Starting up your own small business is already a risk. Doing so during a down economy makes it an even bigger challenge. However, that does not mean that should you should not give it a try. As long as you have a well-thought-out plan in place, you can still launch a business and be successful right from the start. Initially, this may mean making a little less than you anticipated, but that small â€œwelcomeâ€ discount you give clients now will lure them into a long and fruitful relationship. Just remember this above all elseâ€¦ there is no stronger endorsement of a business than a personal referral.
The national averages for an appliance repair business are very promising. Now, keep in mind, these numbers (via Starter Story) are not coming from only one-man shops, but all appliance repair businesses. Point being, if you will be the only employee, these numbers will come across a bit inflated. They will, however, give you a decent idea of where your margins are going to be.
Average Monthly Income: $100,000
Start-up Costs: $17,800
Gross Margin: 32%
Time to Build Business Up: 210 days
Average Product Price: $125
Best Building Tools: Bold Brain, Wayfair, and Groupon
Naming Your Business
Far too many businesses try to get cute when they name their business, which is a mistake. You want the name to be short, memorable, and related to the business. The business should also be very easy to spell, as you do not want to send them to someone elseâ€™s business if they put in the wrong website address because you decided to use a K instead of a C in the spelling.
Creating a Slogan, Logo, and Website
You may want to eventually go big with a website, but that is definitely not necessary during the early stages. You need something clean and effective for customers to find you and be able to leave reviews via Google and social media pages. You can do this yourself, but it is probably best to leave this to a professional designer so they can tie all your pages together on the website. Even with that, however, spending more than $2,000 or $3,000 is just too much at this stage of the game.
Your slogan needs to reflect the overall mission of the business. It should answer questions such as the problems you solve, specialties, etc. The logo also needs to be effective in relaying the overall purpose of the business. It should also stand out, so take the time to get one custom-made that is not done with clipart as far too many of these â€œgraphic designâ€ companies use today. Your logo should be able to stand the test of time and be appealing to your desired customer, so do not try to outthink yourself on this one.
Once you settle on a logo and a slogan, test it. When I started my business, we probably went through a dozen slogans and four or five designs before settling on the final version. And get feedback from people that are willing to tell you the truth, not friends and family that will cheer on just about anything you do.
So, that is it for this week, but we will put some more tips together next week and post them for you!