Small business ideas

Setting up a small business and making it a successful initiative is a task which needs a creative but smart mind. People are doing relatively small work but generating big money from it and on average it is more revenue than a professional is getting from a nice job.

Small businesses employ more people as compared to large companies worldwide so, entrepreneurship is basically the foundation of our economy. While this doesn’t means that small business don’t have any risks, however with proper management, vision and committed behavior one can conquer his/her dreams.

Small business ideas

If looking to start a small business it is always a good idea to understand your interest and skills you already have. By doing this you will identify any niche or category where you enjoy working and then simply use that for earning livelihood. The small business ideas which we share here are mostly home based and needs little capital to start over. However, the success depends upon your skill to find customers, making them happy to build longstanding relations.

1.      Opt for plumbing, electrician, or mechanic business

This all depends on your existing skills, if you have a passion of tinkering home problems then you should use it for earning a livelihood. But its not just as simple, first you have to select any specific niche and then pursue for a degree in that from any vocational institute.

2.      Accounting or financial planning business

If you have some interest in bookkeeping, accounting or tax filing then you must seek out to start accounting advisor business. The demand for financial adviser is increasing within recent years due to general public awareness about financial decision making process.

3.      Starting a fitness center or gym

Starting a coaching business is also a good idea if you have a basic knowledge of fitness. You can also start as an instructor if unable to start your own small business, it all depends on your interests and strengths.

4.      Working as a blogger or writer

Marketplaces like Upwork and Peopleperhour are great places to start over as a freelancer if you have any skills and interest in this type of work. This niche is a great choice in terms of starting a small business with a great edge to expand easily by hiring other freelancers.

5.      Selling your art work online

If you have any skills related to artwork, then you can use it this includes hand painting, crafts, pottery and so much more. You can setup an online store to sell your products or make any social network page to market your products.

6.      Opt-in for car detailing business

If you are a car enthusiast and have great knowledge or interest in car maintenance then you must consider car detailing business. Car detailing becomes quite popular small business recently, and still the demand is growing with time.

7.      Computer repairing or software services

Interested in computers and have some knowledge in IT, then you must consider different categories of this field to start up a small business. This include but not limited to photo editing, composing, spreadsheets, network security, software troubleshooting and even computer repairing tasks.

8.      Event planner

People having interest in event designing and management must consider this field. With a little finance one can easily start a small business by using his/her personal skills and knowledge to meet the customer requirements and expectations.

9.      Rental property management business

Typically areas where people only come to spend vacations often hire people for the property management and caretaking. Such a responsibility sometimes also require few maintenance duties but you have to collect rent, advertise any available property and manage other things on behalf of owner.

10. Starting with a teaching business

Having any exceptional grip on certain subjects or can speak multiple languages then you must consider starting over with a tutoring business. It all depends on you skill set, you can also consider any enrichment activity to get involved in a small business which may include music lessons, yoga, gymnastics, swimming etc.

Starting financial adviser business

Personal loan can be used for multiple purposes therefore people often use such financing for setting up a small business. You can either start from a home office or go for a cheap office location to meet with clients. To start your career as a financial adviser you must have a background in finance studies and its far better that you hold a professional certification like ACCA, CFA, or CIMA.

Due to an increase in public awareness about the financial decision making process, the trend for hiring a professional for financial advice is increasing day by day. Before this service was only used by wealthy people however, now it is widely used by middle class for different purposes. One must possess few characteristics if looking for starting financial adviser business;

  • Always be updated with latest technical developments and expertise, to cope with upcoming needs and demands from clients.
  • Good listening & communication skills to build relationships with clients
  • Excellent presentation skills to convey your message so that you can convince others

