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Starting a Business - Brick and Mortar Franchise Or Internet Opportunity

Written by: Jim Whittaker

Article Overview: So you would like to start your own business, but not quite sure where to start. Do you want to buy into a small business Franchise, or start an Online Business? I have been there done that and this is what I learned.

Starting a Business - Brick and Mortar Franchise Or Internet Opportunity

So you would like to start your own business, but not quite sure where to start. Do you want to buy into a small business Franchise, or start an Online Business?

Lets do some basic item for item comparisons. First and most obvious, with a small business franchise, your market is local. With an online business your market is virtually the world. What about start up cost? A small business Franchise has an initial Franchise fee from $10,000 to $1.1 million. On top of that you need a reserve and start up money, $50,000 to $250,000. With an Online Business, start up and marketing cost $500 to $25,000. A reserve is not necessary because there are many effective ways to market online that have little or no cost, but I would recommended $1,000 to $5,000. This will give you many more options and quicker profit potential.

With a small business franchise, average return on investment is 3-5 years. With an Online Business it is 2 to 6 months. I would like to elaborate on this. One thing I learned in my real estate franchise is that when I got to the point of profitability, space and growth capacity had also been reached. So the only way to increase profits was to expand or take on another location (franchise). Therefore I needed to put the profits right back into the business. The other thing that happened is focus was turned to furniture, design and negotiating leases and away from the main source of profit. With an Online Business, most are done from home so no commercial space is needed. Growth is a natural part of your day to day activities. As your sales grow, so does your business. Since almost all cost are directly related to your marketing efforts, profits are put back into lead producing vehicles, rather than overhead and in most cases increased expense is relative to greater profits.

One more point I would like to add, that is in the favor of an online marketing business, is you can do it part time and build it gradually over time. With a franchise, unless you can fully fund other people to do it, needs your full time attention.

Now lets talkhorrifying but true facts. 95% of all small businesses fail in the first 5 years, many of those in the within the first 2 years. 97% of people that start an online business are not profitable. If after hearing this, you have not shut down your computer and put the thought of starting a business out of your mind, then, maybe, just maybe you have what it takes to be one of the 3-5%. It will not be easy, but I promise you the rewards are well worth the sacrifice.

So with that in mind, I would make one recommendation. Find a venture with GREAT SUPPORT. Not just a person hired to sell franchises or a person that is just looking to build a MLM Downline so they don't have to work, but someone that has walked the walk and been where you are. They are where you want to be, still producing and have a track record of showing others the way.

I hope the information provided here was useful. If you think an online business is what you are looking for and you are serious and motivated. Then I would love to have you join our team of some of the worlds top internet entrepeneurs and network marketing trainers. Go to the website listed in my Bio and I will see you on the other side.

Hoping all your dreams come true.

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Article Tags: 1 million, business franchise, commercial space, furniture design, initial franchise fee, leases, location franchise, main source, marketing cost, marketing efforts, money, own business, part time, profitability, profits, real estate, return on investment, small business
Referred by: http://jaykubassek.com



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