Running Your Own Business: The Options
Very few people ever got rich by working for someone else.
Leaving aside pop musicians, sportsmen and similarly gifted
people, the only way to acquire wealth by work is to build a
business of your own. The type of business you decide upon will
depend on: a) how much money you have available as start-up
capital and working capital; b) your business idea; and c) your
confidence level.
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 business type has its pros and cons.
- The traditional business requires considerable financial
input, either from your own resources or part-funded by your
bank. You may need to rent premises; buy equipment; hire staff;
pay for advertising, brochures, stationery, and stock. A
frighteningly high percentage of this type of business fails in
the first year. To succeed you need: a good idea, considerable
financial backing, good health, an understanding spouse, and
stamina. If you do succeed you will own the business outright
and benefit from all the profits.
- 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.
- 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.
So which type of business is for you? If you wish to provide a
service or product where you have previous experience from, say,
a former employment, the traditional business will be probably
be the best choice. However, if you are just tired of working
for someone else and making them rich and wish to strike out on
your own, then a franchise or network marketing must be the
preferred option. The choice then is determined chiefly by the
funds you have access to, and the time and effort you wish to
put into your enterprise. A franchise will require substantial
funds and 100% commitment. You are jumping in at the deep end,
although the franchise company will provide training and support
to help you to swim. On the other hand you can ease yourself
gently into network marketing by starting part-time while you
continue with your current employment, building your business by
ploughing back profits if necessary. Persevere and there will
come a time when the income from your own business will be
sufficient to support you financially. You will then be able to
leave your employment and concentrate on your business, spending
more time on it or enjoying considerable free time with your
family.
About the author:
Tony and Katy Luck run two successful network marketing
businesses in the UK: a team of reps for Avon cosmetics, and
as independend distributors for a company offering the best value in electricity, natural
gas and phone calls.
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