Comparison between a brick and mortar franchise business and an online home business
Comparison between a brick and mortar franchise business and an online home business
Buying a franchise business is very different from buying an online business. Each business model represents two ways of doing business. One is not necessarily better than the other. They are each a good fit for the right business owner.
Let's break down three areas that you will need to consider when buying either business. You want to look at what kind of investment capital you will need. You want to look at what kind of overhead costs are involved, what kind of profits can be obtained, and finally what kind of daily challenges you will face.
Investment capital can not be avoided by any real business owner. It takes money to get a business going. In some cases, the business owner may need to constantly fund the business. Let's look at the cost of buying a franchise. It usually can cost between $250,000 to $1.5 million depending on the type of product, and the company you associate yourself with. If you consider paying any less, you will most likely end up investing more at some point in your start up.
Let's examine the cost of buying a successful online business. There are many out there, and you want to do your homework. You should expect to pay between $500 and $20,000 depending on your income goals. In this business model you would be paying a fraction of the cost of a franchise. Make sure it is legitimate, and a partnership you can be proud of.
With an online business, you should look for a business that includes complete online training, and a website set up so you can market immediately. Your monthly overhead will be minimal since you can do the work from home. You will need a good computer, internet connection, and a marketing budget.
With a franchise, your monthly overhead will be extensive. You will want a complete list of all the areas of operation. You will have a lease to pay for a high traffic space, employees to pay, workman's comp insurance, building insurance, inventory, and maintenance costs. Some of these items are big ticket items so you will want to make sure you have a fair amount of working start up capital to fund these items while you get your business going.
One of the most important areas to look at in owning your own business is the profit and loss category. You must make sure that after your overhead is covered, your profits are still there. With the large expenses of a brick and mortar business, it is easy find the profits are low and your return on investment is not always there.
With a quality online business, profits can be very high. Overhead is low and there is more room for profit in your pocket. There are two things to look for when your evaluating which online business to go with. Look for a quality product that has high commission sales. This will allow you to make a high monthly online income. Make sure that the marketing and website system doesn't require more than twenty percent of your profits to reinvest back into marketing and advertising.
Daily challenges with both businesses are inevitable. With a franchise you will be challenged by the head aches that come with managing employees, managing the fine line of stocking inventory to meet demand. You will have paperwork to file, submit and coordinate to keep your books in line to manage the company efficiently.
The online business model has completely different challenges. The number one challenge is learning something new if you are not familiar with online marketing. With this in mind the learning curve is quick with the right mentors. This challenge comes with a huge reward of learning how to market anything, to anyone, from anywhere in the world.
Only you can decide if you are a good fit for a brick and mortar business model, or if you would be better suited with the freedom of working online. I have personally worked both business models and find that the online business model works better for me and those I coach.
Comparison between a brick and mortar franchise business and an online home business - To learn more about this author, visit Guy Luminato's Website.
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Buying a franchise business is very different from buying an online business. Each business model represents two ways of doing business. One is not necessarily better than the other. They are each a good fit for the right business owner.
Let's break down three areas that you will need to consider when buying either business. You want to look at what kind of investment capital you will need. You want to look at what kind of overhead costs are involved, what kind of profits can be obtained, and finally what kind of daily challenges you will face.
Investment capital can not be avoided by any real business owner. It takes money to get a business going. In some cases, the business owner may need to constantly fund the business. Let's look at the cost of buying a franchise. It usually can cost between $250,000 to $1.5 million depending on the type of product, and the company you associate yourself with. If you consider paying any less, you will most likely end up investing more at some point in your start up.
Let's examine the cost of buying a successful online business. There are many out there, and you want to do your homework. You should expect to pay between $500 and $20,000 depending on your income goals. In this business model you would be paying a fraction of the cost of a franchise. Make sure it is legitimate, and a partnership you can be proud of.
With an online business, you should look for a business that includes complete online training, and a website set up so you can market immediately. Your monthly overhead will be minimal since you can do the work from home. You will need a good computer, internet connection, and a marketing budget.
With a franchise, your monthly overhead will be extensive. You will want a complete list of all the areas of operation. You will have a lease to pay for a high traffic space, employees to pay, workman's comp insurance, building insurance, inventory, and maintenance costs. Some of these items are big ticket items so you will want to make sure you have a fair amount of working start up capital to fund these items while you get your business going.
One of the most important areas to look at in owning your own business is the profit and loss category. You must make sure that after your overhead is covered, your profits are still there. With the large expenses of a brick and mortar business, it is easy find the profits are low and your return on investment is not always there.
With a quality online business, profits can be very high. Overhead is low and there is more room for profit in your pocket. There are two things to look for when your evaluating which online business to go with. Look for a quality product that has high commission sales. This will allow you to make a high monthly online income. Make sure that the marketing and website system doesn't require more than twenty percent of your profits to reinvest back into marketing and advertising.
Daily challenges with both businesses are inevitable. With a franchise you will be challenged by the head aches that come with managing employees, managing the fine line of stocking inventory to meet demand. You will have paperwork to file, submit and coordinate to keep your books in line to manage the company efficiently.
The online business model has completely different challenges. The number one challenge is learning something new if you are not familiar with online marketing. With this in mind the learning curve is quick with the right mentors. This challenge comes with a huge reward of learning how to market anything, to anyone, from anywhere in the world.
Only you can decide if you are a good fit for a brick and mortar business model, or if you would be better suited with the freedom of working online. I have personally worked both business models and find that the online business model works better for me and those I coach.
Comparison between a brick and mortar franchise business and an online home business - To learn more about this author, visit Guy Luminato's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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John AlexanderJohn has taught keyword research and SEO skills to small groups of business owners and Webmasters from over 80 different countries world wide since 2002. John is also the Director of Search Engine Academy ; Co-director of Training at Search Engine Workshops offering live, SEO Workshops with his partner SEO educator Robin Nobles, author of the very first comprehensive online search engine marketing courses at SEO Training Online and the SEO Workshop Resource Center. I look forward to hearing from you! - Visit John Alexander's Website |
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For an online Car Loan Calculator and finance for a cheap car loan. Get approved on car loans or car finance in Australia with cheap bank car loans and finding a car finance broker. Commercial car loans including business car finance and car lease. Car Loan Calculator has information on finance companies and getting the right cheap car loan from banks at best car loan rates and a online car loan calculator for all finance in Australia. Get the best car finance with our help at Car Loan Calculator and Finance Ezi. - Visit Richard Jefferies's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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