Starting a small business is exciting and scary, but sharing your product with the world is a beautiful opportunity. It is natural that you want to get it just right.
There are so many things running through your mind: goals, strategy, how to organize your processes and increase revenue, how to cut potential losses. Although there is no one universal “right” way to own a small business, there are definitely some great examples out there that will inspire you. Let’s look at a few success stories in the world of small companies.
- What are the types of small businesses?
- 15 examples of small businesses
- How to choose a small enterprise to run?
- How to start a small business?
- Small company, great expectations
What are the types of small businesses?
A small business is a pretty general term – there are so many structures, colors, and flavors to them. The most popular kinds, however, are the following:
- Sole proprietorships are an example of ordinary small businesses. They are owned by single individuals who are liable for all business transactions, debts, and lawsuits, unlike LLCs, which protect owners from some legal complications;
- Partnerships, also one of the most popular types of small businesses, are run by two or more individuals who are liable for the financial and legal aspects of all their business operations;
- Incorporated companies: this example is registered with a state to become separate legal entities, independent from its owners and shareholders. This is a significant legal distinction since, in the eyes of the law, an incorporated corporation practically becomes a different “person”. Limited liability is provided to the owners of corporations, and in the event of an owner’s passing, the corporation continues to exist.
15 examples of small businesses
After a thorough analysis of the popular fields in small business, we have come up with a few examples of small businesses for you:
Professional, scientific, and technical services
What is it? This sector includes a great variety of services. Scientists, lawyers, engineers, and a good number of people with STEM degrees reside within this industry. It also includes advertising, specialized design services, tax preparation, and more.
Why is this field popular? The popularity of this sector is directly related to the number of essential industries and niches it encompasses. Scientists and labs are greatly sponsored by the government and private organizations, ensuring that there are workspaces within several scientific fields. The crimes always get committed, and tax forms always get issued, hence the constant need for lawyers and tax advisers. Industries keep growing and require engineers to optimize processes and increase gains, and everything that has been made needs a design, hence the need for specialized design services.
How do you start? Once you have a specialization within one of the niches in this sector, you need to find a good location, one of the larger cities, preferably. If you are currently working for a university, research how much time your contract allows you to spend on your personal business, and whether this branching out will cause a conflict of interest in this small firm example.
Construction
What is it? New construction, additions, alterations, maintenance, and repairs are all included in the construction sector. The companies in this field are typically hired to perform work on a contract: buildings, bridges, or new highways—all these fields are potential niches for your small firm.
Why is this field popular? The constant growth of the human population, as well as the natural decay of existing structures, ensures the need for more workers. This is one of the most common small businesses that requires a large number of people to complete the job, so it has a large number of workplaces.
How do you start? Decide on your specialty: are you better at transporting construction materials, doing the facades, or industrials? Residential, commercial, or both? Research the areas that are most in need of your services. Get familiar with the local establishments, and check whether there are any professional communities that are helping beginners. Based on the location and state, obtain the required licenses and permits you need, gather the funds, and make sure you are prepared to handle the contracts as a local small business.
Real estate & rental and leasing
What is it? This field is all about renting and leasing assets, both tangible and intangible. That means not only property rent and leasing are included, but also patents and trademarks (but not copyrights). This field also includes handling other people’s rent, such as real estate agencies that represent both property owners and buyers. This means: equity real estate investment trusts, rental and leasing of motor vehicles, computers, and consumer goods.
Why is this field popular? Leasing and renting property is always in high demand. You may only want a jetski for the weekend by the lake; a lot of things are only needed for a short period of time, especially in tourist areas. And trademarks are included in almost every major brand out there, coming and going as the companies are passed on or sold.
How do you start? Identify your area of expertise, perform the research, and acquire something you believe will sell well. You will spend a lot of time communicating with your customers; this business is all about being good with people. Estimate the budgets: how big will your sales team be, how much will you need to invest in your project, and how much will a professional phone system cost?
Administrative, support, and waste management
What is it? This industry sector includes large and small companies that support other establishments. This could be anything from security to HR services. Waste disposal, solicitation, office administration, paperwork, cleaning, and surveillance are all included in the Administrative, Support, and Waste Management sector.
