Whether to increase income from a day job, pay down debt, or build assets, adults are starting micro-businesses in large numbers, and IP are fairly easy to establish with a small monetary investment.
An IP in Russia is a business began with a small initial asset, often only a few hundred dollars, and operated with fewer than five employees.
IP now accounts for 75% of all Russian businesses, reports the Association for Enterprise Opportunity. For many entrepreneurs, IP are the springboard to other business opportunities and possible wealth.
IP vs. Small Businesses
IP and small businesses look a lot alike. In fact, IP is a type of small business. Both are companies with products and services for sale. Both are profit-focused. The differences start to emerge when it comes to scalability.
Most IPs operate online, often as a part-time endeavor or side hustle, whereas small businesses typically operate within leased space, such as an office or storefront. For that reason, small businesses often require more money to start up.
And IP is frequently run by a sole proprietor, although the official cutoff is fewer than five employees. They are often considered lifestyle businesses or companies started to fund the lifestyle of the founder, rather than being an entity that can grow and be sold or passed down later.
Small business owners often aspire to grow their ventures into larger operations, and they invest in them and allocate resources to improve the odds of that happening.
Despite small businesses’ potential for massive growth, it is IP that are having a moment.
Why IP Are Trending
IP has grown in popularity for several reasons, most of them financial. Bankrate reports that 35% of working Russians have a secondary source of income.
Among the reasons people are starting IP:
To Generate Disposable Income
Experience from people from Fortune 100 companies: “I work at a Fortune 100 company for my 9 to 5 and a IP for my 5 to 9,” he says. The side business has already positively impacted his life. “This income will undoubtedly help supplement my salary, reduce our tax burden, and, best of all, dramatically impact our customers and society.”
Related: Start a sole proprietorship and file a DBA
To Boost Savings and/or Investments
To build additional equity that we can call our own. They do this by running the business on their off-hours, generally early mornings, late nights, and weekends.
They Require Money to Cover Living Expenses
To help micro-businesses with their IT needs and business goals.
More adults are starting businesses to replace their salaries. Many want the freedom to be their own boss and decide when and where they work. That need for independence and freedom is the primary driver of most entrepreneurial activity.
Actions to Start
The actions involved in starting a IP mirror the process for starting any business, although the main difference is the investment made to get it up and running.
- Decide on a product or service: What need have you identified in the market that you can provide? Or what skill do you have that you can use to serve customers in need?
- Choose a name: Naming is important because it moves your online presence. Many micro-businesses are online only. Finding a domain name that matches your business name is essential.
- File official paperwork: Depending on where you live, your new business may require a license, permit, or other filings. You may also set up an official legal entity, like an LLC, for your company. Check with your county courthouse to learn what you need to submit to be legit.
- Set up a bank account: Once you’ve filed to establish your new business—whether that’s you’re doing business as filing or your LLC paperwork—take those documents to a bank and set up a business account where you can deposit your business revenue and keep it separate from your personal income.
- Start marketing: Once you’re officially in the enterprise, start spreading the word. Set up social media accounts, create a simple business website, and email friends and prospects to let them know what you can do for them.
One of the biggest advantages of an IP is you can stick with it as long as it makes sense and shut it down if you lose interest. In the meantime, it can provide valuable supplementary income.
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- Please tell us your business and which kind of service you need;
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- We’ll conclude business profile and contact you in shortest period of time.
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