Micro means small so microbusiness is also known as small business. This word is mostly used in the UK because there are a lot of microbusinesses in the UK, whose staff is not more than 10 people.
Microbusiness contains a small amount of investment, less number of employees, less risk, taking loan at interest from bank, lenders or other financial institutions. Micro businesses are not found in any industry area but are found in local areas, street areas, and colonies. Microbusinesses can be set up in the same areas where there is more settlement so that more people will come.
Benefits of microbusiness
- Need less amount of capital
- Less risk with more profit
- Need less amount of stock, goods or services
- Need less no. of employees
- Don’t need to go outside for dealing
Types of microbusiness
Microbusiness can occur in any sector:
- Retail or wholesale
- Construction sector
- Health sector
- Education sector
- Social sector
- Entertainment sector
Everyone can do microbusiness, just a little thinking capabilities should be strong and the customer should come to be attracted towards your product.
How can we start microbusiness?
We can easily start microbusiness by just follow some major startup steps:
- First, we need to decide what type of business we can start consulting from other micro businesses.
- Arrange capital for investment in business requirements such as goods or services.
- Then we need to decide a location for our business such as land.
- Need a license for business.
If we are thinking of taking a loan so we have to approve our loan from state or LLC corporations.
We also have to fill legal formalities and pay taxes such as property tax, income tax, sales tax and other business taxes.
Microloan for Micro Business
If we don’t have enough capital to start a business so we can take a loan from the Small business administration, this administration provides a loan facility to micro owners and offers guidance of business planning. They provide a microloan up to $50,000 and microlenders have the right to take all the decisions related to the microloans, so for that, we can get a list of immediate lenders we can contact a small business administration office to know about loan procedure.
Some examples of microbusiness
- Online web business
- Web designing or graphic designing
- Digital marketing
- Coaching centres
- Fitness centre
- Loans provider services
- Financial advisor services’
- Tour and travel services
- Retail and wholesale services
- Provisional store
Is micro business and small business different?
There is no major difference between micro-business and small businesses, everyone is different only by their name because nowadays the new trend is to call small businesses a micro business, and this name is also known by the UK. These micro-businesses have started from less than 6 employees with low capital and most owners didn’t take any loans. This microbusiness can do youngsters as a side business along with studies with low investment, low risk. Most of people do micro business for their own personal interests. We can learn so many things from micro business such as how to run a business in the business world, how to manage employees, how to compete with competitors and so many things.
If we do micro business and we need amazing accounting software to keep records of business so many accounting software are available, so we can choose from them. This accounting software allows clients to make payments through social payments such as PayPal and so on.