Why is this field popular? What franchise doesn’t have paperwork? How quickly will an office become a health hazard without cleaning? Where will the waste from your community go if no one collects it? How does a store function without surveillance? These are just a few rhetorical questions that emphasize the important role administrative, support, and waste management companies play in our society.
How do you start? Choose the specialty you feel comfortable with for this common type of small business and decide whether you can handle it on your own or whether you need a team. Solopreneurship is easier to manage, but multiple people will bring in more profit. Figure out the state and city/town where you would like to become a small business entrepreneur. Larger cities will always have more need for cleaning services than small towns. Take into consideration the licenses and their costs, as well as equipment and tax.
Transportation and warehousing
What is it? The transportation and warehousing sector is all about equipment and support activities related to the modes of transportation by air, rail, water, road, and pipelines. Warehouses are included, as they are considered to be transportation-related facilities.
Why is this field popular? The travel industry is booming once again due to both internal and external tourism. And not just travel—the moving and storage services for all the families and college students, cargo, cruises—they make up so much of American society that it would be impossible to imagine life without them. Regardless of the economic situation, there will always be a need to transport materials or people across the country.
How do you start? Uber was a small transportation startup at some point. It was so successful because it identified a need and managed to successfully fulfill it. Maersk started out as a small family business, and now it is one of the largest and most successful cargo companies in the world. Although your goals may not be as ambitious, looking at how they found their niches may be good inspiration for a local business.
Retail trade
What is it? Store and nonstore retailers make up the most popular small businesses in the retail trade sector. The store retailers operate at fixed locations, like the bike shop down the block, while the nonstore retailers sell their goods via online or portable methods, such as door-to-door solicitation or e-commerce. Nonstore retail also includes vending machine distribution.
Why is this field popular? This is one of the oldest business types if you are interested in being a small business entrepreneur. Selling and reselling goods is highly valued in today’s consumer society, and while many trends come and go, this segment is not going away anytime soon.
How do you start? Identifying the needs of your community is a good start to launching a small business. Take a few days for observation: do you see people who jog at the park looking around in search of where they can buy a water bottle? Is the nearest bike shop miles and miles away? Are there always hungry college students in your town who struggle to get food after everything is closed? After that, all you need to do is make a strategy and launch.
Health care and social assistance
What is it? The health care and social assistance industry includes a diverse range of options for popular small businesses from test centers to private clinics. If you have a medical degree, this small business fits you perfectly. This field is people-intensive and high-risk, but it also holds one of the most important roles in society.
Why is this field popular? People will always need health care, and now there is a virtual niche in the field. Accessibility, low costs, and high demand all make virtual medicine a steady income and a prospective field in the industry. Social assistance is a slightly different example of a business in the field, focusing on the caretaking part of healthcare. Whatever your choice is, chances are there will be demand.
How do you start? You would usually be starting with a medical degree, or at least with getting familiar with the medical field if you have medical professionals on your team. If the market location you are about to enter is saturated already, it’s possible that you’ll have to work significantly harder to gain a foothold. Once you do, however, you will have a chance to build a loyal customer base.
Arts, entertainment, and recreation
What is it? A diverse variety of enterprises that manage facilities or provide services to cater to their consumers’ diverse cultural, entertainment, and recreational interests. Performing arts, education, gambling, museums, and spectator sports are all mixed within this sector. Anything that people enjoy for entertainment is a good description: musicians, actors, fitness trainers, amusement attendants, etc.
Why is this field popular? Watching a movie after work, going to a concert with your friends, taking your family to a museum. It is tough to find an American who does not occasionally enjoy at least one of these things. The expression “bread and circuses” may have originated in the Roman Empire, but the concept is as old as humanity, and it is not going anywhere.
How do you start? Netflix was started by an idea to rent DVDs by mail, which turned out to be a success that shaped the movie industry we know today. A unique sample, sure, but there are smaller businesses in the entertainment industry that are also doing well. The key to becoming this small business owner is doing what you love and finding a way to market it to the right audience via research.
