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You’ve reached a point in your life where you want control and recognize the value of being your own boss, running your own business. Many choices and options will present themselves. Wherever there is money involved there will be both booby traps to avoid and advantages to look for. Discover the three essential options for a
successful startup entrepreneur
normal ‘bricks & mortar’|business[/spin]Multiple options and choices will present themselves. By this I mean something like a ordinary retail store or other business that sells products and perhaps also offers services around that product set.
A business of this nature requires a significant amount of startup funds. There would be items to purchase such as inventory, tools for the services and perhaps a shop fit in the case of retail or a workshop for the services component. This would typically involve signing a lease for premises…
Depending on the market chosen even a car may be needed to perform the services or product delivery. Being to tied to a physical location will make the business feel like a binding job .
We haven’t even explored the possibility of employing staff which, in all likelihood will be required. This comes with it own set of responsibilities, compliancy and ultimately stress.
On the upside, potentially income on services can be good if well managed however, unless you want to be that manager you will need to attract, employ and retain a top person for that role also.
In summary:
Capital & Cash flow
Ongoing overheads
Location and time restrictive
Potentially good returns from services
A franchise can look like a great opportunity and many a fledgling entrepreneur will think he has found his or her solution. The franchise company usually has a proven business plan, with market research, suppliers, sometimes even included is demand generating advertising, and finance facilities.
These are all formulated into a working business solution that you can pickup and run, and that’s great! Do not be surprised at the extend though of the premium asked for this.Perhaps once off, perhaps as a royalty as a ratio of revenue. Occasionally both may be levied.
Also a franchise is often tied to a physical area so you again could be confined in the same way as a job may restrict you.
All in, a franchise could be summarized as ‘purchasing a job’. It’s normally a business that works, but at a cost.
In summary:
Capital & Cash flow
Ongoing overheads, Royalties or fees
Location and time restrictive
Proven business system with support
Now what about the direct sales market? Depending on the structure sometimes this can also be labeled as Network marketing. I would guess this may be the least researched entrepreneur idea or the three discussed, at least in the beginning, however once discovered it can be quite attractive.
Direct sales / Network marketing is where you earn money by representing a company’s products and sell them in a drop ship fashion for a commission. The business is scalable by sponsoring additional distributors who would do the selling and recruiting in the same way. And you may even earn a partial commission from their sales as well…
Note though these distributors would be independent businesses and not formally employed by you, so they would not come with the responsibilities of employees. Importantly as they will directly earn for you, it would be in your interest to teach them effectively.
You typically don’t have to carry inventory, so you won’t have to bank roll that or provide premises to store it, or transport to deliver it. Customer service, administration and the like are for the most part handled by “the company”. Similar to a franchise a lot of proven, working business information and systems will be available to the business owners…
The person who enrolled you into the business may also be incentivised (as described above) to get you and keep you in profit and this to would contribute to a rapid successful result.
In summary:
Staff and stock freedom.
Low overheads.
small or no phyisical area restrictions or limitations.
Scalable.
Proven / Working business model with support.
Out of the 3 business models discussed the direct sales seems to offer the best chance of the best success with the least restrictions.
As a Business & Wealth strategist,Richard Baldock leads by example, teaching self-motivated people to become entrepreneurs and achieve their income goals working for themselves.
Richard Baldock is also the author of a FREE 4 day e-course “24 Rules for Success in Business”. Feel free to visit his blog at RichardBaldock.com – Connecting Entrepreneurs with Information to Achieve Success
Get helpful things to know about the topic of one way links – please make sure to read this publication. The time has come when concise information is really within your reach, use this chance.
