Before Setting Up Your Own Business You Need To Decide Between Franchising, Network Marketing And The Traditional Business Model
’Most people are either dead by age 65 or dead broke. The others have their own businesses’. So said a well-known businessmen and it is true. You are not going to get rich working for someone else except maybe if you are a banker or particularly gifted at sport or music. So let’s consider how best to start your own business.
It is generally accepted that there are 3 types of business model: the traditional one where you ‘fly solo’, relying on your own efforts with little or no help from others. Second, there is the franchise route whereby you take someone else’s successful idea and follow a blueprint. Full training will be supplied by the franchisor. Lastly there is network marketing.
There are advantages and disadvantages with each of the three types of business:
The ‘traditional’ business will need considerable self-funding as banks are reluctant to lend because this type of business carries more risk of failure in the early days. However, if you have expertise in a particular industry and maybe wish to set up as a consultant, you could qualify for funding if you can prove you have good contacts in that industry.
- Franchises have a high success rate. Banks like them because each franchise operation has a proven track record and thus the banks can accurately judge the risk, consequently they will lend money for this sort of start-up. However, all the support and training comes at a price: the initial entrance fee is likely to be very high, and a percentage of the business’s turnover has to be paid to the franchise company.
If you are looking for a business that requires little or no start up costs and has a good track record of success, then network marketing, also known as multi-level marketing, may be for you. You can start in your spare time and build slowly while you keep your main income. It is important to keep going; if you can persevere for more than one year you should find the business has solid foundations and should blossom.
Which type of business suits you best will depend on your experience and the amount of money you have to invest in your dream. If you are just fed up working for others and want to see your rewards match your efforts, then the best options would probably be a franchise or network marketing. Which one will depend on your financial situation. A franchise will require to work a full day, so you will need some cash to pay your bills until the business is making enough money. You will also need some capital for the initial fee, premises, and maybe staff. If you do not have that sort of money then network marketing is the way to go. Start in your spare time and keep at it. So many people give up just before their business is ready to really take off. Set your self a target of say one year. By then your business should be starting to bring in some decent money and you will see the potential for further growth.
Do not get the impression that network marketing is the ‘poor brother’ of the other two options. There are many people making a great deal of money from network marketing. You will find more information about network marketing at my website. Take a look at the commission rates to get an idea of the earnings that are possible. Of course there are many network marketing businesses to choose from. To learn more about our business opportunity take a few minutes to visit my site.