Often a typicalentrepreneur ideas will be a formal’bricks & mortar’ business. By this I mean something like a typical retail store or other business that sells products and peradventure offers services around that product set. An enterprise of this nature requires an important amount of startup capital.
There would be items to acquire for exert inventory, tools for the services and perhaps a shop fit in the case of retail or a workshop for the services component. This would usually involve signing a lease for premises… Depending on the market chosen even a vehicle may be required to do the services or product delivery. The business will 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 opportunity 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 need to find, employ and retain a top person for that job as well. A franchise can look like a terrific 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 general market trends, suppliers, sometimes even included is take generating advertising, and finance facilities. These are typically all formulated into a working business solution that you can pickup and run, and that’s great! You’ll however, be expected to buy this. Perhaps once off, perhaps as a royalty as a percentage of revenue. now and then both may be levied. Also a franchise is often tied to a physical area so you again could be restricted just like as a job may restrict you. All in, a franchise could possibly be summarized as ‘ purchasing a job’. It’s unremarkably a business that works, but at a cost.
Now what about the direct sales industry? Depending on the structure sometimes this can be labeled as Network marketing. I would estimate this may be the least researched entrepreneur ideas or the three discussed, at least at the start, however once discovered it can be quite attractive.
