Small Businesses... Internet Businesses...

Another idea that popped up in my mind was the idea of setting up a business. Thus the thought process was what to sell (Product or service)? If product, where am I going to get my supply from? Overseas or Local? Who can give me a good rate? Such simple questions but so many answers.

Accountants can sell accounting services, advisory services, lawyers can sell legal advisory services etc. Bakers can sell cake and bread, chefs can set up a small eatery. Drivers can set up a delivery company, the list goes on and on. Such are the paths of those who have skills to sell.

Alternatively, one can import electronics from Japan, accessories from Thailand, clothes from China, etc... again the list is endless.

Next comes the question of who to sell to and how? Setting up a shop enables a simply way of advertising as people are more likely to see your shop and enter the shop. However, rent becomes a large overhead and might put you out of business earlier than expected. A small pushcart type of shop might be more cost efficient for small start-ups selling accessories and clothes. Thus, a shop would be an effective way to sell products/services as it provides a visual influence and creates a tendency for people to enter the shop and view what the business has to offer.

An online business is also feasible. However, due to the lack of brick and mortar, a visual impact is not present. As a result of this, creditability might not be present. Also advertising is more difficult. Although there are avenues such as Google Adwords, etc, the web is such a big network that one's personal website might be lost in all the other webpages which are around. A big plus point of having an online business is that the cost is extremely low. Furthermore, there is also a possibility of having overseas clients.

I have a friend who had an online blog selling handmade trinkets for a couple of dollars. She managed to make about SGD1000 per month selling such accessories to local and international clients. Although not alot of money, she was doing this during her schooling and it was additional allowance for her spending. I believe if she wanted to expand and continue this line, it would have been possible. However, as she is furthering her studies, time did not permit for her to continue.

I am very interested in this idea as it was always my ambition to be a business owner. However, the questions above have to be answered and I will have to spend much of my time thinking about them.

Analysis
Pros:
Own business, own time, own boss.
Potential to make large profits in the long run.
Doing what you like to do. (Sell handicraft if you like to make them, sell cakes if you like to bake them)
If a small start-up, small capital is required to set up a blog selling accessories.

Cons:
Some risk depending on how you start. As rental is a very high risk, a brick and mortar shop might not be advisable in the beginning. However some businesses require space to operate.
If the business is capital intensive and a bank loan is obtained, there is a bankruptcy risk if unable to return the bank.