| BUSINESS MODELS | | | | go back home, start the business, and never have to |
| There are so many business and work models that | | | | pay them another penny! |
| one could become very overwhelmed very quickly! I | | | | DISTRIBUTORSHIPS |
| think that there is a self-employment model out | | | | Distributorships are a great way to start a part time |
| there for just about anyone, whether it be starting | | | | business. There are many different distributorships |
| your own business from scratch, buying an existing | | | | available out there other than Amway. Generally |
| business or franchise, or distributing a product that | | | | speaking, distributorships are Multi-Level Marketing |
| you believe in, there really is something for everyone. | | | | opportunities, although some act more like 'businesses |
| TRADITIONAL JOB | | | | in a box'. Personally I like this model; you pay a small |
| This is what most of us learned about in school. Go | | | | fee to get started (typically in the couple-hundred |
| to school, get good grades, go to college, get a job | | | | dollar range), and they will provide you with training |
| working 'for the man', and retire in 30 or 40 years. | | | | including marketing and sales, many will do order |
| This is the model that I personally dislike the most. | | | | fulfillment so you don't need to stock products, and |
| Let's examine this closer; if you work for a company, | | | | many will also have conventions or get-togethers |
| even one that, at one point in time, offered job | | | | with other distributors so you can learn new |
| security, it is still extremely risky. You have one boss | | | | marketing techniques, see new products, and meet |
| and if you and that boss don't see eye-to-eye, he or | | | | other distributors in your area. Distributorships run the |
| she can fire you like that. There is one extremely | | | | full spectrum as well including gourmet foods, home |
| large, 'secure' company that I am aware of that you | | | | furnishings, auto-detailing products, legal services, |
| can only work for the same manager for a period of | | | | personal care items, and a host of others. |
| 2 years. Once the 2 years are up, you have to move | | | | The other type of distributorship is when one would |
| to a different department and report to a different | | | | buy products directly from a manufacturer at a |
| manager. Let's say that you have a good run for the | | | | discounted rate, and then market and resell the |
| first 10 years you are there. Now it's time for you to | | | | products at a markup. I have done this before for |
| move to another department and report to another | | | | one business I had. There was nothing to it; no |
| manager. You can't seem to get along with this | | | | minimums, no quotas, just place an order on an |
| manager no matter how hard you try, and 1 month | | | | as-needed basis. You couldn't believe the mark-up |
| into it, you get issued your walking papers. How's | | | | that retailers get to put on some of the products. |
| that for job security? | | | | There was one product in particular that I resold |
| HOBBY BUSINESS | | | | which, no matter what price I charged, I would sell |
| This is typically a part time business that you run | | | | out before I would receive more from the company. |
| because it's something you enjoy-whether it is a | | | | I started selling it at $8.99US and would add a dollar |
| product or a service. At the time of this writing, I am | | | | to it almost every month for about 6 months. People |
| having a family friend build me a new entertainment | | | | bought it no questions asked! |
| center. Woodworking is his hobby business. I don't | | | | Find something you are genuinely interested in, |
| know how much he makes ($) with this particular | | | | whether it is a product or service, rather than looking |
| hobby, but it's something he would be doing either | | | | at the popular ones or the ones that promise the |
| way. For a year I taught kickboxing at a karate | | | | best $ or highest commissions. |
| school in Minneapolis. This isn't exactly a business, but | | | | CONSULTING/CONTRACTING/PROFESSIONAL |
| it's something I enjoyed doing and at that point I | | | | SERVICE PROVIDER |
| was actually getting paid to work out! My guess is | | | | This is a model that is very near and dear to my |
| that you have a hobby RIGHT NOW that someone | | | | heart! I have worked with Consultants extensively |
| out there would pay you to do for them. I am aware | | | | over the course of my professional career. |
| of a young lady who enjoys scrapbooking, she | | | | Consultants (I am going to just refer to this category |
| offered to help a few people build a scrapbook (for | | | | as 'Consultants') are those who have a particular |
| free? I am not sure), and the next thing she knows, | | | | expertise in an area and are hired by a client (either a |
| she is getting paid (a lot, I might add) to put | | | | company or an individual) to use their skills and |
| together scrapbooks for people! By the way, at this | | | | abilities for a certain period of time. Consultants could |
| point I believe she does this little hobby business | | | | be those who have worked for a company for many |
| fulltime! | | | | years and decided to go from an employee at one |
| FRANCHISES | | | | single company to a Consultant at many different |
| There are many different types of franchises out | | | | companies-servicing each one on a part-time basis, |
| there, and in many different industries. Most people | | | | maybe even as little as 1x a month. Other |
| seem to believe that there are only fast food and | | | | Consultants learned a valuable skill in college and |
| cleaning franchises, but franchises actually run the full | | | | started marketing themselves as Consultants at the |
| spectrum. I have come close to buying several | | | | age of 23. Here again we run the full spectrum, |
| different franchises myself, but I found in each case | | | | Consultants can be Project Manager, Six Sigma |
| that my personality seemed to clash with the | | | | Experts, Engineers, IT Professionals, Personal |
| franchise system. What I mean by that is I tend to | | | | Trainers, Dietitians, Accountants/Bookkeepers, |
| challenge systems rather than go along with them. | | | | Construction Managers, Business & Career |
| Something a franchisor has found to work in a | | | | Coaches, and the list goes on.... |
| particular facet (let's say Marketing) may not interest | | | | E-COMMERCE |
| me and I want to try something else that the | | | | Many people have jumped on the dot com |
| franchisor may not agree with. I am not a 'by the | | | | bandwagon over the past 10 years and many |
