Building Businesses on a Micro-scale

Uncategorized 3 March 2010 | View Comments

One thing that I find extremely admirable about entrepreneurs is the way in which they aspire to take on the problems and opportunities of the world.  So many entrepreneurs aspire to create the next Google, Facebook, Twitter, WalMart, and *insert mega-successful industry leading business here*.  A bit of statistical analysis and a look at the amount of awesome and potentially great ideas now sitting TechCrunch Deadpool reveals that your chances of doing so are relatively low.  This of course is no reason to stop being optimistic, but it may be time to refocus your sights on building a business where the chance of success is more probable and still completely teeming with rewards.

Allow me to propose that you think as simply as possible, and build something small.  Building a micro-business will allow you to examine and experience things at their simplest and most basic level. While you may think you have the knowledge and propensity to launch a major project, the possibility of getting in over your head, getting discouraged, and becoming overwhelmed is extremely prevalent.  Working on a small project forces you to implement your knowledge and education as you build it.  As a result of the micro-management and micro-analysis, you will have a thorough understanding of the business, and should possess the ammunition to gradually build it into something bigger.

Starting on a micro-level also allows you to gradually build and scale, while still maintaining a razor-sharp focus on your core competency.  Essentially, focus on doing what you do – and doing it better than anyone else.  If your tiny business is making muffins, make the best looking and tasting muffins.  Assuming your business is based around a single product or service, you have the chance to really perfect the product, packaging (branding), and process and set yourself apart from any other competitors.  Once you get it right on a small scale, transferring your success to the bigger game should happen relatively easily, and with little lag.

Starting small will allow you to maintain simplicity.  Everyone likes to have options, however options always end up breeding indecision within the mind of a customer – and indecision ultimately leads to less sales as the customer walks away claiming they have to “think about it”.  Wouldn’t it be much easier to make up a customer’s mind for them?  By keeping your business small and simple you are leaving your customers with just one decision – to buy, or not to buy.  Assuming you are able nail the other factors, you should have no problem converting the curious into regular customers.

By now you are probably dying for a few examples of super-small business ideas that have thrived, so that you can jump on the micro-business train.  First, take a look at the original Gift app for Facebook.  Graphics were made in limited quantities, and were then sold for $1 each as friends sent them to each other.  Free gifts were sponsored by companies to alert consumers about new products.  Graphics routinely sold out, netting the business lots of easy cash for just a little bit of design work each day.  (Obviously, Gifts had FB backing them up – but finding a platform for your idea is essential, the more users on the platform, the better).  Second, let’s take a look at Auntie Anne’s Pretzels.  The pretzel giant was formed as a result of a Anne Beiler selling pretzels at a market stand in Maryland.  A few years later, the simple make-and-sell pretzel business turned into a pretzel shop franchise, and a major force in the quick snack service industry.

It is obvious from these examples that you don’t even have to think to hard about coming up with an idea.  As long as you are willing to be small, focused, and simple, your probability of success will grow.

What other examples of small, focused, and simple micro-businesses have you found?  What are your thoughts on starting on such a small scale, and taking growth gradually?

Photo by: *Suika*

View Comments on “Building Businesses on a Micro-scale”

  1. timtasker says:

    Great article, I share your thoughts!

    There is no need to reivent the wheel. In fact, the smartest thing is to look for gaps into your market and focus on how to improve those missing points your competitors are not paying attention to. By doing that, you will start having a business, you will make a profit that will allow you to pay your bills. You will increase your confidence in yourself and new business opportunities will arise.

    The next big project could knock on your door anytime when you don´t even expect it.

    I recommend you joining business related conversations on Startups.com Q&A. It´s pretty cool and you can place your own questions and share your expertise!

  2. Anonymous says:

    Great article, I share your thoughts!

    There is no need to reivent the wheel. In fact, the smartest thing is to look for gaps into your market and focus on how to improve those missing points your competitors are not paying attention to. By doing that, you will start having a business, you will make a profit that will allow you to pay your bills. You will increase your confidence in yourself and new business opportunities will arise.

    The next big project could knock on your door anytime when you don´t even expect it.

    I recommend you joining business related conversations on Startups.com Q&A. It´s pretty cool and you can place your own questions and share your expertise!

  3. timtasker says:

    Great article, I share your thoughts!

    There is no need to reivent the wheel. In fact, the smartest thing is to look for gaps into your market and focus on how to improve those missing points your competitors are not paying attention to. By doing that, you will start having a business, you will make a profit that will allow you to pay your bills. You will increase your confidence in yourself and new business opportunities will arise.

    The next big project could knock on your door anytime when you don´t even expect it.

    I recommend you joining business related conversations on Startups.com Q&A. It´s pretty cool and you can place your own questions and share your expertise!

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  1. BizSugar.com says:

    Building Businesses on a Micro-scale…

    While most aspiring entrepreneurs tend to think big, starting a business on a micro level can have it’s advantages. Starting super-small will allow you to build thorough knowledge and experience, keep things simple and focused, and naturally scale to…

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