If you are coming close to planning and conceptualizing your business, you may have already started drawing out different ideas about the future of your venture. Having doubts whether or not it will work out is normal, especially if you thinking about the business type you are planning to actualize. While a particular type of business works for some, experience have thought business people to have a clear idea of the right objectives that have to be present in every business type, whether they plan to do it online, through a normal working environment or through a huge company.
However, if you are still having second thoughts about your business type, there are hundreds of business types you can think about before making the final decision, particularly businesses that are very specific in nature and most importantly, businesses types that are profitable.
To help you, listed below are The 5 Most Profitable Types of Businesses today:
Many of today’s most successful entrepreneurs built their large businesses through simple hobbies. The uniqueness of the products is what makes most hobby products sell. A good example of this is Kim Lavine a mother who discovered her business out of her hobby of creating microwavable pillows using corn kernels. She started the craft as a simple hobby in 2001 by creating microwavable pillows using corn kernels as gifts to people, particularly to the children of her friends. She decided to make money out of this simple hobby after her husband lost his job. Today, Kim owns and runs her own company called “Green Daisy.” Her pillow products are now sold in national retail stores like Macy’s and Saks Fifth Avenue, generating over $1 in sales in 2006 alone. After the success of her pillow business, she then soon ventured out into other forms businesses like pajama lines and home decors.
The beauty about having this kind of business is that you will never run our passion and drive to do your best. However, the downside of this business happens once it gets commercialized. It is hard to separate your personal interests from what your distributor wants to squeeze out from you. Nevertheless, it still is the most suitable and profitable job for people who want to invest on a business based on their passion and hobby.
If you want to earn profit from a business that provides you flexible working hours, lifestyle business may be the best option for you. It is profitable in a sense that it helps you earn money in a more stable way. A good example of a lifestyle business is being a freelance writer, a professional blogger or a consultant. The foundation of this type of business lies on the personal reasons of the business owner. In most cases, lifestyle businesses need not to have other stocks or shareholders. All of the aspects of the business operations depend on you. A lifestyle business is build to run for years and it creates a very good income to those who involve themselves in the business. It also allows to business person to work on something they are passionate of doing and something that does not escape the limitation of their personal interests.
Of all the business types listed on this article, franchise must be something you are already familiar with. You see them everywhere , from fast-food chains like Mcdonalds to coffee shops like StarBucks. Although they are not that appealing to start-up entrepreneurs, the opportunity franchise offers is huge. First of all, you do not have to invest much on the branding of the business because it already is present the market. All that you really have to care about is the location where you want it to be established, of how you are going to further market the brand, and lastly, how you are going to get back your capital which will only take approximately months and a year to earn. However, the downside of franchising is that it requires a huge capital to start. It is an expensive investment and you also have to deal with copyrights and royalties which you will have to pay in the process of acquiring one.
Self-funded Growth Business
Compared to hobby, lifestyle, and franchise businesses, the prime goal of a Self-funded Growth Business is to start up a business with the objective of growing a large enterprise which requires you to hire numbers of employees and millions of revenues. The funding of this type of business will come from your own assets and credits. So this type of business is more ideal for someone who already has an established wealth and resources or someone who has already been successful in other business ventures. In order for this type of business to be successful, everything has to start with one great idea that will drive the force of the business. This type of business is capitalist in form. Most owners of health-cares and insurance companies started as self-funded businesses. The scope of this type of businesses can be very wide and can range from any forms, from products to services.
Outside-funded Growth Business
An outside-funded Business is the total opposite of a Self-funded Growth Business. The goal of this type of business is to have as much investors possible. Most businesses that are outside-funded are those that invest on technology, which is that of the greatest interest of most angel investors or capital investors today. A funded growth business is most suitable for people who do not have adequate capital to start a business. And because this particular type of business is funded by investors, a significant portion of the control and the profit will go to the outside investors. Before you take this kind of business venture, you have to decide very well which group of people you choose to do business with. In reality, most of the companies that are well-known today could have not made it without outsourcing their funds through outside investors.
The five most profitable businesses listed above gives you a broad idea about their characteristics and nature. In order for you to know what best suits your needs as a business person, make sure to thoroughly examine your objectives and goals carefully. By doing so, you will be able to identify which business type you are most comfortable venturing in.