Everyone knows that when you think of offline businesses, you picture franchise companies like Subway or Wendy’s…right?. They also give you a proven business model and design template for your business, however the cost associated with these opportunities can put a sever dent in your wallet. As with all franchise businesses, financing is available, but that is a double edge sword. You see not only do you have to qualify for the business financing, you also have to qualify to be considered for the franchise itself.
Your net worth and liquid assets will be key factors in deciding if you qualify for the franchise or not. Now your intelligent enough to know that this may not the best option for someone who is looking for a business they can grow into. Remember, you don’t want to chain yourself into entrepreneurial slavery, your goal is simply to change the way you earn.
The Old Traditional Business Model
These are what most of us are familiar with. They require huge start up like $250,000 to over $1 million dollars. And can take 3-5 years or more to profit. The profit margins are usually very low and you have to move a ton of product. It does NOT run 24/7,365 a year in over 140 countries. It will be open during business hours and be in a small local market. You will have to deal with lots of employees, lots of space, high rent, tons of inventory, expensive insurance, a massive liabilities and you will have heavy overhead. This model has been around for hundreds of years and is old and antiquated and less than 50% survive after 5 years. You will be trading time for money, and you will have to scale your store to make 6 figures. This kind of business in most cases will NOT yield a higher return that real estate, 401k, or the stock market.
The offline model isn’t going anywhere, its only going to stay the same and get harder and harder and more competitive.
This is a New Business Model
Which can be started up at a very low cost compared to traditional business. Has much higher profit margins, can run for you 24/7,365 a year in over 140 countries.
You will have:
- No employees
- No space
- No rent
- No inventory
- No insurance
- No liabilities
Not to mention very little overhead. This model is 10-20 years ahead of the average person still trading time for money, climbing the corporate ladder or buying brick and mortar businesses. It can yield a higher return that real estate, 401k, or the stock market. The internet isn’t going anywhere, so it’s time to learn it and how you can profit from it.
An expert would agree, that the biggest benefit is going to be the lack of overhead that saddles the main street brick and mortar franchise businesses, not to mention the cost and constrains will leave you with many years of frustration and hard work before you can even see a profit. When deciding on the business model that will be right for you, STOP and ask yourself this one key question…Am I willing to endure years of frustration, dealing with employees, rent, insurance or do I want a business that has a legitimate change of seeing a profit within months.
