If you truly want to find success in life, there isn’t anything that can help you achieve that in American society quite like becoming an entrepreneur. It allows you to become your own boss and live out your dream to sell a product or service that you are truly passionate about.
Overall, there are two general strategies for starting your own business. These are building a small business from the ground up and becoming a franchisee. Understanding how both paths to becoming an entrepreneur work can help you make the right choice about which to pursue.
Method 1: Starting a Business from Scratch
First, you could choose to start your own independent small business. All the big national and international chains started this way. According to Wal-Mart, even that huge retail giant started with a single humble store in Rogers, Arkansas in 1962. It is true that many businesses fail to survive the first few years. However, if you are able to find a foothold in the market, the possibility of becoming independently wealthy from your efforts is certainly a possibility.
What Is Required
Being an independent small business owner isn’t for everyone. Certainly, you need both the right attitude as well as the resources to make your business idea a reality. The first step of this process should be performing market research. Just because you have a business idea does not mean there is actual demand for what you want to sell in the market that exists. If the research shows your idea would be unlikely to catch on with consumers, you better rethink your plan.
If the market research turns out to be promising for what you want to do, you need to start crafting a business plan. This is a plan you can show to investors and lenders to sell them on your business idea. This plan should be very meticulous. Spend a lot of time on it. It should include things like market analysis, organizational structures, product and service descriptions, marketing plan descriptions, financial projections and much more. Overall, the plan must be solid, and you must be able to show enough confidence and competence in front of investors or lenders to sell them on the investment of providing you with startup costs.
Method 2: Becoming a Franchisee
Second, you could choose to become an entrepreneur by buying into a pre-existing franchise. Being a franchisee can be very advantageous. It allows you to benefit from the branding and marketing that already exists with a company and product idea that consumers are already familiar with. It allows you to institute recipes, operational systems and management structures that are already proven to be profitable. The chances of failure are thus reduced. While you can’t profit off of the intellectual property itself, you can certainly make a lot of money if your franchise location or locations turn out to be popular.
What Is Required
The main difference between starting your own business from the ground up and becoming a franchisee is that a good deal of the work of drafting a business plan is already done for you. For example, if you are looking into carpet cleaning companies and thinking about franchising one of them, then you would have access to corporate team members for advice and support to create the internal structure of your franchise. This means that whatever help that you would need, you would get it, and it wouldn’t have to be the guessing game that most new companies have to deal with. As you can see, you would be dealing with the franchisor directly. Each franchisor has different requirements that must be met to become a franchisee. Some may require that you have financing up front to even receive an application.
If you are accepted, you will need to become a party to a contract known as a franchise agreement. This agreement will have very specific rules and standards you must follow as a franchisee. Overall, you need to be able to replicate the products and services to the franchisor’s strict standards or you could end up having the agreement revoked.
Whichever path you choose, becoming a business owner will require a lot of hard work and determination. If you have the passion and work ethic to make your business dreams a reality, certainly consider becoming an entrepreneur. The fruits of your effort can certainly be rewarding.