No…This isn’t a pitch for a Biz Opp or Marketing System. It’s just a generic overview of what’s out there for the average person wanting to start a business, but no idea on what is available.

You basically have 4 major business models that MOST people can do. What I’m going to do is break them down and give some advantages and disadvantages.

Traditional Brick and Mortar Business

The bread and butter of the American Entrepreneur!  This is the most popular business model of past generations and is still wildly popular today.  Virtually anyone with an idea and some ambition can hang their shingle out, so to speak, and be in business.  From a car lot to a restaurant to a toy store, this is what created the most economic growth in the US and many other countries.

Advantages:

You have total control over your business, you can set your own hours (But if you’re not open, you’re not making money!), you may not need employees, you can sell your own products or other people’s.

Disadvantages:

You will probably need to purchase land and a building, lots of potential overhead, no established business or marketing plan, you will probably have to work long hours.

Online Traditional Business

You can take your brick and mortar business and move it on the Internet, or you can establish an Internet only business.  This option is becoming much more prevalent as we all know.  And each year, there are more opportunities to build a business online.  Say for example you like making candles.  You can build a website and start selling your candles around the world.

Advantages

Like a traditional brick and mortar business, you have total control over your business.  In this case though, you really can set your own hours because by using the automation provided by the web, your products can be selling while you are asleep.  And unless you manufacture something, you may not even need employees.

Disadvantages

You still need a product or service that you either have to make or buy from someone else, and you will have to come up with your own business and marketing plan.  You create some leverage by being able to be open 24 hours a day, but you will have to process orders, ship them and restock your merchandise.

Franchising

This offers some great advantages and is becoming a very popular form of business ownership.  It allows you to leverage the your sales and marketing efforts from an established brand, and you will have a customized business plan that is already proven to work.  In return for this, you will have very significant upfront costs.

Advantages

Slightly less control over your business as your franchise license requires you to run your business a certain way.  An established, proven business and marketing plan.  You will be able to leverage some of your personal time because you will now have managers in your business.  And you have the ability to purchase more franchises if you’re successful

Disadvantages

Upfront costs for many successful franchises will be in the millions of dollars, lots of employee costs such as unemployment, workers compensation, and heath care.  You will have a large investment in a location where the local demand could change over time.  High monthly overhead costs.  And it may be difficult to sell the business.

Now, before we move on to the last business model, let’s talk about this thing called leverage.  Leverage has a lot of different meanings, but lets take it in the context of your personal time and money.

Why does a person who owns a store hire a sales manager and a sales force?  Why don’t they just do all the selling themselves and save the salary and commission?  Because by hiring a sales force, they are able to duplicate their efforts and create simultaneous sales.  Like creating a bunch of clones, when trained properly and ethically, to grow the enterprise.  This is leverage.

So, let’s take a brief moment and think about how we could create the best form of business out of all the advantages and none of the disadvantages of the previous 3.  Here’s the list of advantages summarized.

• Set my own hours
• Have an established business and marketing plan
• Only have employees if I wanted them, but I wouldn’t need them
• Business would run 24 hours a day, 365 days a year with or without me
• You could run the business globally using a laptop computer & an Internet connection
• Could have as many franchises as you want for very low cost
• Sell other people’s products or your own
• Recruit and train the sales team you want using your ideal hiring criteria

10 years ago, this ideal business didn’t exist.  But thanks to a little invention called The Internet, it exists and is creating success for people each and every day.  This business model is called

Online Network Marketing

Now, you probably have the perception that network marketing involves going door to door selling toothpaste or bugging all your friends to do something they don’t want to do.

WRONG!

Honestly, if you had a BMW dealership, would you hire some of your friends to be your top sales rep?  I know I wouldn’t!  The internet has allowed us to segment and market to groups like never before.  We can now find customers who are looking for our product, and we can recruit people from all over the world who are the ideal fit for our team.  No different than if you were hiring salespeople for your business.

This ain’t your Granddaddy’s MLM opportunity.

The bottom line is this.  Any of the business models we have talked about today are viable options for you as a budding entrepreneur.  But if you want to realize true leverage, Internet Network Marketing may be the best fit.  It is cheaper to start than a brick & mortar or franchise business, it will have an established business & marketing plan, and you will have the mentorship benefits like franchising as you will be working on a team with successful people interested in your success.

Don’t Make Network Marketing Any More Complicated Than It Is.

By using the power of the internet, you can market to the entire world with your product or service, you can build a sales team that reaches across all hemispheres, and you can create a customer base in any country you choose.

You can leverage your efforts and your time by finding like minded people to join you in your quest.  No matter what some out there may say, Networking in the 21st Century isn’t your Granddaddy’s MLM.



One Response to “Which Business Model is Right For Me?”