One of the principles of wealth building is to create a business that you own that produces passive income. The goal is to go from being a W2 employee working for someone else to being an entrepreneur fully engaged in owning and operating your own business.
But which level is right for you? And, do you have what it takes?
Do you have the right self-motivation to be an entrepreneur?
Are you a good decision maker?
Is your drive strong enough to maintain the stamina it takes to run a business?
Do you have the financial security to take a risk?
Let’s look at two types of business, both requiring a commitment, but at different levels:
The MLM or Network Marketing Company
The start up costs and fees for a network marketing company are usually less than fifty dollars. Network marketing companies usually have low minimum monthly volume requirements. There are no employees with a network marketing company and you choose your own hours. In a network marketing company you can leverage the efforts of hundreds or thousands of sales associates to create substantial monthly passive income. In fact, network marketing companies are ideal for part-time work as you transition from your old job to your new business.
The Franchise or Business
With a franchise there are start up costs and fees that can be anywhere from a few thousand to hundreds of thousands of dollars. Franchises have on going monthly royalties. Franchises usually require one or more employees and long workweeks. It is very difficult as an owner to work part-time in a franchise. With a new business, finding a niche market can be challenging. This is not something that can be taught and can only be learned by experience.
Both types of opportunities can be very rewarding financially. The key is in understanding yourself, your abilities and the learning curve you face.
Be realistic about the time you can spend in a new endeavor.
Know your strengths when it comes to building and leading a team.
Think about your personal business psychology. Are you someone who can handle rejection and setbacks? Do you work well with other people? Are you motivated enough to work alone or do you prefer a team environment?
Are you prepared to make personal sacrifices in order to succeed?
Be realistic about your expectations and the commitment you can make to a new business. Sit down with family and friends and discuss your ideas. Listen to their feedback without judging. Draft a plan for your 6-month, one year, three year and five year goals before making any decisions to start. Remember, patience and careful planning are key to your success.
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