Steps to setting up a business as financial adviser

  1. Think about a name with which are going to start a financial adviser business. Typically people often use their personal names to start financial adviser business. But if looking to scale your business in future, then it is better to start your business with a generic name i.e. James Financial Advisory LLC.
  2. Register your business name with ‘secretary of the state’ with all supported documentation. Next you have to register your financial business with state department of business & financial regulation as it is mandatory for finance category.
  3. Hunt for a cheap but reasonable office space where you can carry out the necessary meetings with your clients. You will need a license from SEC if operating alone, however if working with another firm then they will share it with you.
  4. Make a plan for your business, identify the market segments to target, make goals for coming few months and then start following your plan.
  5. Start pitching different companies in market and making contacts with them by requesting information and then giving your point.
  6. Setup a marketing strategy and possible ways of doing so. Setup a website and ensure your online presence to engage clients and providing information about your services & expertise. You must focus on convincing your clients about ‘why they should work with you’ beside to general information topics.
  7. People often like to work with professionals to get the best in the market. Therefore it will be a continuous effort to keep your knowledge updated and may require to opt for any latest certification for building credibility.

Final Thoughts

All the above procedures are not very expensive except one, which is getting an office on rent. However, with proper planning and expert searching one can find a cheap place to start with. A personal loan amount can go up to $50,000 at max. people often use it as a source of financing for small business. Starting financial adviser business with such a small budget is considered as effective because there is no need to buy any inventory. In fact inventory is your skill and you just have to provide your expertise as services to your clients.


Factors affecting interest rate

Every personal loan applicant gets a different but personalized interest rate which is influenced by a number of factors. No matter you are looking for debt consolidation, car financing, or medical loan each person will get a different rate.

How my interest rate will be affected by different factors

Each lender has its own custom methods to measure the risk levels in any given application. A higher rate will be offered to people with bad credit or large amount then you actually deserve. The most considerable factors are;

  1. Credit profile
  2. Type of loan

Factors affecting interest rate

How interest rate is affected by credit profile or credit history

A credit report is used to determine the level of risk involved when giving you a loan. Each financing company looks in to different aspects of a credit report but here we will discuss the most crucial and important points.

  • Missed Payments & Charges: If someone have a recent history of skipping payments or late payments, then it is a strong indicator that he/she will do same in future. Lenders typically do not give any room for unexpected situation or anything else. So, one should make it sure to keep on track with the payments as it can affect you in future.
  • Debt/Income ratio: D/I ratio determines the monthly debt amount against your given monthly salary or income. This helps to measure the convenience and probability that you will pay off the debt in future.
  • Short credit history: This means that either you have very little credit history or no track record at all, so its very difficult to guess how the person is going to handle the payments.
  • Credit Utilization ratio: It is the amount of credit you are using against your available credit limit. If this ratio is higher than 30% then the lender typically consider a person less responsible and at higher risk of financial uncertainty.

All the above factors are considered as most important to take your credit score at the height of sky or down to earth. Few factor will influence your credit score in relatively short manner however, other may affect you badly and will pertain for a bit longer. However, credit score can be improved with some efforts but it varies person to person. People with short credit history often have to strive for a bit long to make some history i.e. for 2 or 3 years.

How interest rate is affected by loan type

There are two types of loans available in the market namely

  1. Secured loans
  2. Unsecured loans

If anyone applies for a secured loan while offering any collateral as a guarantee, then typically the lender will take such case with low risk involved as there is a guarantee in case borrower is not able to pay back. Such an applicant will get a lower interest rate. While on the other hand unsecured loans are easily available and the process is quite simple. Anyone can apply and get an approval for unsecured loan but he/she must needs an average credit score. As there is no collateral in such loan types therefore, the risk is higher and so is the rate of interest

Common secured loans

  • Home equity loans
  • Auto equity loans

Common unsecured loans

  • Personal loans
  • Credit cards
  • Payday loans


Your credit score and type of loan can affect your rate of interest directly. Therefore, it is always a wise move to go for debt consolidation and pay your credit card bills by using a personal loan at lower rates. Most often such moves help a person to save almost thousands on bills in terms of interest payments.

establish a small business by personal finance

establish a small business by personal finance

Getting approval for funds is almost impossible for a startup business, especially when there is no physical location or office is available. However, personal loans can be an option as they are available to individuals and there is no need for collateral.

Moreover, personal loan approvals are influenced by credit report and scores. Although you have to fulfill the eligibility criterion to get your funding however, you are not required to come up with a business plan as it is must with a business loan.

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