Often a typical entrepreneurial idea would be a old school ‘bricks & mortar’Many choices and options will present themselves.. By this I mean something like a typical retail store or other business that sells products and perhaps also offers services around that product set.

A business of this nature requires a sizeable amount of startup investment.  There would be items to purchase such as inventory, tools for the services and perhaps a shop fit in the case of retail or a workshop for the services component.  Don’t forget premises will probably also be required, and that most likely

Depending on the market chosen even a panel van may be needed to perform the services or product delivery.  A conventional business is often binding given its dependence of a physical location.

We haven’t even explored the possibility of employing staff which, in all eventuality will be required.  This comes with it own set of responsibilities, compliancy and ultimately stress.

On the upside, potentially income on services can be good if well managed however, unless you want to be that manager you will need to seek out, employ and retain a top person for that job also.

In summary:

• Capital & Cash flow

 

• Ongoing overheads

• Location and time restrictive

• High profit potential from services

A franchise can look like a great opportunity and many a fledgling entrepreneur will think he has found his or her answer.  The franchise company usually has a tried-and-tested business plan, with market research, suppliers, sometimes even included is demand generating marketing, and funding facilities.

These are all formulated into a working business solution that you can pickup and run, and that’s great!  Do not be surprised at the extend though of the premium asked for this.Perhaps once off, perhaps as a profit share as a percentage of revenue.  Occasionally both may be levied.

Also a franchise is often tied to a physical area so you again could be limited in the same way as a job may restrict you.

All in, a franchise could be summarized as ‘purchasing a job’.  It’s normally a business that works, but at a cost.

In summary:

• Cash flow and Capital

 

• Ongoing overheads, Royalties or fees

• Time and location restrictive

• Proven business system with support

Now what about the direct sales market?  Depending on the structure sometimes this can also be labeled as Network marketing. I would guess this may be the least researched entrepreneur idea or the three discussed, at least initially, however once discovered it can be quite attractive.

Direct sales / Network marketing is where you earn money by representing a company’s products and sell them in a drop ship fashion for a commission.  The business is scalable by sponsoring additional distributors who would do the selling and recruiting in the same way. And you may even earn a partial commission from their sales as well…

Note though these distributors would be independent businesses and not formally employed by you, so they would not come with the responsibilities of employees.  Importantly as they will directly earn for you, it would be in your interest to mentor them soundly.

You typically don’t have to carry inventory, so you won’t have to fund that or provide premises to store it, or transport to deliver it.  Customer service, administration etc are for the most part handled by “the company”.  Similar to a franchise a lot of proven, working business information and systems will be available to the business owners…

The person who enrolled you into the business may also be incentivised (as described above) to get you and keep you in profit and this to would contribute to a rapid successful result.

In summary:

• Stock and staff freedom.

 

• Minimal running costs.

 

• small or no phyisical area restrictions or limitations.

• Scalable.

 

• Proven / Working business model with support.

Out of the 3 business models discussed the direct sales seems to offer the best chance of the best success with the most freedom.

More great info and entrepreneur ideas and resources are on my blog at http://richardbaldock.com/entrepreneur-ideas