets and publications
- Envato Elements, suitable for selling blog template designs, websites, magazines, brochures, and presentations
- Shutterstock, suitable for selling quality photos
- Dreamstime, suitable for selling photos and illustrations with fairly high payments
As a designer, you can also offer value. This serves to increase the selling price of each work you create. Here are the points:
- Translating concepts, ideas, and messages into attractive visual representations
- Creating business identity in various design elements
- Helping business owners promote products or services
- Creating artistic and attractive visual works with artistic value
- Helping writers and publishers promote their work visually
- Providing professional advice about various visual elements that support business
- Collaborating with other professionals in one team to complete large projects
- Providing education about design science and techniques
How to Make a Neat Business Concept
1. Determine Business Goals
First and most importantly, you need to know the reason your business exists from the beginning so that the concept is stronger. Do you want to establish a new business that hasn't been thought of by competitors? Whatever it is, take good notes and explain how your business can be established as clearly as possible so that investors and customers can understand it.
2. Conduct Market and Competitor Research
A business concept certainly cannot run without a basis of customer needs. Therefore, you must know what is needed by target customers, and whether there are similar businesses trying to meet those needs.
The reason is that each audience group certainly has different needs, and each business also has its own unique points. By knowing both of these things, you will find gaps to maximize profits.
3. Create Product or Service List
If you already know the unique advantages of your business and customer details, now it's time for you to describe all products and services that you will offer to consumers.
This explanation not only includes names and basic descriptions but also benefits that customers can feel and add-on options they can choose to make it more practical.
4. Analyze Financial Conditions
Realizing any business concept will certainly require funds, both short and long term. Therefore, you also need to consider current capital adequacy.
By conducting financial condition analysis, you can determine whether you need to find additional funding sources or modify your concept once again to make it more feasible. Especially if you plan to apply for a loan so as not to burden finances.
Best Ways to Start a Small Business
1. Choose the Right Type of Business
In starting a small business, choose a business that suits your interests, abilities, and passion. When doing something you like, you will certainly be more motivated to develop that business.
2. Create a Business Plan
After choosing the type of business, the next step is to create a simple but well-structured business plan. Write down vision, mission, target market, marketing strategy, and financial estimates.
By having a clear business plan in small business for beginners, you will find it easier to make business decisions and evaluate business development over time.
3. Don't Hesitate to Ask for Help
Don't feel embarrassed to ask for help or ask people who have experience in the business world. Meet experienced entrepreneurs, join business communities, or attend business-related seminars and workshops. Learn from others' experiences so you can avoid mistakes commonly made by beginners.
Tips for Small Business Success
Maintain Product Quality
Product or service quality is the key to customer satisfaction. Make sure what you offer has added value and meets customer expectations.
Create Attractive Marketing Strategy
You can use social media and online platforms to market your business. Create interesting and relevant content to reach potential customers.
Build Good Relationships with Consumers
This relationship has a big influence on small businesses for beginners. Good relationships with suppliers will facilitate the procurement of products and services you need.
Enhance Experience
Focus on good customer experience. Provide friendly service, be responsive to customer feedback, and maintain good communication with them.
Business Concepts You Can Use
Online-to-offline (O2O)
Online marketing that will direct consumers to make purchases at physical stores.
Business to business (B2B)
Offering products or services to clients in the form of large companies.
Business to customer (B2C)
Similar to B2B, but the target audience is individual consumers or right-hand representatives of business institutions.
Customer to customer (C2C)
A business model that connects individual consumers so they can make transactions, for example in marketplaces.
Examples of Small Businesses
1. Dropshipper or Reseller Business
The first example of a small business that can be tried is becoming a dropshipper or reseller. These two types of businesses are different from each other. Dropshipper is an online business where you act as an intermediary in selling products to buyers. So, it can be said that dropship doesn't have stock of goods. Only as an intermediary agent to get a product from suppliers or distributors. While reseller is an agent or actor who resells products bought from suppliers or distributors. So, it can be said that reseller is a retail product seller from suppliers or distributors of that product. The difference between dropship and reseller is only seen from the product itself. Dropship doesn't have stock of products they sell, while reseller has stock of products sold. So both are examples of promising small businesses. The capital owned depends on which type of business you want to try. Because most dropship and reseller businesses are online-based and through marketplace channels.
2. Thrift Shop Business
Sometimes underestimated, it turns out used clothing can also generate significant money. Currently, the used clothing business has become a promising small business trend. This example of small business really makes fashion enthusiasts interested in getting involved. Many millennials are also starting to be interested in items sold in vintage markets. Therefore, thrift shops as a term for used clothing sellers are starting to spring up everywhere. Thrift shop is one example of a promising home-based small business. Only with your skill in choosing used clothes, then washing them, and posting them online on channels that support such sales. Of course, the profit is obtained from the difference between the first purchase price and the price after being cleaned. You can even set used clothing obtained at three times the price. Thus, thrift shop or used clothing business has become a trending business in the business world. Not a few have successfully gained big profits from selling used clothes. From this example of small business, you only need to start from your own home, no need for big capital to rent a place.
3. Kilogram Laundry
The next example of small business is kilogram laundry service. It cannot be denied that washing is an activity that drains a lot of energy. Most people who are busy and have tons of work at the office make kilogram laundry as one alternative. Therefore, for those of you who have more time, you can use this to open small business opportunities. Capital to open kilogram laundry service is not complicated. With capital of around Rp7 million, you can already open a kilogram laundry business at home. This capital is for buying washing equipment and also paying employee salaries in helping the business. With not too big capital, you will get big profits. So you can use this opportunity to generate profits.
4. Homemade Snack Business
The culinary business still has its own appeal. Not a few people start businesses from the culinary world. For those of you who have expertise in cooking, don't hesitate to start a culinary business from your own home. Business by selling your own cooking results is one example of a promising small business. If the taste of the food made is delicious, then you must dare to make that cooking as a business opportunity. In fact, this business is becoming a trending business. For example, like selling pudding, sambal, fruit soup, pempek, and can also sell heavy foods like geprek chicken rice and others. This small business can be utilized to seek big profits. This example of culinary small business also doesn't need to rent a place, you only need capital for food or drinks that have selling value.
Trust Your Savings with BTN
To store the results from the small business you've built, you need a safe and reliable place. The collected money can be saved and invested in BTN.
BTN prioritizes the welfare and security of every customer when transacting. It is also the right choice for young business people, for business smoothness.
BTN offers easy transactions and safe storage for you. Visit the BTN website for further information.
