When deciding what type of business model best fits your needs, there are a few things you need to take into consideration. Starting a business can sound like a lot of fun, and it certainly should, be but if you’re not careful your business could end up owning you!
When starting a business, your goal is to build leverage, getting paid when not working! Entrepreneurs understand this and are willing to commit the income, time and energy required. In most cases your looking at 5 to 10 year business plan. Well worth the investment, if done correctly.
First let’s talk about a traditional franchise. In today’s market if you plan on opening a main stream food franchise, you better have access to some serious cash and have a decent net worth. According to an article in Business Insider, starting a business will cost you as little as $116,000.00 with liquid assets of $90,000 and up to $2.5 Million with liquid assets of $750,000.00. That puts the majority out of the game!
This doesn’t include real estate leases or purchase, equipment leases, pay-roll, marketing, attorneys fees and a whole lot more! The good news is that franchises have a low failure rate of about 10%. This is largely attributed to the fact, when you purchase a franchise you’re required go through the franchise training to learn there proven process and system.
Now let’s look at an Agency or Independent Agent model. In this model your looking at lower startup costs, no real estate investment, no employees, work from home or office and depending on the type of business, no inventory. In many cases you have the freedom to work where you want and set your own hours.
With the Agency or Independent Agent model, you will be responsible for your own marketing and training. But when you consider the fact that your initial investment can be as little as $500 to $5000.00, that a drop in the bucket compared to $2.5 Million!
In this model you will have the same opportunity as a franchise owner to earn a significant leveraged income. In some case even more! This is obviously good news for people looking to start a business but limited on the capital to start a business.
That leads to the problem. Because the startup costs are minimal, people sometimes don’t take themselves or their business seriously. They fail to get trained and learn the company’s process or system. They refuse to invest in learning how to be a successful entrepreneur or business owner. Because of this, 90% will most likely fail. This does not have to be the case. Invest in yourself and training!
Starting a business doesn’t have to be hard. If you’re looking to start a business and more importantly, want a SUCCESSFUL business, click the link below to begin your journey to becoming a successful entrepreneur!