Many entrepreneurs like to dream big as they’re first launching a business—they picture their business with their own office, retail location and staff. Dreaming big is great, but starting small gives you the opportunity to test out your business ideas and perfect them before investing too heavily. Below are some ways to start small and test your business idea.
You can find ways to start small even if your business doesn’t involve working at a desk--even food-based businesses can do it. Many states allow you to make and sell foods that do don’t require refrigeration from your home. Check with your state to see what rules are required to make it work. You can also think about starting with a food truck or by catering events. If your state or your product requires a commercial kitchen, look for a kitchen incubator, a restaurant partner or a community kitchen that you can use before building out your own space.
Thinking of starting a retail business? Starting small can work for you too. With online sales growing everyday, it’s easy to find ways to grow your brand before investing in an expensive lease. You can try selling on a platform like Etsy or Fulfillment By Amazon or at local fairs and farmers markets, which allows you to build brand awareness and get immediate feedback on your product. You can also consider pop-up retail to avoid the start-up costs of a physical location.
While your expenses are low, you can test out your idea and do some market research. Consider the following questions:
Starting small allows you to add or change products with relative ease and get immediate feedback.
Once you’ve earned your first few customers and have perfected your product, go back and review that business plan. You might just be ready to take the next step by securing financing, leasing a retail space or hiring employees.