Small Business Perspectives in the 21st Century
The prospects for 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 launch of new business lines. The second niche is assistance to 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 โ 80-90% of small businesses.
In other words, the vast majority of small businesses work as assistants to big business and are therefore dependent on it. For example, car services are assistants to manufacturers of cars and spare parts for them. The sphere of trade is assistants to producers of goods. Travel agencies are assistants to tour operators. The organization of marketing in a small business must proceed from this fact.
The prospects for small businesses 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 whole secret is that big business, economics, science and technology depend on ideas. This means that in the end, the prospects for small business are connected with the prospects for the dissemination of certain ideas.
What are the prospects for small business
It turns out that small businesses need to be very careful about which ideas are popular and which are not. For example, he made a bet on the sale of phones under the brand name Nokia. However, Nokia's management took and chose an idea that is not popular with buyers to build the market.
To maximize profits, it is advisable to choose the company whose products are in maximum demand.
As a result, phones that are the embodiment of this idea are no longer sold. The salon itself can do everything right, but the manufacturer cannot. As a result, if he does not reorient himself to help another big business, then he will go bankrupt. In order to properly reorient and not burn out, you need to study the ideas that are embedded in consumers.
Next, you need to make a rating of these ideas and then it will become clear which one to bet on. After that, it remains to figure out which of the representatives of big business is developing this idea and switch to trading in its products. To maximize profits, it is advisable to choose the company whose products are in maximum demand.ย
Small Business Perspectives in the 21st Century
Of course, it is hard to realize that small business is not independent and that the prospects of small business depend on big business. But there's nothing to be done, that's the way the economy works. In principle, there is nothing wrong with this, you just need to keep your nose to the wind, study consumers and identify the most promising ideas and deal with them.
The essence of business is that business is the process of materializing ideas.
In order to console representatives of small businesses, it can be noted that in the event of problems in the market and the losses of small businesses, they are small, unlike big businesses, where they are simply huge, and sometimes fatal. It can be noted that the prospects for small businesses are often better than for large businesses, because small businesses are very adaptive.ย
One big business started having problems โ you work for another. The main thing is to correctly understand the role of small business, and indeed the essence of business. The essence of business is that business is the process of materializing ideas. First, the idea is created, then it is introduced to consumers, as a result of which they become in need of the corresponding goods or services.
What are the prospects for small business
Without an idea, business is impossible. If you have an idea, then you have a business; if you don't have an idea, then 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, which means that the opportunity to build a big business is also not available. In general, of course, it should be noted that real business is the creation and promotion of your idea.
When you promote someone else's idea, it's more of a hired job than a business.
A small business can introduce new ideas and then become a big business or integrate with a big business, or promote someone else's idea โ which is helping big business. There is nothing else for a small business. Each path has its own advantages and disadvantages. Accordingly, everyone decides for himself which way to choose.
When you promote someone else's idea, it's more of a hired job than a business. A small business that is mainly engaged in promoting someone else's idea is a hired hand from the owner of this idea. This feature of a small business is due to the fact that it has few opportunities to promote its idea and it needs a lot of resources to promote it.ย
Real prospects for small business
Like any other mercenary, small businesses are usually content 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 introduced to, the more consumers will be created and the better prospects for small businesses are visible.ย
In other words, she created her own market, where she is a MONOPOLY
For example, there is a Samsung company. She generated an idea that can be voiced 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, she has created her own market, where she is a monopolist.
There is another company โ Sony. She generated an idea that can be voiced as โnew technologies at a high price" and is also developing it. The number of people in whom this idea is introduced, let's also say 100 million people. In other words, SONY has also created its own market, where it is a MONOPOLIST, where it has no competitors.ย
Small Business Financial Perspectives
If these companies did not have their own markets in which they are monopolists, they would not receive profits and would operate on the verge of zero profitability. The presence of their own market and, as a result, a monopoly position on it, gives these companies the opportunity to set prices above the level of profitability and make profits.
The owner of the underlying idea receives the most from the market
In turn, these companies have dealers. They develop other people's ideas, respectively, the ideas that Samsung and Sony are promoting, and not their own, with all the ensuing consequences. The owner of the idea that underlies it receives the most from the market, because he invests the most in its development and the idea โthanksโ him the most.
Of course, she will "thank" anyone who helps her develop, but she doesn't care if it's Edward, or it's David, or it's Sergei, or it's Akhmed, or another "small businessman." The idea will thank everyone, but they will all get very little, the less the more "small businessmen" help develop the idea they are pursuing.
Prospects for the development of small business
Unlike mercenaries who are hired by the owner of the idea for his business, the โsmall businessmanโ does not receive a salary from him, but usually lives on a percentage between the retail and wholesale price. The better he helped the idea develop, the more he earned. But here you need to understand that earnings are 100% proportional to the number of consumers in this market.
If there is only one small business on the market, then the entire amount of gratitude will go to him
If the number of consumers is 1,000, and the difference between the wholesale and retail prices is $100, then it is clear that the earnings of the entire market will not exceed $100,000. If there is only one small business on the market, then the entire amount of gratitude will go to him. If there are 10 businessmen, then they will have to divide gratitude by 10 and they will receive a maximum of $ 10,000.