Accommodation and food services
What is it? Anything that includes lodging and/or food for immediate consumption is part of this small business example. Fast food, restaurants, hotels, motels, and all their personnel. Food and lodging are often together, thus they are often discussed as one segment.
Why is this field popular? Without accommodation and food services, tourism would cease to exist, and leaving your house would become far less enjoyable. No Starbucks, no Wendy’s, Waffle House gone. Visiting new locations and small business enterprises while eating new foods is one of the most joyous activities humans take part in.
How do you start? Bed and breakfast, a cute cafe, catering, or hostel business owner: you will need to make your choice. The good thing is that research will be especially fun within this segment: you can go and scout your competitors’ locations. Try their food, look at their places, and meet new people. Then take account of all the things you like about these small businesses in the USA and come up with a plan of your own. Gather resources, set deadlines, and start working towards your dream.
Finance and insurance
What is it? Financial intermediation via asset sales and acquisitions, fee collection, insurance premiums, or annuity considerations and their investment. Financial managers, chief executives, personal finance advisers, analysts—all those people and many others make up the foundation of the financial segment.
Why is this field popular? Finance is involved in everything today, and insurance is just another financial tool. The financial system is crucial to the economy. It facilitates the flow of funds between savers and borrowers, ensuring that financial resources are allocated properly to promote economic growth and development. Medical, construction, transportation: it does not matter which industry you name, finances and insurance are a part of it.
How do you start? This is a popular small business that requires a university degree at the higher levels, especially if you are planning to go into banking. Bachelor’s degrees should be enough for most positions, though. If you want to start a small firm in this field, you will absolutely need experience and legal assistance. Working with money implies great responsibilities, and you will need to make sure you are thoroughly prepared prior to offering your services.
Educational services
What is it? Profit and nonprofit schools, courses, training centers, and universities —all of these are included in the examples of a small company for this segment. Organizations that have teaching and education as their goal could be online, in person, pre-recorded, on TV, etc.
Why is this field popular? Education shapes society, allows you to switch fields and obtain higher qualifications, and improves a country’s quality of life. We start learning from the day we are born, and many continue until their dying day. Just the global EdTech market is projected to grow annually by 19.9% from 2021 to 2028, showing the increasing interest and investment in the segment.
How do you start? This is a lucrative small business field. Would you like to work on upgrading a school’s technology, do you want to start online courses, or are you after the ambitious goal of creating an education center? Narrowing it down will provide you with a clearer business plan. Some fields will demand a license; others, like some online courses, will not. Online courses are the easier way to start, and they require fewer financial investments.
Wholesale trade
What is it? Wholesale trade, as one of the examples of a local business or a larger enterprise, is all about selling and reselling raw and unprocessed products in bulk, such as in agriculture, mining, manufacturing, and some information companies, like publishing. This field also includes transportation, buying, scientific input, moving, and more.
Why is this field popular? Raw materials are in demand, be it recycled plastic that can be used to create new items or clay. The wholesale trade is the link between manufacturers and retailers. Wholesale traders have a lot of influence on market pricing and planning.
How do you start? You will need to know what you are buying and selling to grow your small business. Ideally, it will have to be something that is not yet on the market but will be in high demand. Check if you have any special connections or if there is something only you can deliver to your community. Or do you simply want to be on the scientific side of it, probing the materials? Once you’ve got your place in the wholesale trade chain, focus on the equipment you will need so you can start offering your services in this small enterprise example.
Manufacturing
What is it? This is the next step after the wholesale trade segment. The manufacturing sector is just that: materials, substances, or components are mechanically, physically, or chemically transformed into new products. The scale of the facility varies: a home, a factory, a mill.
Why is this field popular? Quality products are a must for a functional society. Even if it is not about creating original products, taking and fulfilling orders from other companies is also a popular option. Manufacturing is a crucial component of the American economy since almost all the items in use have been manufactured by someone.
How do you start? This is typically something that you have already done if you are planning to start a common small business in this segment. You could also get a loan and purchase a local business from someone else. If you are looking for a way to have everything ready in a shorter period of time, it might be an exciting journey. But before you go all out and buy a mill in New Zealand, make sure you have all the information you can about it to avoid problems.
