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Posted on October 24, 2009 by Richard Baldock | Posted under Entrepreneurislism
Entrepreneur Ideas - The Right Selection Goes a Long Way Toward Your Business Venture's Success
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A business of this nature requires a considerable 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. Don't forget premises will probably also be required, and that most likely Depending on the market chosen even a panel van may be needed to perform the services or product delivery. Being to tied to a physical location will make the business feel like a binding job . We haven't even explored the possibility of employing staff which, in all probabilty will be required. This comes with it own set of responsibilities, compliancy and ultimately stress. On the upside, potentially income on services can be good if well managed however, unless you want to be that manager you will need to seek out, employ and retain a top person for that role also. In summary:
These are all formulated into a working business solution that you can pickup and run, and that's great! This will of course come at a price.Perhaps once off, perhaps as a royalty as a ratio of revenue. Occasionally both may be levied. Also a franchise is often tied to a physical area so you again could be limited 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:
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 sponsoring in the same way. And you may even earn a portion from their revenue 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 teach them effectively. You typically don't have to carry stock, so you won't have to fund that or provide premises to store it, or transport to deliver it. Customer service, administration etc 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:
About The Author: As a Business & Wealth strategist, Richard Baldock leads by example, teaching self-motivated people to become entrepreneurs and achieve their income goals working for themselves. Richard Baldock is also the author of a FREE 4 day e-course "24 Rules for Success in Business". Feel free to visit his blog at RichardBaldock.com - Connecting Entrepreneurs with Information to Achieve Success |
Tags: ENTREPRENEUR IDEAS, DIRECT SALES, FRANCHISE, NETWORK MARKETING,
