Owning a Small Business: The Untapped Gold Mine in 2021
Being a small business means you can invest into the community and your own stock.
Small businesses are witnessing a rebound in 2021, increasing owner confidence heading into 2022.
I’m going to kick off this post by saying 2021 wasn’t nearly as bad as projected for small businesses post-pandemic. More than half of the government’s PPP (paycheck protection plan) loans went to businesses with fewer than ten employees. Additionally, the number of small businesses has doubled since 1982. What this means is that there’s a greater sense of confidence amongst small business owners and the need for smaller businesses over large corporations has skyrocketed. So, read on to learn more about owning a small business and how they prove to be an untapped gold mine in 2021.
Community Involvement Leads to Monetary Gains
What sets small businesses apart from big dogs? Simple answer: community involvement.
“It’s your small businesses that have been the sponsors of the Little League baseball team, supported the local civic groups, sponsored student scholarships and helped plant flowers and trees along Main Street,” Wagner says. “It’s just what they do. It is institutionalized within owning a small business in a community.”
As a result, smaller businesses are able to invest more into their communities. In turn, those same community members invest in them. Hence why a lot of larger corporations were forced to shutter their doors amid the pandemic. When your customer interaction intent is stronger than your desire to make a profit, your profit margins begin to increase. Talk about bang for your buck.
Freedom in Small Business leads to Uncapped Earnings
Time is money. We all know that owning a business is tough, provided you’re likely operating lean. However, being a small business owner affords you the ability to create your own monetary empire. The equation works like this: what you decide to put in is what you get out. In other words, your profit is dependent upon how much or how little you want the company to grow.
If you want more money, you will likely have to increase your efforts in order to grow the company to do so. To that, you get to decide how much time you want to spend and where. Knowing, that there’s really no ceiling or earnings cap. The average small business owner can make on average $73,000-$156,000 a year, plus commission, profit sharing, and bonuses.
Showcasing your Unique Value Proposition
You’re small. Unlike corporations, you have fewer hurdles to jump and fewer superiors to receive approval from in order to make changes. You have the ability to create your niche and define your offerings and benefits to your customers. Your goods and services are unlike the masses. Current market research suggests consumers are more likely to pay more for something different, like local goods and services than to invest in mass corp. Furthermore, by showcasing your unique value proposition (UVP), you stand out to consumers, bringing you, more capital.
small businesses that make the most money
Certainly, individuals go into business to make a profit. If you’re looking to make a lot of capital with minimal investment. Take a look at the below list of small businesses that have become untapped gold mines in 2021.
Food Trucks
Car Washes
Auto Repairs
Mobile App
Summary
In sum, if you’re looking to invest in a business but are unsure what, check out, first, your options for small business. Increased funding opportunities have become more readily accessible. With the initial capital required to start being lower than beginning a larger company, there’s the ability to profit sooner. Especially, given the consumer demand shift. Consumers are more likely to spend more at a smaller business they believe in and connect with than corporations. Take the time to research the market. By planning ahead and learning about what it takes to own a business, you will position yourself better when tapping into the untapped gold mine of small business.
Bonus Tip! Have a clear mission statement
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