A micro business is a small, low-risk business that can be started easily without much investment. It’s also sometimes called a “Mom and Pop” company because only one or two people typically operate it.
What is a micro business?
You may have never heard the term “micro business” before, but chances are you know many of these businesses. A micro business falls under the umbrella of a small business, meaning it emplotes fewer than 10 employees and generates a revenue below $50K.
In general terms, a micro business is any small business that operates on a small scale. In terms of revenue, for example, this could mean generating between $1K-$50K in sales annually. In terms of employees, it could mean having anywhere from one to nine staff members.
What Are Characteristics Of Micro Businesses?
There are no set rules for what defines a micro business—it’s really up to each company’s circumstances and goals. Some characteristics might include low overhead costs (for example, no need for an office), low overhead expenses (for example, not hiring an accountant), or maintaining flexibility over when work gets done (since no one else is around).
Micro businesses are often seen as the ideal way to start a business since they don’t require much upfront capital but they have the potential to be very profitable. The owner can focus on getting their business off the ground and growing organically rather than worrying about paying off expensive equipment or loans. Micro businesses can be successful if they have a niche market and provide a product or service that meets an underserved need.
They can be ideal for people who want to maintain the flexibility of working from home while still earning an income. For example, someone might want to start a micro business that allows them to work from home while caring for young children or elderly parents.
Not all micro businesses are created equally, though. Some types of micro businesses are more lucrative than others. Here are the top ten most profitable micro businesses.
1. Online retailer
One of the most profitable types of micro businesses—an online retailer—is a great option for people with product knowledge who can sell items to others. For example, you could start an online business selling clothing or electronics.
2. Home-based online tutoring
Another popular option, home-based online tutoring, allows you to work from home and make money by teaching other people. You might want to consider this type of micro business if you’re an expert at math, writing, or another subject.
3. Carpet cleaning, window washing, or snow removal services
Offering services to home owners or retail businesses is something that can be done by one person or a small group of people
4. Mobile dog grooming and training business
If you have a dog, then this business is a great option. You can start by offering basic grooming services such as brushing and nail trimming, which don’t require special equipment or training. Then, you can add more advanced services as your client base and skills grow.
5. Selling handmade crafts on Etsy, eBay, or Amazon
This is a great option if you have a talent for creating things. You can sell anything from jewelry to clothing or other accessories. Setting up an Etsy account and selling your handmade items online is relatively easy, as well.
6. Freelance writing or editing
This business is a great option if you have a knack for grammar and spelling. You can start by offering basic editing services, such as proofreading or copyediting to local businesses and individuals. Then you can move on to more advanced writing projects such as technical white papers or blog posts.
7. Internet marketing or SEO services
This business is a great option if you’re good at developing online content and understand SEO. You can start by offering basic website maintenance services and move on to more advanced projects such as developing custom websites or creating SEO-friendly content.
8. Selling digital products online
This is a great option if you’re good at writing. You can start by creating a free blog and publishing articles that provide value to your audience. Then you can move on to more advanced projects such as creating e-books or video courses, which can then generate revenue.
9. Web design and development
This is a great option if you’re a designer or developer. You can start by offering basic website maintenance services and move on to more advanced projects such as creating and designing custom websites or developing mobile apps.
If you have expertise in a certain field, you can use that knowledge to consult with businesses on how to improve their operations. This could be a great side hustle because it allows you to work from home and set your hours. You may also consider offering consulting services online like Fiverr or Upwork.
A micro business is any business with a relatively small number of employees and low revenue. Some micro businesses specialize in providing services such as accounting assistance, while others sell products like clothing or food items. Knowing the differences between a micro business and a small business will help you make crucial decisions when it comes to growth and operations during the early stage of your business.