Traditional Vs Home Business

Just about everyone you talk to today has always dreamed of owning their own home business. Few will ever take the plunge into business ownership. 

  We will take a look at the two different types of businesses, that you could get started in. 

A Traditional Business

A traditional business is often called a brick and mortar store and is more in line with what most people consider a business. This type of business can and often is very successful but many fail within the first few years estimated at 60 to 80%, with even more failing after that. 

Franchise businesses such as Wendy’s, McDonald’s and Jack-In-The-Box are booming. The companies behind the franchise make a percentage of profit from these business franchises. 

There are Franchises for just about every conceivable kind of business out there. The problem is that most cost $200,000 to $1,000,000 or more to start one. Then require an ongoing marketing budget for advertising, Franchise fees etc. 

A franchise will require a business plan, a map so to speak that spells out everything, this should also be a requirement in any home business opportunity. Some of the people I’ve spoke with that have left a franchise to start a home business put it this way. What they really owned was a job, with all the inherent headaches etc…  

Most of  these business owners worked 70 to 80 hours a week to bring home sometimes less than $150,000 a year in income.

With a traditional business the owner your boss leverages your time and all the other employees time to make a profit for the company. Bonuses are paid to management, you will be paid just enough to keep from leaving, never enough to get financially ahead. 

A home business 

Home business opportunities come in a variety of different types, Some fall into the category of a traditional business in that if you don’t work you don’t get paid, a direct sales / direct marketing approach. The best business models use leverage like realtors, insurance agents use. 

Leverage is it good for a home business owner? Lets face it, you can only work so many hours a day. What happens if you get sick, cannot work your opportunity? Through the power of leverage just like realtors and insurance agents use you can continue to produce an income from your business opportunity. Partners with you will be able to continue to make sales. Even if it was a purely internet business without this power of leverage, if you cannot work or show up your plan could fail.

Now imagine hundreds of people within your marketing network, working a few hours a day, acquiring customers and talking with other serious minded people seeking out information about a home business opportunities. Suddenly you could have 200 X 2 = 400 hours of work per day being accomplished that is the power of leverage. 

Today we live in the internet information age, big business realizes this. The internet has and will continue to provide knowledge and information about products and services. Through the various home business opportunities, you can compete with them. 

Many of the large scale businesses use small business owners to distribute for them, they know a consultative approach works best for their products. So What’s the answer? Now don’t cringe at the thought until you spent the time to investigate it thoroughly. Network Marketing / Multi-Level Marketing. This form of business model has produced more people earning a six figure income then any other form of home business opportunities to date.