A business system is a system that once it is set up and functioning properly, makes you money as it works for you regardless of whether you are there or not. There are three kinds of legitimate business opportunites or business systems: C Type Corporations, Franchises, and Network Marketing businesses.
In a C Type Corporation, you will start up your business completely from scratch. You must go through the legal hurdles, start up funding, have your own good or service, create a logo and company name, build or rent the site where you will conduct business, hire employees, fund overhead expenses, seek out the capital to start it up if you can not personal fund and so on. Be prepared to invest major amounts of time with this system. Banks may not loan you the money if you have no assets yet since it won't be a proven system.
In a franchise, you will be buying a system that has the basic foundation laid. You will not have to create the name, logo or product. Banks will loan to business owners of reputable franchises. Marketing and branding may have been established by the franchise already. Think of McDonald's, the branding has already occurred. However, franchises can be costly with fees and monthly royalties. Famous franchises can cost millions of dollars. Be weary of new franchises under 5 years old, and find out how many franchises were sold, opened and closed too. With this system, you are still responsible for hiring, paying the rent, and other overhead expenses. This is the system I owned for 5 years before moving into the next system.
The third type of legitimate business opportuntiy and least expensive is Network Marketing. With this opportunity, you are able to buy into a system at a very inexpensive cost, like $200. This is a system that has gained popularity because it gives you a chance to develop wealth just as much as the other two, without all of expenses, time and risk involved.
In all three models, regardless of how much time or money is involved with the start up, you will need to develop your leadership skills. If you buy into a franchise model thinking you will be safer than in a C Corp because things are already done for you, but you have no leadership skills, you will struggle and fail. The franchise model is difficult to say it will work when it is brand new, so learning leadership skills before you invest your money is a must so that you are not spending time developing the skills after you open. If you wait to learn, it would be a big mistake. In Network Marketing, you still need leadership skills but your team will provide training and you'll have a personal mentor that will help you with this. Since you won't have high overhead costs, such as rent and labor, you can start a Network Marketing business and take a little time developing your leadership skills. There are hundreds of legitimate network marketing companies. Some examples of Network Marketing Companies are Herbalife, Numis, Lia Sophia, Melaleuca, and Amway Global.
I have found that the Network Marketing business opportunity is the best option if you desire to have a business and a good shot at gaining wealth. It is less risky and less costly. But that can be a downfall too. Because of this, some people don't take it very seriously. If it is treated like the first two, with as much care and love, you will reap rewards without having to go through all the start up and financial hurdles. When I owned a franchise for five years, I experienced many hurdles than most would not because it was actually a brand new franchise that had never done any branding on marketing. So I needed to do that from scratch as one would need to do in a C Type Corporation. And the system was not proven. The system struggled and so did many of the franchisees. Within five years, over 50% of the franchises closed down. Even though I never started a company from scratch as in a C Corp, this was pretty close to it because it was so new.
With Network Marketing business model, you may have a team of partners, but you never have to hire employees and pay labor costs! You should really be aware of making sure you get on a good team also. See, you still work with others, but you want to make sure you receive excellent training. Products may seem important to you, and they should be good quality, not junk, but the team, business, and training is equally if not more important. You can have the best product in the world, but that won't matter if the training is not there.
Author Resource:
Michelle Falla is an educator and entrepreneur. She enjoys teaching and helping others succeed. Click here to learn more about creating wealth
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