More than ever before, people are taking charge of their financial future by venturing outside of the corporate world and starting their own business. While this can secure a person’s future, not all business opportunities will produce this desired result. With so many opportunities available, it can be difficult to make the right choice.
The most popular and most profitable business opportunities have always been in network marketing and franchising sectors. When choosing the structure for your business, compare the pros and cons of both models so you’ll end with the opportunity that best matches your skills and goals for the future.
Money
Every business requires capital, or money, to start. The amount of capital needed depends on the type of business. A franchise usually requires the most significant capital funds, thus making the risk greater because there is more to lose. The initial monetary investment usually covers the lease of a space for the business, the inventory, business equipment needed, and enough reserves for paying employees for at least the first six months to a year.
A network marketing startup requires a low initial capital investment, sometimes you can even start this type of business for as little as $100.00. This is usually because entrepreneurs following this business model typically work at home and don’t require a costly storefront location. These businesses are most often sole proprietorship operations, meaning they are a one-person business. Not having employees to pay allows the entrepreneur to avoid the high costs of employing people. In most of these opportunities, entrepreneurs don’t even need to invest in inventory or expensive equipment either.
Training
Both network marketing and franchise business structures provide excellent resources for training, including initial startup training, ongoing product training, and general training on how to market and run a business. Many experts believe that networking models provides entrepreneurs with a higher level of support than franchises do.
This is because other parties within this business structure have a stake in the achievement of everyone within the downline or business. The level of success depends on the individual entrepreneur and the commitment made to training and working the business. When one is successful, others are successful as well.
Balance
In the opening stages of any business, it’s difficult to balance work and life. Since you have control over the flexibility of your work hours, more support from other network marketers in your program, and a proven plan that will guide you to success, operating a business through networking usually provides greater freedom in this area than a franchise opportunity does.
Because of the larger capital investment of a franchise opportunity, the competitive marketplace, and a lower percentage of profit, you might not make as comparable a return on your investment as you might with network marketing during the same amount of time in business. After a while, a franchise does allow you to remove yourself from the daily running of the business upon hiring qualified employees.
Whether you choose network marketing or a franchise opportunity, just by taking the step toward self employment puts you one step closer to a bright financial future.