Have you ever had a business idea that you just couldn’t seem to get off the ground? Have you ever wanted to start your own small business or wanted to be a micro entrepreneur, but have been too afraid of not knowing where to start or how to make it successful?
The good news is, with the rise of social media and technology, there are now more ways than ever before for anyone to launch their micro-business. If you want to become a micro entrepreneur in your free time or full time, this blog post will show you how. Read More.
Section 1: What is a micro-entrepreneur?
If you have a great idea for a business but don’t want to run it full-time, you may be a micro entrepreneur. This article will help you understand what being a micro entrepreneur means and why it may be the perfect fit for your lifestyle.
When you have great business ideas but don’t want to run a big company, there’s a name for that. It’s called being a micro entrepreneur. These super small companies are generally defined as businesses that begin with minimal investment and have less than ten employees.
A micro entrepreneur benefits from the scheme of the same name (called auto-entrepreneur until 2014). which provides them with simplified formalities for setting up a business and a simplified method for calculating and paying social security contributions and income tax. It applies to sole proprietors who apply for it under certain conditions.
Thus, the microentrepreneur benefits in particular from:
– Tax policy for micro-enterprises;
– in the micro-social regime;
In some cases, VAT may be exempted. As a main or complementary activity, the scheme can include commercial, craft, or liberal activities.
The following expenses aren’t covered by the plan:
– Activities associated with the Agricultural Social Mutuality Fund (MSA);
– Real estate VAT-related activities (transactions between property merchants, developers, real estate agents, etc.);
-Management activities of a majority owner of a company;
– With a self-employed activity already registered and covered by the Self-Employed Social Security system.
The scheme for self-employed entrepreneurs was originally created by the Law on Modernisation of the Economy (LME) of 4 August 2008 and entered into force on 1 January 2009.
The Pinel Law of 18 June 2014 transformed it into a micro entrepreneur regime as of 19 December 2014. It imposed new obligations on it, such as registration in the Commercial and Companies Register (RCS) for traders or in the Trade Register (RM) for craftsmen.
The Pinel Law also ended the exemption from tax on consular premises fees and required businesses to pay their property tax in the second year of operation rather than from the fourth year. It also provided for the merging of the microenterprise tax system and the microsocial system from 1 January 2016.
Thus, since that date, sole proprietors falling under the microenterprise tax regime are automatically subject to the microsocial regime. Read More.
Since 1 January 2018, the turnover thresholds for access to the tax regime for microenterprises and micro social schemes have been doubled. They now apply to companies whose turnover in the previous calendar year or the year before last is not higher:
– 200,000 euros for an activity involving the sale of goods, objects, food to be taken away or consumed on-site, or the provision of accommodation;
– 70,000 euros for a service activity.
This regulation must be distinguished from the category of micro enterprises, defined in Article 51 of the Law on the Modernization of the Economy (LME) and clarified by Decree No. 2008-1354.
Section 2: The Different Ways to Start Your Micro-Business
These are just a few advantages and disadvantages of a micro business. But you will not know the difficulties and problems until you actually start the business. Here are a few steps you can take to get closer to your goals as a micro business:
Step 1: Define your mission and vision.
Mission and vision statements express the clear intent, values, guarantees, and purpose of your company.
Basically, the foundation of the company. Without a clear mission and vision statement, your company’s more detailed plans will not have a solid foundation on which to grow. A strong mission and vision are also attractive to customers and investors because people invest in companies with strong corporate values.
Step 2: Create an operation plan for your business.
There are many moving parts in a business, but setting goals and milestones with deadlines will organize any process. With today’s technology, you can use a tool like a business model canvas or a one-pager to solve any potential problems. A few questions to ask yourself are:
- How can I identify my key suppliers and partners?
- What are the locations of my micro business?
- How much do I need to spend on the resources I need?
- How is my business structured?
- How will I satisfy the needs of my target customers?
- How does my cost structure/revenue stream look like?
Step 3: Assess your financial situation.
Even though this has been broadly addressed in the previous step, you should prepare a balance sheet, income statement, and cash flow statement in the form of a detailed list. A thoroughly researched and prepared financial plan will help you when presenting to outside investors and lenders. Read More.
Step 4: Develop a marketing strategy.
A micro business requires a strong marketing strategy, especially if your team is small or if you are on your own. You should understand your customers and know how to reach them and provide them with the most value through sufficient research.
Step 5: Conduct research and tests on your product.
Prototyping and prototyping are strategies to understand how to improve your business from the customer’s perspective. Examples of research for small businesses include:
- Pre-launched, templated, or preview websites.
- Building an email list with offers.
- Making cold calls to vendors and potential customers.
When people say “no” to testing your product or service, it’s a good opportunity to ask for feedback to improve the customer experience.
Final Step: Register your LLC and get started!
Once you fully understand the finances, operations, and structure of your business. The final step is to officially register your business with the authorities (if you have not already) and start operating! Read More.
Section 3: How to be successful as a micro-entrepreneur (including tips and strategies)
A micro entrepreneur can travel to the moon and back to ensure their business survives in this tough and competitive market. With market trends constantly changing. So, it is absolutely essential for micro entrepreneurs to keep up with these ever-changing market dynamics. Additionally, keep their business skills up to date.
Micro-business owners are primarily focused on successfully closing their deals, keeping all records up to date. Moreover, protecting their business from any threats they perceive.
We have listed tips and tricks that can help small business owners succeed in this competitive market. Which is nothing less than a war zone of companies trying to outdo each other.
