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Comparison between a brick and mortar franchise business and an online home business
Written by: Guy LuminatoArticle Overview: 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.
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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.
Home Based Business/Brick and Mortar Business Start up Cost Comparison– The Astounding Difference in ARI (Average Return on Investment)
How To Start A Home Based Franchise Opportunity Business
How to Survive the Economic Disaster by Owning a Home Internet Business
Traditional Retailers Missing the Online Search Potential
What Do I Need To Buy A Business In The Online Business World?
Referred by: http://jaykubassek.com
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About the Author: Guy Luminato RSS for Guy's articles - Visit Guy's website  We had to pay off debts, and start over with virtually nothing to stand on. All we wanted was to work at home so we could raise our kids and work from anywhere in the world. We searched for the answers on the internet. We found it! At first we were a bit skeptical and after doing our due diligence we realized that we had found an education platform that would allow us to learn, earn and turn our dreams into reality. We ordered the system and went to work as it instructed. We had results immediately. It was simple, easy, and we could learn how to market anything, to anyone, anywhere in the world using the internet. We haven't looked back. We have been extremely fortunate to find something that can educate us and set us up for life. We are passionate about sharing our knowledge with others who are looking for big changes in their life. If our articles, and story resonate with you, see for yourself if this will work for you by going to www.WealthCreationTemplate.com www.WhyGptBeatsMLM.com We now work from home, and work anywhere in the world so that we can be with family and friends. Guy Luminato is born to Italian parents and raised in Melbourne, Australia. Michele Luminato was born and raised in Billings, Montana. Click here to visit Guy's website   What kind of MLM leader would you follow What to look for when considering an internet franchise business and other business model options Become My Own Boss Learn How To Achieve a Dream Lifestyle What Can Online Marketing Do For You Be seen as the industry expert by using personal branding in your online marketing |
Related Forum Posts
Re: Improving Cash Flow
- Not knowing your business model, I would first ask if you have a brick and mortar business or do you run it completely online?
With so many new social media sites such as Twitter/Facebook/Firndster/myspace and click ads via Google, Yahoo, Facebook etc your main goal should be to increase traffic to your site/business while minimizing daily overhead expenses.
Good Luck!
Critique Small Business
- Well, several things come to mind for me and is dependent upon the type of busienss (home based/ internet, brick and mortar).
Being in the business financing field the first thing that comes to mind is business plan...Particularly, business history, financial plan/ projections/ budget as well as your present market and competition....
And lest not forget the three L's...Location, Location, Location!
Re: Improving Cash Flow
- [quote="unlimited22":2cjbv6jo]Not knowing your business model, I would first ask if you have a brick and mortar business or do you run it completely online?
With so many new social media sites such as Twitter/Facebook/Firndster/myspace and click ads via Google, Yahoo, Facebook etc your main goal should be to increase traffic to your site/business while minimizing daily overhead expenses.
Good Luck![/quote:2cjbv6jo]
I agree. Cut your costs as much as possible. That will instantly increase cashflow. Advertise with guerrilla marketing. Google guerrilla marketing you should find some stuff.
NEED SOME CLARIFICATIONS
- My mother and I own a fantastic birthday party business. We have always thought it would be a good
franchise for anyone wanting to work out of the home. How would we get our business to franchise? The
parties include a costumed character, a birthday card art project, interactive story times, and themed
games. We are based in Buffalo, NY . It is very successful here, and we want to get it out to the world,
while making a couple bucks. How do we franchise this?
Re: Prospecting for a Franchise? Hold Tight
- A big business idea (although somewhat morbid) is to start a funeral home franchise. The business is booming, regardless of this economic down turn. People are always passing, and the baby boom is passing at an alarming rate. The business will be steady and prosperous for many decades to come. Creating a reputable, honest, and respectable franchise around funeral services may be big business. Food for thought nonetheless.
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