4 answers
Renata
Student
San Luis, Arizona
1
Question
Asked
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what is a small business that could bring in money fast without losing profit?
for example, a coffee shop? a local restaurant in a small town?
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4 answers
Heidi Hokanson
Marketing
7
Answers
Washington, Washington
Updated
Heidi’s Answer
The examples you mentioned are brick-and-mortar businesses, which all require real estate, staff, interior decorating, it's a long list. You can however start an online business mailing products from your home, or use a platform like etsy or amazon to help with logistics. Or build your own e-commerce site with Shopify. The profit and loss calculations are little simpler with fewer things contributing to the overhead. There are tons of resources out there to help people start businesses this way. Just put it in a google or youtube search.
Hugh Cook
Credit Risk
2
Answers
Dallas, Texas
Updated
Hugh’s Answer
Renata,
A few things to consider for a low risk business. The example mentioned create large overhead with fixed costs. If you're looking to do something low risk you want high margins and low overhead. An example of this is would be anything where you take orders of a good or service before you actually possess the good or service. Note, creating money fast is not a driving factor you should have when starting the business. Create a sustainable model which will axiomatically develop sustainable profits in the long term. Lastly, take into consideration you business wont necessarily be profitable from the get-go as there's start up costs associated with doing such. However, your goal should be to make operating profits.
There's a lot of good information out there on how to start a business. I'd stay away from fad videos with headlines that read "get rich quick," and stick to notable articles.
Thanks,
Hugh Cook
A few things to consider for a low risk business. The example mentioned create large overhead with fixed costs. If you're looking to do something low risk you want high margins and low overhead. An example of this is would be anything where you take orders of a good or service before you actually possess the good or service. Note, creating money fast is not a driving factor you should have when starting the business. Create a sustainable model which will axiomatically develop sustainable profits in the long term. Lastly, take into consideration you business wont necessarily be profitable from the get-go as there's start up costs associated with doing such. However, your goal should be to make operating profits.
There's a lot of good information out there on how to start a business. I'd stay away from fad videos with headlines that read "get rich quick," and stick to notable articles.
Thanks,
Hugh Cook
david kirk
Retired Computing Manager
478
Answers
Syracuse, New York
Updated
david’s Answer
Hi, Renata,
Unfortunately, there aren't any. Even in a coffee shop, there is rental, insurance, equipment, hiring, advertising, supplies, all of which must have an investment before the first customer walks in. A challenge of such businesses is that you are probably competing with other businesses, so it may take months before you attract enough customers to start earning a small profit. And that happens only after you have made a significant investment, so you may not recover enough revenue for a year or more before you have paid off your initial investment, plus the continuing monthly costs for all of the items. Investing in a business is like investing in the stock market. You may gain and you may lose. A business can be a good investment over the long term, but the first period is often where you are in debt. All the best in your pursuits.
Unfortunately, there aren't any. Even in a coffee shop, there is rental, insurance, equipment, hiring, advertising, supplies, all of which must have an investment before the first customer walks in. A challenge of such businesses is that you are probably competing with other businesses, so it may take months before you attract enough customers to start earning a small profit. And that happens only after you have made a significant investment, so you may not recover enough revenue for a year or more before you have paid off your initial investment, plus the continuing monthly costs for all of the items. Investing in a business is like investing in the stock market. You may gain and you may lose. A business can be a good investment over the long term, but the first period is often where you are in debt. All the best in your pursuits.
Fred Rosenberger
Data Analyst
462
Answers
St. Louis, MO
Updated
Fred’s Answer
There is no guarantee. Running a business is HARD. Aside from all the things you CAN control, there are external factors you cannot. What if you build a coffee shop, and then a week later, Starbucks moves in next door? What if you open a restaurant, and a pandemic occurs forcing everyone to have to stay home for a year?
There is evidence showing that 20% of new businesses fail in the first two years and about half will fail after five years.
I'm not trying to discourage you from starting your own business, but you should go in with your eyes open.
There is evidence showing that 20% of new businesses fail in the first two years and about half will fail after five years.
I'm not trying to discourage you from starting your own business, but you should go in with your eyes open.