In a world dominated by big businesses, starting a
small business may seem daunting and may even be trivial. But in the end,
it could be the small size of the business that makes it a sustainable new business.
The cost of establishing a new business can be really high. Sometimes, just the
location for a business can cause an entrepreneur who plans to open a new business
around $ 100,000. Not every
new business listing can afford this.
That’s what business analysts are now suggesting that more entrepreneur open small
sized new businesses. According to business analysts, the small size of a new business
gives it the advantage of flexibility. For instance the cost of setting up a business
at a kiosk in a mall is much less than compared to the cost of buying or leasing
a property for the
new business.
The upfront investment for a kiosk or a cart ranges from just $2,000 to $10,000,
which is much less than the cost of renting space. In addition, license agreements
for carts and kiosks are shorter and are usually renewable every month up to one
year. So a
business entrepreneur can come in and try it out for a few month, and if
their product isn’t working, the entrepreneur can shift to a new product line or
close up shop and move to a new location.
The cost of leasing out a kiosk for the new business depends on the location for
the new business. In general, the cost of leasing out a kiosk in very crowded malls
can be around $ 800 per month. The rate is usually dependant on the volume of traffic
that the mall gets. Some malls charge a percentage of the sales in addition to monthly
rent.
Using a cart for the new business is also a great way to reduce the operating costs
of the business. Of course, this only works when the entrepreneur is working in
the food market. Carts come in many sizes and styles with varying capabilities.
There are carts for specific types of food, some with refrigerators, grills, steamers–even
small ovens so an entrepreneur can bake on location.
An entrepreneur can also buy a second hand cart. However, the business owner needs
to inspect the cart at first to see if it meets the business needs of the particular
business. Sometimes, getting and fixing a second hand cart may be more of a nuisance
and could cost more than buying a new cart. Before deciding to get a kiosk or a
cart, an entrepreneur first needs to estimate if this is the best choice for the
new business. The choice of business location will also affect the amount of
startup capital that a business owner needs to open a new business.