1. Plan it out on paper
3. Stay in touch with advisors
4. Identify your product/service’s demand
5. Promote Your Product’s Unique Selling Point
6. Monitor your business regularly
7. Delegate, empathize and collaborate
8. Be an optimist
Plan it out on Paper
Planning and shaping the present and future of your business is an important task for any small or medium-sized business.
Without a proper plan, everything is imaginary. Write it all down: Your ideas and strategies, goals and objectives, marketing and financial plans. Once you have your plan ready, implementing it will be much easier than you imagined.
The only thing that is constant is change. Make the necessary changes to your plan when they are needed. Do not follow your plan blindly.
Even the best-laid plans can contain mistakes that can ruin the idea that started it all. Adapt to the dynamics of the market and the current economy with a business plan.
Stay in touch with advisors
”Walking around with an ego is a bad thing. Having self-confidence is a good thing.”
All SMEs, especially new ones, need help in the start-up phase. Help in the form of valuable advice. Have a listening ear for your advisors, because you need them to share ideas, acknowledge successes and work through failures. Read More.
Keep your ego in check and listen to what your well-wishers tell you. Keep emotions out of it and do not take things too personally. Always remember that your advisors are only trying to help your business and you succeed.
Identify your product/service’s demand
Do market research and estimate how well your product will be received. This basically means that you need to estimate the demand for your product in the market.
This will give you the tricks you need to launch your product, reach your target audience, and set the right price for your product. If your product has an added advantage over the products already in the market, you can confidently consider it a winner.
Promote Your Product’s Unique Selling Point
This simply means that your product or service must be better than the others already on the market. Read More.
A run-of-the-mill product will not get your business far. Highlight the advantage that makes your product stand out from the competition’s existing products. When the buyer is convinced that your product is better than those already on the market, most of your work is done.
Delegate, empathize and collaborate
Numbers are of the utmost importance in any trade. Keep a record of all entries and exits, all purchases and sales, all profits and losses. Make important decisions based on past numbers, on values, and also on your instincts.
Delegate, empathize and collaborate
Be a good manager. Delegate tasks to the person who can do the best. Take on tasks that you can do well. Do not waste time on theories. Practical experience on the ground helps entrepreneurs much more than theories. Test everything before you put it on the market. Read More.
Be an optimist
In the words of William James: “Pessimism leads to weakness, optimism to power”.
Stay hopeful and work to improve your product. Do not let a few initial setbacks take away your confidence.
Section 4: Which Business Comes Under Micro-Enterprise or MSME in India?
Reach out to the Complete List of MSME Businesses
There are a large number of enterprises in a country including service enterprises, manufacturing enterprises, and trading enterprises. However, the government has not thought of including all enterprises under MSMEs.
So, are not you curious about the MSME enterprises? If yes, then consider yourself lucky because we are providing you with all the information and latest updates in this article.
Here’s a complete list of MSME businesses.
List of MSME Businesses
- Leather products.
- Moulding – This includes products like combs, umbrella frames, plastic toys, etc
- Natural Fragrance and Flavours.
- Placement and Management Consultancy Services.
- Training and Educational Institute.
- Energy Efficient Pumps.
- Beauty Parlour and crèches.
- Auto repair services, and garages.
- X-Ray Clinics.
- Equipment Rental & Leasing.
- Photographic lab.
- Servicing of Agricultural Farm Equipment. This includes tractor, pump repairing, ring boring machine.
- Back Office Operation Relating to Computerised Data.
- STD/ISD booths.
- Retail Trade with low Capital.
- Multi Channels Dish cable T.V. with Dish Antenna.
- Laundry and Dry Cleaning.
- Toughened Metallic Ware.
- Automotive Electronic Component products.
- Electronic Surveillance and Security.
- Mechanical Engineering Excluding Transport Equipment. This is inclusive of steel almirahs, cocks, and valves, wire cutters, etc.
- Engineering and Fabrication.
- Recorders, VCRs, Radios, Transformer, Motors, Watches.
- Micronutrients For Plants.
- Active Pharmaceutical Ingredients and Ayurvedic Products.
- Khadi Products and Hosiery Products.
- Handicraft activities like Spinning, Weaving, Artisans.
- Printing and other products made of paper.
- Coir Industry.
- Furniture and wood products.
- Poultry Farm.
- Bicycle parts.
- Stationery Items.
- Call center.
- Rubber Products.
- IT Solution Provider. Services include creating a server bank, application service provider, smart card customization, service provider, etc.
- Testing Labs for industries.
- Auto Parts Components. Which includes horn buttons, door channels, wiper blade components, battery cell tester.
- Ceramics and glass products include roofing tiles, glass flooring tiles, granite, etc.
- Retail and wholesale business.
With an aim to strengthen the MSME sector. The Minister for MSME and Road Transport and Highways, Shri Nitin Gadkari has announced revised guidelines for MSMEs. With the inclusion of retail and wholesale enterprises in the MSME sector.
Section 5: Conclusion
Entrepreneurship and innovation are often required to succeed in sustainable business practices. This chapter provides an overview of micro entrepreneurship and innovation in the context of small businesses.
The discussion is particularly relevant to small businesses that focus on providing new products and services in response to societal concerns.
The importance of entrepreneurship and innovation also applies to companies that are changing the way they produce products and services.
The latter companies can use innovative practices and entrepreneurship to establish their brand name and become market leaders. After that, do things that create shared value for society and their companies, and over time also contribute to changes in practices in their industry.