CAPE TOWN - Starting a business is daunting, especially since you do not want to make the wrong decision. We took a look at business ideas that may require a second thought.
When you think of starting a business, it is a critical decision to consider. This essentially requires critical thinking.
The business you choose to go into may determine your business success or failure. This is because certain businesses are not viable.
The retail business is tough, especially when considering discount stores that serve as big competition. These “superstores” threaten smaller retailers. In addition to this, Internet companies with the likes of Amazon and Superbalist directly threaten retail stores. This is because they have an added function, that of online shopping. This makes shopping more convenient for consumers.
In order to succeed as a retail business, a developed strategy has to be planned in order to differentiate your business from others.
An e-commerce site may sound simple but it is far more complicated. In order to open a retail business online, you need a website. This may be easy to acquire. However, websites work according to search engine optimisation (SEO). This means that the websites with the more popular keywords rank in the first page of search engine results. A retailer can purchase advertising to drive traffic though this is expensive. Also, traffic to a site does not necessarily mean sales.
Starting an online business is not simple. You have to think of ways to get people to visit your website. This is especially tricky as there is an influx of online businesses. Again, even if there is traffic on your site, converting this traffic into sales is another issue.
Second-hand store business
A second hand-store does not require investment in inventory which makes it a viable business idea. However, despite no investment in inventory, you will only handle goods on a consignment basis. This means that you do not own the merchandise. Instead, you display the goods and pay for it only after you have sold it.
Restaurant businesses have a general high failure rate. This is because loyal patronage may take years to build. Marketing could increase brand awareness of a restaurant. However, this does not mean that customers will flock to your restaurant. A successful restaurant ideally requires extensive restaurant experience and endless hours.
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