Should you be investing your time and money in creating a winning micro-business in 2024?
Yes. Micro-businesses are a subset of small businesses with fewer employees and revenue, but with a similar growth model. This makes them an attractive option for capable individuals motivated to start their own business.
Micro-business also represent more than 91% of businesses in the US. More than 71% of businesses in the UK are owned by one person and can be termed as micro-business. Though micro-businesses require the same amount of effort as a small business, they have less than 6-10 employees while small businesses can have up to 500 employees. Even the combined value of assets and sales of a micro-business is less than $250,000 per year.
If you’re planning to start your own micro-business, then these are the five steps that you need to follow:
Step 1: Find a Sustainable Micro-Business Niche:
Unlike many online businesses that are created with a short-term intention or goal, micro-businesses are established with a more long-term view of creating a sustainable business plan. They could be started and managed by one person for all its life, but the aim is to create a long-term business model.
So, before you start your micro-business, spend some time analyzing how profitable or valuable your micro-business is in the long term. CircoSense Ltd., the winner of micro business awards 2017, focuses on an energy-saving device that embraces both economic and environmental opportunity for the business in the future.
Step 2: Hire Versatile Employees or Freelancers:
Because the aim of a micro-business is to reduce external costs and improve efficiency, it’s crucial for them to hire employees that are bringing the utmost value to the company. Implementing a performance improvement plan can help ensure these employees continually meet high standards.
In an article by Forbes, micro-influencer business owners discuss hiring freelancers for their business as it’s both cost-effective and productive. The freelancers themselves can be thought of as micro-business owners with little operating costs and systemized business plan.
Step 3: Plan your Cash Flow:
Even though micro-businesses cannot be termed as capital-intensive businesses, these businesses also require capital to produce goods and services. Strategically planning your capital and building your financial model well in advance can help you keep your business in the long-run.
You will have to analyze your profit margin ratios and industry’s economies of scale to create your financial model.
Step 4: Let Online Tools be your Best Friends:
The trick to successful micro-businesses is to automate as many tasks as possible. Using reliable tools for monotonous tasks like accounting, inventory management, social media marketing can be a real time-saver and give you extra time to manage complicated tasks.
Successfully used by small businesses, Circleboom is a complete social media management tool that you can use to grow and maintain your social accounts. With the publish tool, you can automate your social media posts, and analytics can help you dive-in to your post performance.
Step 5: Keep up with the Market Trends:
The founders of micro-businesses should always take the initiative to stay updated with current industry trends and make sure they are not swept away by bigger fishes in the long-run.
The lack of multiple employees and assets give flexibility to micro-businesses thus allowing them to quickly change with the trends, unlike their bigger counterparts. This is the advantage that micro-businesses have and they must leverage it when the time comes. For instance, when planning a business trip booking, micro-business owners can swiftly adapt to emerging trends in their field, ensuring they stay ahead of the curve while maintaining agility in their operations.
Step 6: Reward Your Employees
Employee motivation and satisfaction are crucial for the success of micro-businesses. Recognizing and rewarding employees for their hard work and dedication can significantly boost morale and productivity. Implementing unique employee appreciation awards can create a positive work environment and foster loyalty among your team members. By celebrating their contributions, you not only show your gratitude but also encourage continuous excellence in your workforce.
Ensure Security and Compliance
Security is very important for micro-businesses. Even small businesses can be targets for cyber attacks. Protecting your business and customer data is essential to build trust and avoid problems.
One way to protect your business is by training your employees in cybersecurity best practices is a must. They should know how to recognize phishing emails and avoid suspicious links. Teaching them to use strong passwords and protect sensitive information is also key. Another great way is to consider getting them certified in cybersecurity basics. You can find useful resources like CompTIA Certification Dumps to help with their training.
Worldwide Growth of Micro-Businesses:
Technology has given more and more individuals the capability to begin their micro-businesses and this infographic beautifully summarizes the growth and distribution of micro-businesses worldwide.
