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Modern prospects of small business

The prospects of small business are connected with the understanding of the fact that it occupies one of two niches in the economy. The first of them is the start of new business areas. The second niche is to help medium-sized, but most often large businesses. In our conditions, about 10-20% of small businesses work in the first niche. In the second niche – 80-90% of small businesses.

Small business prospects in the 21st century

In other words, the vast majority of small businesses work as assistants to big business and therefore depend on it. For example, car service centers are assistants to manufacturers of cars and spare parts to them. The sphere of trade is the helpers of producers of goods. Travel agencies are assistants to tour operators.

The prospects of small business from the first niche depend on the development of the economy as a whole, as well as on the development of scientific thought and technology. But the secret is that big business, Economics, science and technology depend on ideas. This means that in the end, the prospects of small business are associated with the prospects of spreading certain ideas.

What do small business prospects depend on
What do small business prospects depend on

It turns out that small businesses need to be very careful about what ideas are popular and what are not. For example, a certain communication salon made a bet on the sale of phones under the brand name Nokia. However, Nokia’s management took and chose to build the market idea, which is not popular with buyers.

To maximize profits, it is advisable to choose the company whose products are in maximum demand

As a result, the phones that are the embodiment of this idea, cease to be sold. The salon itself can do everything right, but the manufacturer does not. As a result, if he does not refocus on helping other big business, then go bankrupt. In order to properly reorient and not burn out, it is necessary to study the ideas that are embedded in consumers.

Next, we need to make a rating of these ideas and then it will become clear on what to bet. After that it will be necessary to understand who from representatives of big business is engaged in development of this idea and to switch to trade of its products. To maximize profits, it is advisable to choose the company whose products are in maximum demand.

Small business prospects in the 21st century
Of course, it is hard to realize that small business is not independent and that the prospects of small business depends on big business. But there’s nothing to be done, that’s how the economy works. In principle, there is nothing wrong with this, you just need to keep your nose in the wind, study consumers and identify the most promising ideas and deal with them.

The essence of business is that business is a process of materialization of ideas

For the purpose of consolation of representatives of small businesses it is possible to note that in case of problems in the market and losses at small business small, unlike big business where they happen simply huge, and sometimes and fatal. It can be noted that the prospects of small business are often better than those of big business, because small business is very adaptive.

One big business started having problems – you work for another. The main thing is to understand the role of small business, and indeed the essence of business. The essence of business is that business is a process of materialization of ideas. First, the idea is created, then implemented in consumers, as a result of which they need the appropriate goods or services.

What are the prospects for small business
What are the prospects for small business

Without an idea, business is impossible. If you have an idea, you have a business; if you don’t have an idea, you don’t have a business. This is the essence of our world. If there is no idea, then effective ways of business development are not available, so the opportunity to build a big business is also not available. In General, of course it should be noted that the real business is the creation and promotion of their ideas.

When you promote someone else’s idea, it’s more of a hired job than a business

Small business can introduce new ideas and then become a big business or integrate with big business, or to promote someone else’s idea – which is helping big business. Other for small business is not necessary. Each path has its advantages and disadvantages. Accordingly, everyone decides for themselves which way to choose.

When you promote someone else’s idea, it’s more of a hired job than a business. Small business, which is mainly engaged in the promotion of someone else’s idea – is a mercenary from the owner of this idea. This feature of small business is due to the fact that it has little opportunity to promote their ideas and to promote it you need a lot of resources.

Real small business prospects
Real small business prospects

Like any other mercenary, small business is usually satisfied with small earnings. To earn a lot, a small business must become big for which it needs to create and develop an idea. The more people the idea is implemented in, the more consumers will be created and the better prospects for small businesses are viewed.

In other words, it has created its own market, where it is a MONOPOLIST

For example, there is a company called Samsung. She has generated an idea that can be described as ” new technologies at an affordable price.” She introduced this idea to a certain circle of customers, let’s say it is 100 million consumers around the world and develops it. In other words, it has created its own market, where it is a MONOPOLIST.

There is another company – Sony. She has generated an idea that can be described as “new technologies at a high price” and is also developing it. The number of people in whom this idea is implemented, for example, is also 100 million people. In other words, SONY has also created its own market, where it is a MONOPOLIST, where IT has no competitors.

The financial Outlook for small business
The financial Outlook for small business

If these companies did not have their own markets in which they are monopolists, they would not receive profits and would work on the verge of zero profitability. The presence of its own market and as a consequence a monopoly position on it gives these companies the opportunity to set prices above the level of profitability and profit.

Most of all from the market receives the owner of the idea underlying it

In turn, these companies have dealers. They develop other people’s ideas, respectively, ideas that promote Samsung and Sony, and not their own, with all the ensuing consequences. The owner of the underlying idea receives the most from the market, because he invests the most in its development and the idea “thanks” him the most.

She will certainly “thank” anyone who helps her develop, but she does not care whether it is Edward, or it will be David, or it will be Sergei, or it will be Ahmed, or another “small businessman”. The idea will thank everyone, but they will all get very little, the less the more “small businessmen” help to develop the idea they are engaged in.

Prospects of development of small business
Prospects of development of small business

Unlike the mercenaries who are hired by the owner of the idea for his business ,the “small businessman” does not receive a salary from him, but usually lives with a percentage between the retail and wholesale price. The better I helped the idea to develop, the more I earned. But here it is necessary to understand that earnings are 100% proportional to the number of consumers in this market.

If there is one small business in the market, then the whole amount of gratitude will go to him

If the number of consumers is 1000, and the difference between the wholesale and retail price is $ 100, it is clear that the volume of earnings of the entire market will not be more than $ 100,000. If there is one small business in the market, then the whole amount of gratitude will go to him. If there are 10 businessmen, they will have to divide the gratitude by 10 and they will receive a maximum of $ 10,000.

If someone works better and better, he will get more, if he works less, he will get less. The only way to win this race is to read useful marketing articles. Reading such articles develops marketing thinking, and if they are not enough, you can always get advice on business and marketing.

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