Today the national hue and cry is for the entrepreneurs of America to step up and create new jobs for an ailing economy. So far there has been plenty of demand but few tangible acts to coincide with the cry. Government does not create jobs. It is only capable of new job creation when a sufficient volume of new businesses have been established to support the regulation of them. The taxes generated, in theory, are suppose to provide the tax revenues to pay for the regulators. Without the businesses there is no need to regulate, since nothing would be around to regulate.
Unfortunately if the industry fails the regulatory jobs still exist but are paid for from “general funds” not industry specific funds. Today the need is for private job creation simply to maintain the existing governmental regulatory bodies. Over time if new jobs are not created then old regulatory jobs will also collapse since the monies needed will not be there to sustain the overbearing regulatory climate the U.S. finds itself in.
Here is a new model that does help minimize the risk of new business creation and allows an incubator type atmosphere to test new business ideas.
The concept is sharing common business costs when there is common physical space. The reason for this concept is for most small start up businesses the costs are often disproportionate to the revenue potential.
In essence the staffing, utilities, marketing – inclusive of social media, AdWords, SEO and internet marketing, are all expensed proportionally to vendor entrepreneurs. When there is a large space the area within that space is divided into retail cubicles. The cubicles can be gerrymandered to accomplish specific retail needs. If the entrepreneur only needs shelf space at eye level then the space may consist of 1-100 shelves, 4 – 6 feet high, with a shelf that is 2′ wide x 4′ long. The rental fee for the space(s) includes the costs of the ancillary services to provide support for the retail expenses, i.e. labor to help the customers, fees for credit card services, % of the utility bill etc.
In the above if the entrepreneur were paying for credit card machine and processing fees there might be a standard monthly charge for the processing equipment and for this example let’s say it’s $300 per month. That single fee to the stand alone operator is $300 but when spread out over 50 business incubators it can drop to only what is needed for a credit card transaction which can be a few dollars, rather than a standard $300 fee “just in case” someone wants to use a credit card.
Part of the failure of small businesses to succeed is the small shop/store has to provide minimal customer service options just to be competitive. For the small store in the above situation that means $300 per month whether or not a credit card is used or not. By being in a business incubator those costs are minimized to the entrepreneur, yet offered as a service to the credit card customer. This becomes even greater when there are shared bathrooms, clean up costs for the store, and other similar type ancillary services that must be provided and do add considerable costs to the stand alone business.
Where this works extremely well is for the artist wanting to exhibit, the crafts person wanting to develop a new craft line, or an existing business owner wanting to test new offerings before deciding to commit to a larger line and spend more dollars not knowing if the products will sell well or not.
The business incubator allows freedom to not be tied down to a location, not worry about staffing needs, not sign a lease for some time period for a free standing location, and does allow more time to develop new ideas, explore new marketing methods, and be free to not be a slave to one’s business 24/7.
Bob G Johnson – Bob Johnson has created several new products, after receiving patents for new applications for existing health care problems, and markets them through the business he …
Business process modelling