Updated: January 17, 2020
Do you want to have your own business? Then you should know that there’s more than one way to achieve this goal.
Starting your own business from scratch is probably what you only have in mind when it comes to becoming an entrepreneur. This is the first way on this list. But there are of course, two more as listed below that you should also consider.
BUILD A BUSINESS
The first option is what most people assume as the only way to have a business. And that is to build one on your own.
Admittedly, this is the best option for me. Well, because you’re in full control and you have the power to operate the business in any way you like.
However, in some cases, this becomes a disadvantage especially when you don’t have enough experience yet in running your own business. That’s because this route will require a lot of your time and energy.
This option is heavily loaded with planning and learning by trial and error. It can be lonely and often stressful. But it’s always glorious when you’re able to succeed.
BUY A BUSINESS
The second option can be accomplished in three ways. First, through buying an existing business. Second, by getting a franchise business. And third, by becoming a shareholder. I’ve explained each below.
Buy an existing business
This is as simple as it sounds. You purchase an existing business and take over as the new owner.
You gain full control, but you’ll have to initially work with its current operations. If the business has been doing good, then there isn’t much that you have to do.
But often times, there’s a problem that you’d need to fix so you have to be ready. Because if the business was running smoothly, then why would it be sold in the first place, right?
So be ready to dedicate most of your time and energy to manage the business when you plan to do this.
Get a franchise business
Getting a business franchise is advantageous for those who don’t have experience or don’t have time to learn how to run a business.
While this is the most expensive among all possible options, it nevertheless has the highest rate of success, according to studies. Because what you’re getting is a time-tested business model with market-validated products and services.
Additionally, the franchisor will be there to help you as business partner, mentor, and consultant along the way.
Be a shareholder
While this is more often defined as an investment, it is nevertheless a legitimate way to become an owner of a company. However, as a small investor, you’ll have very little to no control over the business operations.
Buying shares of a company is often and most conveniently done through the stock market. Just open an account with a stock broker, deposit funds, and you’re ready to become part-owner of a publicly-listed company.
When you’re lacking in time and adequate business capital, putting your money in the stock market is a viable option in becoming a business owner.
RENT A BUSINESS
Yes, it is possible to rent a business and you probably know about it but don’t quite think of it that way.
Renting a business is what you do when you join a network marketing or multi-level marketing company. Thus, when someone asks you if you’re open-minded to doing business, they’re not lying — it is true!
All legitimate network marketing companies sell a tangible product, just like a traditional business. More importantly, you must be able to earn without recruiting anyone. Because you can simply sell their products for profit, just like a traditional business too.
However, when you recruit someone to join your team, then it’s similar to how traditional businesses expand through franchising. You’re selling a franchise of your business to someone who is willing to duplicate what you’re doing.
Furthermore, all legitimate network marketing companies have a monthly quota. This is a non-negotiable minimum amount of product that you must buy from the company to continue earning.
To use an analogy based on traditional businesses – that monthly quota is the “rent”. Meanwhile the joining fee that you paid at the start is the business capital.
And if when you want to “close the business”, then it’s usually as simple as choosing to stop paying the “rent” and then forget about it as you move towards other ventures.
Owning a business is always risky. But the rewards are great if you manage to succeed. There will be failures in all the options, but they all come with valuable learning experiences.
So, given the three ways to own a business, which among them do you like best? Share your thoughts in the comments section.
Photo credit: stavos52093