Every entrepreneur who forms an LLC in Texas tries to pick a business they enjoy, but there are a few simple qualities of small businesses that will increase the likelihood of success.
Avoiding overhead and operating expenses is key, so a business that can be run from a home or coworking space is an advantage, according to BetterNetWorker.com. But not having an official office or warehouse means the business can't be one that requires large inventory. Providing a needed service - rather than a "wanted" item - is a recession-proof business that doesn't require storage space or maintaining expensive inventory.
Successful small businesses will also rely on more than just a few clients, and often look for additional revenue sources that are related to a primary business. This assures that no single factor can adversely affect a business. Additionally, providing a product or service that creates returning customers is a key to longevity.
Lastly, working with customers who pay immediately is always best, rather than attempting to collect on accounts at the end of the month.
Extending credit to customers is one way of increasing market share, but most experts advise businesses to only take this step once they have identified the loyal and reliable customers and have outlined credit terms, interest and avenues for collection.
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Posted: Sep 23rd, 2010