Monthly Archives: October 2017

Investing in Ownership

Investing is a hazardous business. It comes with a lot of risks, but offers the possibility of great rewards. Good investments are not all about luck. They are based on knowledge, research and good business sense. Nowhere are these attributes more important than in the realm of franchise ownership. Owning a business is more than just a financial investment, it is an investment of time and energy.

Franchise ownership requires a great deal more commitment than other, more passive forms of investing such as real estate and the stock market. Franchise ownership requires you to not only put your money on the line, but also your time, your energy and very possibly even your livelihood. However, business ownership also offers the chance for a significantly greater return on this investment than any passive investment ever could. This Return on Investment (or ROI), is your bottom line in deciding whether or not a franchise is right for you. You should have a clear idea of what you expect to get back from your investment of time and money, and should do the research to find out if the franchise you are looking at is capable of meeting those expectations.

Setting Expectations

Making the Transition to Home Business Owner

I believe that that statistics that are out regarding the high percentage of home businesses that fail are not so much due to the flaws of the business model, but simply that most people who start some type of home business just cannot mentally and emotionally make the change from employee to business owner. This article is going to discuss what some of those mental blocks may be, some ideas to overcome them, and long term strategies for home business ownership.

When I speak of home businesses, let me first define what I mean. A home business is any business that you can successfully operate out of your home. Some examples of this are network marketing, multilevel marketing and affiliate businesses. Also included would be any type of service such as consulting, lawn care, basket making, or any other type of business where you work in an office space and use your home as the base of all operations.

While almost every red-blooded American has said at one time, “I would love to do something like that,” the reality is they have been programmed through 13 years of school, plus college to be an employee, to work in a team, to have meetings, to answer to a boss, to work 9 to 5, to do work for someone else, to be conservative, to not take risks, to be lazy. It is not easy to undo what has been beaten into our heads for so many years. Running your own business from home means doing almost the opposite of everything that was just listed.

The Wonderful World Of Business

No matter how a company is structured, when it comes to the private sector, the number one goal is to be profitable. On the surface this may sound overly harsh and callous. Remember, though, there can be a profoundly negative ripple effect when companies are in the red.

If a company is publicly held (more on this later), and is losing money, then there is a real chance that its stock price will suffer. As such, all investors can take a hit to their net worth. If these investors are now worth less, then they might spend less, which in turn may adversely affect other sectors of the economy. Moreover, and regardless if it is public or private, a company in the red might have to rethink its personnel requirements. That is, they could lay off workers, freeze future hiring, or both.

So with the supposition that profitability is the objective for all business entities (excluding not-for-profit organizations) as a backdrop, let’s start with the most common type of business entity which is the sole proprietorship. It is a company owned by one individual. This individual may be the only employee, or he or she may have employees. The proprietor could work from home or have a storefront. What they definitely have, though, is unlimited liability for any debts that the company incurs.