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.
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 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.
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.
Although a network marking business may cost a lot less to start up, that does not mean your earnings potential is less than with the other business types. Your overheads will be a lot less, and your potential income is high. Take a lot at the commission rates in my chosen business. There is more information about network marketing on the website as well as information about that particular business opportunity.
