Are you thinking of starting your own business? If the answer is a yes, then you might want to consider the next questions: Why do you want to start a business? How will you start your business? What do you want to build?
It is crucial to fully understand what motivates you to jump on the entrepreneurship bandwagon, such that you will have strong will to keep going towards your goals even when facing challenges and failures along the way. Before deciding what kind of business you want to develop, it is better for you to learn the four major types of businesses:
Service business includes salons, repair shops, schools, banks, accounting firms, and law firms. This business type provides intangible products. It offers professional skills, expertise, advices, and similar products. The product has no physical form in this business.
The service business also knows no boundaries – it means that anyone can start their own service company. This business is good for you who want to work remotely or simply earn extra money as you can sell your service anytime anywhere.
In general, there are two kinds of service business:
Small service such as freelancer, self-employed, or remote employee. As mentioned, if you want to start a small service business, you can do it simply by promoting what service you can offer via available platform such as Fiverr and wait customers to come and hire you.
Big service such as bank, school, law firm and accounting. Different from small service, this service business requires skills and needs more time to grow as you need to find a strategic place for your company and provide all facilities needed. But once you succeed, you can be your own hero as nowadays, there are many people who need this kind of service business.
Merchandising business includes grocery, stores, convenience stores, distributors, and other retails. This is known as buy and sell business because it buys products at wholesale price and resell it in their store with the same at retail price.
Opportunities to grow this business is huge as this is the largest industry worldwide. If you are ready to build your merchandising business, you should also be ready to invest your time and make a living by providing what consumers need. This might take awhile as you need to find needed products that might be not easy to find.
Manufacturing business is different from merchandising business. This type of business changes raw materials to new forms of product that will be sold to customers. Therefore, this business combines raw material, labour, and factory overhead in its production process. Example of this business is boutique and clothes manufacturing.
In order to start this business, you need few soft skills: a flair for innovation, confidence, willpower, interpersonal expertise, multi-task skill, an analytic mind, and knowledge of your markets. Without those skills, your business might not run well.
Hybrid business includes restaurants and hotels. When you open a restaurant, it uses ingredients in making meal (manufacturing), sells bottled drinks (merchandising), and fills customers with orders (service). With the advancement of technology, more and more founders are interested in growing hybrid business. For example, entrepreneur who already establishes a manufacturing business wants to sell their products through the internet and provide delivery service to the customers. As a result, they can make more profits while satisfying the customers.
However, hybrid business is not for everyone. You have to develop an excellent command skill and be able to make great decisions whether or not to hire people for positions you cannot handle. In conclusion, this business is a higher level business of all the three businesses mentioned above.
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