If you’re thinking about starting a new business venture, then there are many different options available. Of course, you can always start one from scratch. If you want some guidance along the way, however, there are at least three options first-time entrepreneurs shouldn’t ignore.
There are several reasons that micro businesses might sense for first-time entrepreneurs, as explained in a publication by the Turku School of Economics in Finland. They’re tiny, usually under ten employees, which often means that you’re exposing yourself to very little debt. Since most of these businesses have very few employees, it’s often easier for a new entrepreneur to handle human resources. These businesses are also usually extremely flexible, allowing you to change course as the company grows.
Buying a franchise is often a great idea because rules and procedures are usually already established. They usually have a well-established training program, allowing you to learn all the skills that you need like marketing, managing people, and financial accountability. Franchises also typically have established products that people are familiar with as well as established suppliers for those products. Franchises usually help train and mentor new entrepreneurs, allowing the individual buying the franchise to feel less alone.
Some franchises charge a flat fee while others charge a percentage. There are pros and cons to both ways. According to Franchise Gator, the percent-based approach tends to be more popular because as you grow your business, so do the royalty fees. This means that you’ll never be paying what you don’t have since it’s based on the income of the franchise. The fixed-fee approach isn’t quite as popular but can make more sense in the long run. A fixed-fee can feel like a lot at the beginning of a business but gets easier over time as you grow and develop.
Buy With Mentorship
Some long-time business owners want more time away from their business than they currently get. These are often family businesses sold to another member of the family. These owners will sometimes train and allow an individual to run their business. Instead of having to lay out a large amount of cash, the entrepreneur pays for the business over a period of time with their labor. Therefore, entrepreneurs choosing this method often have to have enough cash to survive. The knowledge that they’re getting a thriving business with a mentor who’s willing to teach them the ropes is a great opportunity for some people.
Others find that the current owner can be too demanding. If the legal paperwork isn’t structured correctly, then the entrepreneur may end up with nothing. Many entrepreneurs find that they develop a lifelong friendship with an individual who’s willing to let them make their own mistakes along the way while providing guidance and friendship.
Regardless of which business model you select, and which industry you’re interested in, there are opportunities for you to be your own boss! Investigate each opportunity entirely before beginning. Be sure to read the fine print before making any final decisions.