So you want to start your own small business. My first question to you is why? Why do you want your own business? Knowing why will become very important to you when you have tough days – and you will.
I have mentored small business owners in the past and heard their reasons for going into business which included:
- I hate my boss and want to go into competition to him/her
- I want freedom
- I will make more money
- I just want to do my own thing
I do not believe any of these are good reasons to start a business. Hating your boss will not keep you going when the going gets tough.
You will almost certainly work longer hours and make less money in the beginning.
It is having a strong why that will keep you going.
If you are someone who just wants to do their own thing make sure you know what that is and how you will make money from it.
Assuming you have a solid reason why you want your own business and are prepared to work and learn then there are several options you have when contemplating starting a business. They include the following:
- Start a business from scratch
- Buy an existing business
- Buy a franchise
- Start a home based business which could be an MLM, Internet Marketing or Direct Selling Business.
Start a business from scratch
You can read more about it here. In summary you will need to be prepared to put in long hours, maybe not take holidays for sometime and be a bit of a jack of all trades to get it all done. It is not an easy road but can be worthwhile for some people although the stats of success are very small compared to the number of start ups.
It is highly unlikely you are skilled in all areas. Not many people are great marketers, sales people, bookkeepers, admin systems etc – be prepared to out source the areas that are not your strength.
I have gone this route several times and would not do it again. I think there are better options.
If however you are determined to start your own conventional business please get advice from a good accountant or an experienced business person who can mentor you. Have your numbers analyzed and be prepared to give it time and work to be successful.
Buy an Existing Small Business
Please read more details on this option by clicking here. In summary you need capital to buy an existing business. Have the figures scrutinized by an accountant and ask for back up information for all figures supplied.
Please think about it very carefully if you are putting your house or other assets at risk by borrowing.
This can be a viable option to become a business owner but in summary my message is “do your homework”.
I have also been this route in business. My husband and I bought into a business years back and it was a very successful business. It was also a lot of hard work!
This option does have certain advantages over the other two choices and please read more details here if you are contemplating buying a franchise.
In summary buying a franchise is often buying a job, or as I have heard said, buying a terrible lifestyle. You work long hours; have all the conventional headaches that go with a business and you paid big money for it.
Many franchisors will dictate the hours you work, what you wear and how you do business – a far cry from the entrepreneurial dream of freedom – and you pay top money for that. It does not appeal to me and it is one business model I have not personally ventured into.
Start a home based business
I think the best option is to build a business online with multiple income streams. I recommend one of the streams be in a MLM (also called Network Marketing) business. My reason is that it provides a residual income and that is something we all need to be building.
Network Marketing is my preferred business model. I think it is the fairest and most equitable model of business today. You can read more of my thoughts here. In summary these are some of the benefits of Network Marketing:
- Minimal start-up capital
- You use sweat equity to build an asset
- No asset risk (you don’t have to borrow against your house to start it)
- Virtually risk free
- Established systems and training
- No employees, premises, need to carry stock or debtors
- You support and train independent business developers
- Low overheads
In Network Marketing you are building an asset that is will-able and sale-able
- You can have true time freedom
- The business will eventually work without you
- It gives you lifestyle choices
And the most important – Residual Income. Income that keeps being paid to you month after month.
Some Quotes from the experts….
“Direct Marketing is a B Quadrant Business and it’s basically risk-free – giving all of us access to what used to be the domain of the rich. Today, the question is ‘do I really want to be rich’?” Robert Kiyosaki, entrepreneur, author
“Direct Marketing offers a low-risk but high return business system. I advise serious individuals to do your research and ‘put everything you’ve got into your product’. Genuine enthusiasm is hard to beat.” Donald Trump, entrepreneur, author
“Direct selling has become the wealth creation vehicle of choice for millions.” Paul Zane Pilzer, economist and author.
Start with the end in mind.
No matter which business model you choose please start with the end in mind. This perhaps applies more to home based business than if you take the plunge into a conventional brick and mortar business. In a home based business there is a temptation to treat it like a hobby. If you do it will pay you like a hobby.
Please pick up a copy of my free report Start Your Home Based Business With the End in Mind as you leave here. There are some essential tips there for you.
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