People often think that being a business owner is all about having stacks of dollars, being the boss that barks out orders in a company, and living a stress-free life. This is hardly true. Business owners are the ones responsible for organizing systems for the production, distribution, and consumption of goods and services. They build systems while leading and growing the people within them. Being a business owner is both risky and rewarding.
Be sure that as risky as being a business owner is, the rewards are juicy. Owning a business is a sure way to financial freedom. If you play your cards well, not only do you get to retire early but also have an opportunity to build a lasting legacy.
Let me elaborate on the risks and rewards so you can appropriately choose which of the three ways to become a business owner suits you best.
1. Start Your Own Business from the Scratch:
This is for those who are capable of handling 'the unknown.' They are mostly visionary- as starting anything requires having a vision of what the end would be. This person identifies a problem and comes up with a unique or existing solution. To succeed, they have to come up with better ways to deliver their goods and services other than the ones already existing.
People who start their business from scratch have the tenancy to work against all odds, work alone, or with a small group of people. Their business idea excites them, they are extremely focused, resilient, and are willing to conquer any business adversity. They are willing to spend money to make sure their business gains ground and functions above other competitors.
Startups require capital to start running effectively. People who go into this either have a deep pocket or will take loans from banks, family, or friends.
One great thing about starting a business from scratch is that you acquire lots of skills as you grow. These skills can be applied to other ventures.
2. Buy an Existing Business
This is less risky than starting your business from scratch. There is more security here. A laid down system of generating income, existing employees, existing customers, and maybe an existing building are some of the benefits of buying an existing business.
The person you are buying the business from left an already set up payroll plus a building with all the necessary equipment needed to run the business. Financially, the business has cash flow, past record of sales, and income so it won't be hard if you decide to get a loan from the bank.
Buying the business gives you the right to make changes in it. You could make changes that will make it run better, have smoother operations, and be more advanced.
I advise you to have background knowledge of the business you are buying because the better you know it, the higher your probability to run it better than the former owner.
As you decide to buy one business, you might as well acquire more. This is a powerful way to scale your economy and achieve growth faster. Acquisitions and mergers are strategies used by big corporations. Shouldn't you apply it to your business too?
3. Franchise ownership
Starting your business fro match may seem intimidating and buying an already existing business may not be comfortable. You could be suited for acquiring a franchise.
Acquiring a franchise would make you a franchisee. You pay a sum of money to the franchiser to be endowed with the right to use his trademark, brand name, a system of doing business, and his ongoing support. You also pay royalties continually as you go to the franchiser. By paying royalties, I mean a part of your sales. Franchisers provide support by giving training and their long time tested models of business. Franchisers could also give you loans.
Are you ready for the unknown? You are launching into the unknown of multiple possible setbacks. Be sure to be mentally prepared.
Remember - there is no overnight success. It takes years and months of dedicated hard work, learning, failure. This is the real joiner of a business owner.
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