So, you’ve decided that you to start a new business. Perhaps you know what kind of business you want to start, or perhaps you just have the bug and don’t know where to start. I want to share with you some of the more popular business models out there. They are listed in order of least risk and startup investment to the most risk and start up investment.
Consulting – If you have a marketable skill, the simplest way to start a business is to let people know you are available for hire. There are a variety of services that consultants offer including online marketing services, management, programming leadership, operations, business development; you name it.
Consulting is considered a low start up, low risk endeavor because you are essentially selling your time and expertise. Depending on the type of consulting you offer and the potential risks involved, you might consider getting a business liability insurance policy.
Blogging – Starting a blog is a fairly easy venture to start, however it takes a bit of time and effort to make it a profitable one. I recommend hosting your own blog as opposed to using a free blog service because you want to own your content. Most web hosting companies offer the WordPress blog platform at no additional cost, which is one of the most popular in the world. The key to being successful as a blogger is having an expertise that you are passionate about and can write about in depth and often. Bloggers get paid by selling ads, offering products as affiliates, selling services, and attracting sponsors.
Service Businesses – Similar to consulting would be those who have expertise in a trade where they can offer their services to those in need. Service businesses include construction services, pool maintenance, photography, plumbing, electricians, and the like. Starting a service business can be a low cost, low risk endeavor if you already possess the tools of your trade. I would be cautious of using an employers tools and equipment to provider services for personal gain as that could get you in trouble with your employer, especially if the equipment breaks while you are doing a side job.
Affiliate Marketing – If you have online marketing skills, then affiliate marketing might be a great opportunity for you. Affiliate marketing is essential referral marketing, or getting paid to promote the products and services of others. The upside is that it does not require you to perform any service or inventory any products. The downside is that you have to be skilled in online marketing – or learn those skills – to be successful as an affiliate marketer.
Network Marketing – Similar to affiliate marketing, as a network marketer, you don’t have to inventory products or provide services to sell them. Network marketing works on the principle of building a team to offer products and services. It’s a great business model, regardless of what you might hear. One of the keys to being successful as a network marketer is being passionate about the product or service that you offer and the other is committing to building a team. Networking marketing is typically a low cost / low risk startup venture and does not have many of the challenges that traditional business.
Brick & Mortar Business / Franchise Ownership – Starting a brick and mortar business requires much more forethought, planning, and of course, money. It’s definitely a lot riskier to invest in a brick and mortar business because of the costs and overhead required which usually includes leasing or purchasing real estate and hiring and managing a team of employees. Many people acquire business loans for these types of businesses and not all of them succeed.
Joining a franchise will typically cost you more money up front, however it will equip you with what you need, a proven system, and the support to increase your odds of success.
So which model should you choose? Here are a few factors to consider:
- What is your passion? Make sure you are doing something you love and not just working for money. Money won’t sustain you like passion will.
- What are your skills? What are you the best at? That might be a place to start, especially if you have a highly marketable skill.
- What is your start up budget? If you are starting your business on a shoestring, then you will want to lean towards
I hope this is helpful. If you have questions, feel free to post them below and our team will do our best to respond.