Entrepreneur Ideas - Don't let the wrong business ruin you.
So you want to start a business, be your own boss, step up and be in control of your life. You have many choices and options. Wherever there is money involved there will be both pitfalls to avoid and advantages to look for. Discover the three essential options for a successful startup entrepreneur'
Often a typical entrepreneurial idea would be a conventional 'bricks & mortar' business. By this I mean something like a typical 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 capital. 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 vehicle may be needed to perform the services or product delivery. The business would be a bind as it is tied to its physical locale and may feel like a job after not very long.
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, compliance and ultimately stress.
On the upside, potentially margins on services can be good if well managed however, unless you want to be that manager you will need to find, employ and retain a top person for that job as well.
In summary:
<UL>
<li>Capital & Cash flow
<li>Ongoing overheads
<li>Time and location restrictive
<li>High profit potential from services
</UL>
A franchise can look like a great opportunity and many a budding 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! You will however, be expected to pay for this. Perhaps once off, perhaps as a royalty as a percentage of revenue. Occasionally both may be levied.
Also a franchise is often tied to a physical area so you again could be restricted 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:
<UL>
<li>Capital & Cash flow
<li>Ongoing overheads, Royalties or fees
<li>Time and location restrictive
<li>Proven business system with support
</ul>
Now what about the direct sales industry? 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 initially, 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 recruiting additional distributors who would do the selling and recruiting in the same way. And you may even earn a portion 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 coach them well.
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:
<UL>
<li>Stock and staff freedom.
<li>Low overheads.
<li>Low or no restrictions to a physical area.
<li>Scalable.
<li>Proven / Working business model with support.
</ul>
Out of the 3 business models discussed the direct sales seems to offer the best chance of the best success with the most freedom.
As a Business & Entrepreneurial venture strategist,
<a href="http://RichardBaldock.com">Richard Baldock</a> leads by example and mentors self-motivated people to become entrepreneurs and achieve their income goals whilst working for themselves.
<a href="http://RichardBaldock.com">Richard Baldock</a> The author of a FREE 4 day e-course "24 Rules for Success in Business". Visit his blog at RichardBaldock.com - Connecting Entrepreneurs with Information to Achieve Success for you copy and to subscribe to future related and useful information for entrepreneurial success focused minded people.
Often a typical entrepreneurial idea would be a conventional 'bricks & mortar' business. By this I mean something like a typical 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 capital. 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 vehicle may be needed to perform the services or product delivery. The business would be a bind as it is tied to its physical locale and may feel like a job after not very long.
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, compliance and ultimately stress.
On the upside, potentially margins on services can be good if well managed however, unless you want to be that manager you will need to find, employ and retain a top person for that job as well.
In summary:
<UL>
<li>Capital & Cash flow
<li>Ongoing overheads
<li>Time and location restrictive
<li>High profit potential from services
</UL>
A franchise can look like a great opportunity and many a budding 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! You will however, be expected to pay for this. Perhaps once off, perhaps as a royalty as a percentage of revenue. Occasionally both may be levied.
Also a franchise is often tied to a physical area so you again could be restricted 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:
<UL>
<li>Capital & Cash flow
<li>Ongoing overheads, Royalties or fees
<li>Time and location restrictive
<li>Proven business system with support
</ul>
Now what about the direct sales industry? 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 initially, 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 recruiting additional distributors who would do the selling and recruiting in the same way. And you may even earn a portion 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 coach them well.
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:
<UL>
<li>Stock and staff freedom.
<li>Low overheads.
<li>Low or no restrictions to a physical area.
<li>Scalable.
<li>Proven / Working business model with support.
</ul>
Out of the 3 business models discussed the direct sales seems to offer the best chance of the best success with the most freedom.
As a Business & Entrepreneurial venture strategist,
<a href="http://RichardBaldock.com">Richard Baldock</a> leads by example and mentors self-motivated people to become entrepreneurs and achieve their income goals whilst working for themselves.
<a href="http://RichardBaldock.com">Richard Baldock</a> The author of a FREE 4 day e-course "24 Rules for Success in Business". Visit his blog at RichardBaldock.com - Connecting Entrepreneurs with Information to Achieve Success for you copy and to subscribe to future related and useful information for entrepreneurial success focused minded people.