00,000
Now I am ready to spend my hard-earned money in a business. Shall I build traditional business that millions of people started or venture into new business model tapping the power of the internet?
There is no straight answer and no guarantee, which one is more superior. I personally believe that new internet business model is the way. This is because I am an average Joe who has regular daytime job to earn enough money to pay monthly bills. Let me explain.
I do not have a lot to spend. How can a person with less than $30,000 a year start a brick and mortar business or franchise? You can find one or two partners to start but usually it would not last long. It would be harder to manage and you can say there will not be any argument or conflict of interest. In any franchise, you need to invest at least $250,000 to start up. That does not include salary, employees, inventory, taxes, insurance and many more. As a general guide, you need five years to profit. That is your return of investment.
I find that owning a franchise will take more of your time. You will spend more time at your shop. That is against our goal of gaining time freedom. The reasons you want to own a business are gaining more time with family, earning more money even when you are sleeping and enjoy lifestyle of your choice. You cannot get that with traditional brick and mortar business model.
Now let us look at the new internet business model. First, you do not have to spend hundred thousands of dollars to start your business. You are on your own. This might not be a bad thing. You take control and responsible for all your actions. You do not blame anyone else except you. Of course, I am suggesting blaming yourself for every failure or mistake you made along the way.
Since you do not have to hire anyone, you keep all the profit yourself. At times, you might need to outsource specific task to someone else as part of your product creation. That is one time deal. You are paid almost immediately when someone buy your product. It is nice, smooth and clean transaction.
The best part is you do not have to keep inventory. Therefore, you do not need insurance and you pay less tax. No rent except your internet connection and own computer. You can work from home, during vacation on a cruise or anywhere you want as long as there is internet connection. There is no fix hour.
After reviewing all the pros and cons for each model and I make a decision to go for the new internet business model. All I can say is it fits me well and I just love the way I am. If you are looking to build a long lasting business, make sure you know which business model you want to have. I wish good luck and all the best.
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