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Oct 14

Low Entry Barrier Businesses For Entrepreneurs

As far as doing your own business goes you need to find a way that can make money for you at least initially without spending a large amount of money. There are other set of entrepreneurs who take huge amount of risk by putting large amount of their won money into a new venture and also take huge amount of loans for setting up the business.

That said the first kind of entrepreneurs are always looking for businesses which have low entry barriers in terms of money as well as the know how or the technology involved. These low entry barrier means that you do not have much to lose if the business does not work well. However on the other side the low entry barrier means that a lot many other entrepreneurs will be working in the same niche as yours and it means more competitions.

In low entry barrier businesses the dedication, patience and perseverance in the initial years is what will distinguish the long term players from the non serious ones.

High entry barrier businesses require massive amounts of cash to start as well they may involve buying of specialized technology for starting a business. An example of a high entry barrier business is petroleum refining business or steel making business which will require huge amount initial capital outlay. Look at the number of steel making companies in the world and there would be just a few hundred only.

Some examples of low entry barrier businesses are home inspection business or the telemarketing business which require nothing but human resources. Similarly in the online world the internet marketing business or affiliate marketing business requires very less capital outlay.

In fact a lot of work at home businesses are low entry barrier businesses and sad but the true fact is that these have no distinguishable feature between one another. However the number of businesses that fizzle out is much much more because these businesses always have new competitors to contend with.

Entrepreneurs who opt for low entry businesses should make sure that they have something unique which they are selling. That uniqueness can be in the way that they are providing a service or they have unique concept applied to a conventional service. That way they can keep the competition at bay.

In today’s dog eat dog world it is becoming essential that low entry businesses need to have a competitive edge over others otherwise all the hard work and patience will go waste.

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