Business is changing, are you?
Business is changing.
During the industrial revolution in the early 19th century, Business ownership was bequeathed to the lucky few, and they employed the majority of Europe in factories, mines and pits. It was your destiny based upon what class you were born into where and how you were going to earn your money, and what sort of life you were most probably going to have. What is a real shame is across the entire demographic there was little difference in IQ and ambition, yet the working class people who were ambitious managed to get better paid positions which meant more work, more responsibility, stress, and usually an early death, whereby the elite got richer and richer and their work became less if they showed some aptitude. Now, however thanks to education and the sharing of knowledge since those dark days, anyone can now become a business owner and improve their lives. In fact the UK government Department of Trade and Industry said that Industry needs more thinkers and doers and that the majority of UK’s GDP will come from start-ups and SME’s.
It is ideal in most cases to have some start-up capital and most good business plans will get you around 5-10,000 USD in Government start-up grants, angel Investment or a simple business loan. Or maybe you have some saved. The challenge for most is the fear factor. The simple fact is: most businesses will fail, and this is true across all sectors of trade, and the leading contributing fact is usually they run out of cash flow, due to too many overheads or just waiting on credit due payments from clients etc.
Ideally a business should be high on Assets and low on liabilities, a tenet exemplified by Robert Kiyosaki in his bestselling series of books ‘Rich Dad Poor Dad’, where he explains that this advice is very simple but the difficulty most people have is recognising the difference between things that will make you money and things that will cost you money and not give back to you or your business.
Let’s have a look at three examples and say in these three examples you have $10,000 to start with:
The first is traditional business say a small traditional bricks and mortar shop with a big window looking out to the high street. First of all you will need to first have a lot of money for the deposit and then say two years rent, why two years? Because two years is the average time to establish a brand, and for potential customers to get to know your products and services. So say at $250 a month (I did say small!) there’s more than half your money gone already, then there are utilities and stock replacement to take care of each month, which really will leave little left to pay the business owner, and the time spent working very long hours would pay an employee handsomely, yet business owners always pay themselves last, which is a big mistake according to even age old philosophies, like the great book ‘The Richest man in Babylon’ that explains that ‘Ten percent of all you earn is yours to spend frivourously’ Even if you think you won’t, you will spend ten percent on yourself without even knowing. Traditionally this is the business with the most risk and the business route with the most failures.
Secondly you could buy a franchise, a business that is already branded and has a system already set up. For many this seems risk free, yet the franchise industry is littered with failure, because many go into it not expecting to work as hard as our shop worker in the previous example, when in fact it is in many ways harder, and a percentage of your business will always go to the franchise owner as you will be licence holder. Many a franchisee complain about the lack of creative licence to run your business the way you see fit, each franchise comes with a manual of what is allowed and what is not and more often the procedure is quite rigid, and many licence holders complain of being trapped until they can sell their franchise on. There are not many franchises you can buy for $10,000, and if you can find one; the stress in franchised business is often greater than a business you set up yourself.
Our third example is a way many people today from every walk of life are creating a better life for themselves, all they asked for is the chance, and networking gave it to them. People with little or even no investment are creating networks of people to help them reach a massive potential market leveraging the power of people. It is said we are only separated by six degrees, as in you can find a link to almost anyone in the world through six degrees of separation. Using this theory you could present a product to the entire world through just six people!
Large Direct Sales organisations give the sales responsibility to independent distributors. Distributors join their company with little or no investment and they are professionally trained as if they were paid sales people, and they sell to a small group of friends and family and they recruit friends to do the same. All the profits are shared out to the distribution network rather than shareholders, sales managers and the traditional business echelons. This way of business has created more millionaires in the free world than any other business. It is virtually risk free and people involved in these networks have high vitality, prestige and are generally much happier and less stressed probably due to the fact they did not need to spend $10,000 to start, like our traditional business people in shops and franchises.
They are not tied within any corporate structure and distributors can earn what they want through hard work and tenacity, they are often heard asking people with traditional jobs: “Does your boss want you to earn more than them? Of course not, then you would not need the job”
In the modern age; thankfully we now have more opportunity through our own evolution and education to become what we want to be, and many top mentors are forecasting that networking will become the future as more and more people from around the world are looking for the opportunity to create their own future, We sure don’t ‘want’ to work in the factories anymore.
So given the choice of the three examples, and not forsaking your own health, happiness, $10,000 you have to, or don’t have to spend, and your earning potential, which route would you take?
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