| book' type of person, I like to change things up | | | | millionaires have been made over night. With the |
| frequently, take on new projects regularly, and I | | | | popularity of auction websites, Yahoo! |
| don't mind having a few failures along the way! | | | | Stores, and social networking websites, |
| Two things I learned from reviewing these franchises: | | | | there is bound to be something to tickle your fancy. |
| 1) Franchisors are convinced that you simply won't | | | | Personally, I think every small business (and big |
| make it in business without buying a franchise from | | | | business) needs to have a presence online, whether |
| them. 2) You may not NEED to buy a franchise in | | | | offering products for sale or just for informational |
| order to have a business in the same service line or | | | | purposes. I am aware of an e-store that sells genuine |
| industry. | | | | 'Western Tumbleweeds', primarily to overseas |
| There is NOTHING wrong with reviewing franchisors | | | | customers. I have also seen a website that sells |
| material and duplicating the model (that is, the | | | | gas-powered blenders (yes, regular kitchen blender |
| material that they send you for free-and not the | | | | with a gas powered engine!). Another popular model |
| material that is part of the franchising system and/or | | | | is 'Membership' websites. That is where someone has |
| after you signed a confidentiality agreement! Just so | | | | a strong background or knowledge base in some |
| we are clear on that. I don't want angry letters from | | | | area, and for $4.95 a month, you can have access to |
| franchisors!) | | | | this valuable information that one has posted in a |
| Quick story about one of my franchise experiences: I | | | | private area of a website. That could be stock tips, |
| looked at buying a men's circuit training/kickboxing | | | | sports info, video game tips, etc. This avenue could |
| gym a few years ago. The parent company revealed | | | | be a nice add-on for a Consultant or Professional |
| a lot of their info to me just for the asking. After I | | | | Service Provider to market to his or her customers. |
| had a chance to review it I realized that I already | | | | One could also start doing e-commerce as a |
| had everything they were looking to sell me | | | | distributor for a product or a service that was made |
| (marketing info, equipment, martial arts instructions | | | | or designed by someone else (as we previously |
| videos, and weight training equipment). I priced | | | | discussed). |
| everything out myself and came up with about $25k | | | | FROM SCRATCH |
| total expenses. They were charging $50k for the | | | | I could easily start a snow-removal business or a |
| franchise and $700 a month for operating expenses. | | | | grass-cutting business or a pressure washing business |
| It turns out that they needed me (remember I | | | | today for under $300 for EVERYTHING. Business |
| worked for a kickboxing gym for a year) more than | | | | cards, advertisements, and equipment. In fact, when |
| I needed them! I parted ways with the franchise | | | | I was in college, I thought that I could either go get |
| company and about a year later I learned that they | | | | a fast food job for $5/hr or I could capitalize on the |
| were going out of business. | | | | record breaking snow fall that we had that year. I |
| BUSINESS IN A BOX | | | | chose the latter. I recruited my roommate and a |
| This is like Franchising Light, or Diet Franchising. You | | | | couple classmates to help on an hourly basis and we |
| are buying a proven business system with a clear | | | | made a killing. I believe our total start-up cost was |
| business plan, but once you pay your initial fee there | | | | $50 (for 2 back-friendly plow-like shovels). We went |
| are no operating costs or monthly fees. You buy the | | | | door-to-door, posted a couple of flyers on |
| system and do what you want with it. You can work | | | | community bulletin boards, and before we knew it, |
| part time with it, full time, or add the service or | | | | we had more work than we knew what to do with. |
| product to your existing business model. I owned a | | | | It was a rewarding feeling to me knowing that I had |
| auto detailing/product supply company for a few | | | | to start turning work away. We never got really |
| years and I would get so many 'business in a box' | | | | high-tech or overly fancy, just shovels, flyers, and |
| opportunity info in the mail it wasn't funny! Several | | | | the desire to succeed. Most of our classmates were |
| struck me as a great idea, but two that I remember | | | | eating mac and cheese everyday, but my business |
| were very unique approaches that I likely won't | | | | partner/roommate and I would have pipin' hot food |
| forget. One was a 'Auto Detailing Business in a | | | | delivered to the job site every night, from our choice |
| Trailer'; it was a ready-to-go trailer that you would | | | | of delivery restaurants-and the best part is we got |
| pull behind your truck, that was chock full of detailing | | | | to write it off! |
| equipment so you could go to the customers location | | | | SUMMARY |
| and detail their vehicle. They had a pressure washer, | | | | Get as much info as you can about an industry or |
| water tank, vacuum system, and tons of other stuff, | | | | service that you wish to get into and start reading |
| as well as custom graphics on the outside that | | | | through it. There is an avenue/model that is right for |
| advertised what you were doing. Additionally, it came | | | | you! This writing barely begins to scratch the surface |
| with marketing materials, instructional videos, business | | | | of all that is available out there. I buy a book put out |
| cards and some training (I forget the specifics). All | | | | by Entrepreneur Magazine called The Business |
| this was available to you for right around $10k! | | | | Opportunity Handbook, and I go through it with a |
| The other business in a box was actually an 'institute' | | | | fine-tooth comb. This handbook has so many |
| that you would buy your detailing equipment from | | | | different businesses listed that it could easily take |
| (pressure washer, buffers, etc) and they would have | | | | you a week to go through. There are franchises, |
| you come to one of their locations and they would | | | | distributorships, businesses in a box, you name it it's |
| teach you how to use everything and how to | | | | in there! It lists contact info, websites, # of locations, |
| market your business, once you were done there, | | | | start-up money required, everything you need to |
| they would give you a certificate and consider you a | | | | know. |
| 'graduate' of their training program. Then you would | | | | |