Many people have a yearn to start their own business, and it is true that it is the only way an individual can get rich unless he or she is gifted at music or sport, or maybe works for a bank and gets a large bonus. So let us examine the various options when staring a business.
There are three types of business: 1) the traditional one in which you are reliant solely on your own efforts; 2) a franchise where you follow a proven idea and receive considerable training and back-up from the franchise company; and 3) network marketing.
Each type of business has its advantages and disadvantages:
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.
If you tell your bank manager that you intend to trade as a franchisee you should expect to see a smile on his face. Banks favour franchises as others have already proved this business can succeed, and banks have a track record to measure the risk. So funding should be forthcoming. However, you will need to find the franchise fee which could be considerable, and you should expect to give the franchisor a percentage of your turnover – not profit, turnover.
- Network marketing, also known as multi-level marketing, has many advantages and few disadvantages. The entrance fee is low and the ongoing expenses are even lower. A network marketing business can be started in your spare time – in fact that is the best way to approach it. Start small, and keep at it. The secret is perseverance, get past the first year and you should find the business has a sound foundation from which you can build a serious income. It is said that 95% of those who survive ten years in network marketing become wealthy beyond their wildest expectations.
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.