Information
What is it? Small companies in this field are made up of information processing services, producing and sharing information and cultural elements, as well as providing the means to transmit or distribute these products. This field includes customer service representatives, telecommunications equipment installers, and repairers (with the exception of line installation). This segment is mostly dominated by private industries, but local, state, and federal governments are also involved.
Why is this field popular? There is just so much data. Information keeps flowing as the internet grows, and there is a constant need for more people to manage it. There is also a need for operators who can take care of the equipment.
How do you start? You will require a solid background in this popular business industry. There are many online courses available; some are free, but it is critical that they are up-to-date and taught by professionals, as competence will be essential. Finding clientele should be rather simple due to the demand, but retaining it and keeping everything in check will be a more challenging task that will demand time and stress management.
Agriculture, forestry, fishing, and hunting
What is it? Hunting and gathering, in essence. This small business sector focuses on cultivating crops, rearing animals, harvesting timber, and capturing fish and other lifeforms from a farm, ranch, or their natural environments. If you own a greenhouse, a hatchery, an orchard, or a nursery, you are a part of this segment. Truck and tractor drivers, farmworkers, and logging equipment workers would also be included.
Why is this field popular? This is one of humanity’s most important fields, as well as one of its oldest. Producing food is not an option, it is an absolute necessity. That is why, for as long as this country exists, there will always be jobs in the agriculture, forestry, fishing, and hunting segment.
How do you start? This is a high-risk and high-responsibility field; going into it will take a lot of effort and will definitely pay off once everything works out. Assessing potential risks and necessary investments is a good place to start, and you can certainly start small. You will need to get a variety of licenses and pass a few checks before you are allowed to grow beyond the level of an ordinary small business.
How to choose a small enterprise to run?
Now that we have looked at a few potential small business examples, we should talk about your own. Only something that comes from your heart and is truly unique to you will provide you and the world with a product that will last. Creating a small business enterprise is not just about monetary gain or ambitions; it is about giving birth to something new that will have the power to impact the lives and society it interacts with.
There are a few questions you should ask yourself if you are set on becoming a business owner:
- Have you assessed your skills and resources?
- Do you have a clear vision of your product, do you absolutely love it?
- Does your vision match the practical reality given your resources?
- Do you have a financial plan and entrepreneurial funding?
- Have you analyzed the market, is there a demand for your services?
- Do you have a clear marketing strategy?
- Will your business structure be able to handle a large volume of clients and orders?
- Do you have a few backup plans to keep going and growing?
How to start a small business?
The algorithm of action will be different depending on the small business idea you go with, but some steps will be universal:
- Ensure that your organization falls within your area of expertise. That way, you will not have to frantically search for answers when it comes to running the firm;
- Get the support you need. Having the people who support you and the finances to rely on can make or break your small organization. It is always better to have a backup;
- Set the expectations. You will not reach your goal if you do not know what it is. Define the desired outcome, preferably with clear and precise KPIs;
- Do the SWOT analysis. While making your business plan, write out and define the Strengths, Opportunities, Weaknesses, and Threats for your SMB;
- Software. Choose the software. Will your team work in the Google ecosystem, or do you have a different cloud service in mind? How will you keep track of tasks, budgets, and KPIs? How will you handle professional communication, so you can have proper work hours, voicemail, an auto attendant, etc?
- Workspace. Set up a workspace where you will not be disturbed while you are taking care of your small business startup. It can be a room, an office space, or a coffee table in your garden—as long as you get things done with minimal interruption;
- Legal aspects. One of the most important things to do for any company is to ensure that you are operating within the legal frame, that all fees and taxes are paid, and that in no way you are violating the law.
Small company, great expectations
There’s a common theme in each small company example: you are selling something you have expertise in. It does not matter what the field is as much as the passion, planning, and execution. The top smb’s in all fields are making excellent revenues, so do not choose based on the numbers, start with what you love.
It will take hard work and long nights. You might have to wait a year or two before you reach stability with any of the examples of small business, but that is completely natural. The secret behind most success stories is motivation and persistence. You have what it takes, now it’s time to start your journey and make a difference with your entrepreneurship.
