Different Types of Small Business

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Deciding on what type of small business to choose is very crucial. You have to know what your passion is and what type of product or service you are able to offer. You also have to consider starting on budget you have, or can afford. There are several types of small business to choose when starting your won home based business but I chose to narrow down the choices into four general classifications:

1. Product Business

A product business is a type of business wherein you come up or create your own product. This product will then be distributed in the market. There are several things to consider in creating a product business: the financing, distribution and marketing. It is important to also have a product that is unique and useful or consumable so that it can be very sale-able in the market.  There are different types of products you may choose to develop, such as gadgets, food, equipments, beauty and bath accessories and much more. Your creativity is the limit. You also have to prepare your self with this risks involved in creating your own product, as compared to plain retailing.

2. Service Business

In this type of business, there are no products offered, instead service is being sold to customers. Therefore, manpower is of great importance when offering services. There are different types of services to offer your client. It can include, medical services, repair and construction services, consultation services, planning and management services, legal services and more.

 

3. Retail Business

Retail comprises of the sale of commodity or merchandise from a fixed location, such as a department store, boutique or booth, or by mail, in little or private lots for direct consumption by the buyer. Retailing may include subordinated services, such as delivery. Customers may be individuals or businesses. In commerce, a "retail merchant" purchases commodity or products wholesale from producers or importers, either directly or through a wholesaler, and then distributes smaller amounts to the end-user. Retail institutions are often called shops or stores. Retail merchants are at the end of the supply chain. Manufacturing vendors view the process of retailing as an essential part of their total distribution scheme. The term "retailer" is also enforced where a service provider caters to the demands of a large number of individuals, such as a public utility, like electrical power. Now that you already have the knowledge about the different types of small business, you can further research on the type of business you want to venture. You can continue scanning the topics on this site to provide you more information on the topic you want to research about.

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