Owning a Traditional Business
I was a traditional business owner for many years, at first as a sole trader and then in businesses with my husband and other partners. I have chosen now to have a home-based business as a Network Marketer.
I did not understand Network Marketing at first and had a negative attitude towards it. That was until, in my tax accountant days, I had some network marketers as clients. I started to understand it was a genuine business model. It was not until years later, after a major business failure I looked further into the model.
The fact that you can build a residual income and use leverage to build a good income if you work at it caught my attention.
There are some traditional businesses that give you a residual income such as financial services where you are paid trail commissions. Most businesses do not have recurring income, so you are always dependent on the next sale or next consulting role. If you stop working so does the income. You are effectively trading your time for money.
Having owned several traditional businesses I am only too familiar with that sick feeling in your stomach when you think about your overheads. Things like:
- Rent of premises
- Salaries to pay (we had over 70 at one time)
- Superannuation, insurances and other staff expenses
- Stock for many business
- Debtors
- The start-up capital required
- And too often a big mortgage against the family home to fund it.
All this can lead to sleepless nights. Even when income is flowing in and things going well you are always conscious of your commitments. You need the cashflow to pay your overheads and staff.
One of the other features of traditional business I do not like is that fact the staff you have trained can up and leave you.
Many times, in our businesses of the past I felt like I was trapped and working to provide employment, it was not always fun for me.
The Network Marketing Model
Network Marketing offers many advantages over a traditional business model.
Here 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 – your success is up to you
- Established systems and training (with most companies)
- No employees, premises, need to carry stock or debtors
- You support and train independent business developers
- Low overheads
- You can have true time freedom
- Lifestyle choices
Like any other business a networking marketing business requires work. The business can be built to the level you desire. Many people do the business part time while others choose it as a full-time career. Like any profession you need to learn the skills and put in the work.
In Network Marketing you are building an asset that can be passed on to generations to come. In many companies your business can also be sold. It is a true legacy business.
Traditionally people built their Network Marketing Business offline by word of mouth. Today with the internet we can use online methods like social media to build our businesses. The online world gives us the ability to build global businesses.
Even if you love your traditional business, unless it gives you a residual income you may wish to consider the addition of a network marketing business. You can do that as a plan B on a part time basis.
Summary
As I said I have owned traditional businesses. I love business. At this stage in my life the Network Marketing model is my choice.