Business startup ideas that put you in charge. You're the Boss!

You're the Boss

Business startup ideas that put you in charge.

 

When people talk about starting new businesses, they sometimes cite the rate of failure—as if budding entrepreneurs must be crazy to take the risk. The truth is that, historically speaking, the odds don’t heavily favor failure or success. So whether that figurative glass is half full or half empty rests entirely on your perception. However, if controlling your own schedule and income sounds crazy, then who wants to be sane?

With so many types of business opportunities, figuring out which is best for you can be overwhelming. Below, i have summarised afew and hope you find something special for you to start on. Enjoy!

Businesses to Consider:

• Consulting
• Direct selling / Network Marketing Opportunities
• Franchise Opportunities
• Microbusiness
• Online Opportunities
• Real Estate
• Service Startups 

Consulting

Consultants coach clients in everything from management and human resources to image, media and the best ways to implement computers/technology. Not only do consultants possess expertise in specific areas, they also must be able to impart knowledge and generate value for their clients.

If you’re interested in consulting, you first need to identify your strength or expertise and then consider whether there’s a market for it. If you really know your stuff and can clearly express your ideas, then your services should sell themselves. However, the greater challenge is finding and keeping a steady flow of clients. You’ll need to actively network, follow up and find new contacts, especially when you first start out. Experts agree you need to give yourself at least a year to do that to succeed. Prospective clients need to feel a sense of trust that their consultant has their best interests at heart. That doesn’t always happen right away.

Technology makes it easy for you to be available to clients in far-flung places. While good consultants make it a point to meet with clients in person, follow-up meetings and conference calls can often be done remotely.

Establishing your rates can be difficult. You can charge an hourly, project or even retainer rate. Really good consultants can charge fees based on the value and results they provide. For example, if a consultant teaches a company’s sales staff better strategies that lead to a 10 percent increase in sales, isn’t the consultant worth a 1 percent return on the increased profit? Businesses are clearly willing to pony up the dough for results.

The Bottom Line
Don’t undercapitalize. While consulting doesn’t require significant startup costs, you still need to pay for living expenses while building your business. If you’re serious about a career in consulting, you will eventually need to do it full time to be more accessible to clients. You’ll need at least six months’ to a year’s living expenses.

Initial basic equipment costs will be for a laptop and updated software, a fax machine, additional phone line for said fax machine, a quality printer/scanner, postage meter and scale, a smart phone with a forgiving e-mail/minutes plan, and a digital recorder. All brand new, you could spend anywhere from $3,500 to $10,000 for all of it. However, most people already own several of these items and don’t have to start from scratch.

Is It Right for You?
Personality traits required: Confidence, persuasiveness, ability to speak well in front of groups and business owners, active listening, responsiveness.

Risks: This is really a sales gig in disguise. Regardless of your talents and knowledge, no one will hire you if you don’t sell yourself and regularly seek out new clients.

Potential income: Varies greatly depending on years of experience and expertise. 

Pros and Cons at a Glance

1. Low startup costs	1. Time-intensive to build client base
2. Improving businesses/individuals is rewarding	2. Methodical, active networking required constantly
3. Create your own hours	3. Travel often required
4. High potential income	4. BlackBerry addiction likely

Direct Selling/Network Marketing

In its simplest form, direct selling (aka network marketing) is nothing more than one person promoting or selling a product or service directly to another. Today, an endless variety of products are distributed using the direct selling business model, including vitamins, weight-loss aids, cleaning products, clothing, jewelry, home décor, cookware, legal insurance, travel services, financial products, books, toys, educational and motivational products… and the list goes on. If you have an interest in a particular industry, chances are there’s a direct selling company that supplies products in that category.

Rather than paying for massive advertising efforts and retail outlets, direct selling companies rely on an independent sales force to spread the word about them and their products. Many companies have added social media, print and broadcast advertising campaigns, but most advertising is done person to person, face to face… or Facebook to Facebook.

Perks of becoming a distributor include deep discounts on products and compensation for helping the company attract other distributors. Those who develop a network of independent representatives can leverage their time and maximize their earning potential. Not only are they paid for their own sales, they’re paid a percentage of the sales made by members of their organization (or downline). The more people a direct seller brings into the company, the greater his or her earning potential.

Other benefits can include bonuses and prizes for a job well done. These can include luxury travel, fine jewelry, cash or cars. Beyond the tangible rewards, direct sellers gain other benefits, such as communication and sales skills, greater self-confidence and leadership capabilities.

Getting started as a direct selling representative involves signing on with a company and purchasing a startup kit with brochures, access to online resources and product samples. In many cases, free local training, webinars and teleconferences are available to help representatives learn more. Many companies also hold annual conferences where they offer additional training and recognition.

The Bottom Line
You will need to purchase a startup kit and sign an agreement to become part of a direct selling company. To receive full commissions, you may be required to purchase products on a monthly, bimonthly, quarterly or annual basis, depending on the company.

This type of business can be done in as many or as few hours a week as you choose, which makes it ideal as an income supplement or for building up to a certain level of earnings before leaving a full-time job. That said, to earn a substantial regular commission check, you must commit to treating this opportunity as seriously as you would any other job or business endeavor. You are the boss… your hours are flexible, but not optional.

Is It Right for You?
Recommended skill set: People skills, consistency, self-confidence, drive to grow and market business, belief in the product or service you are promoting.

Risks: With some companies, representatives are expected to stock inventory or receive regular shipments of product. If you do not use or sell the products consistently, you could end up with a garage full of boxes. False expectations are one of the greatest risks.

Potential income: Varies greatly (from $0 to $10,000 or more per month), depending on your level of effort, skill and the company’s compensation plan.

Pros and Cons at a Glance

1. Minimal investment	1. No guaranteed income
2. Easy to fit into an already busy schedule	2. You may have to regularly place orders to receive commissions
3. Residual income	3. Overcoming misconceptions about the industry
4. Maximum control over your time and income	4. It may take months to build to a substantial level of income
5. Built-in personal growth opportunities	5. Products or services without a unique selling position may be difficult to sell

Franchise Opportunities

If you’re passionate about a specific product or service, you may be surprised to find that a franchise for it probably already exists. So, should you go into business for yourself or purchase a franchise?

Owning a franchise significantly reduces your risk. Franchises have brand recognition and advertising strength that provide staying power during tough times.

Plus, franchisors profit when their new ventures do well, so it’s in their interest to provide the tools and assistance you need. Other franchisees also are a valuable resource for advising you through struggles. (On that note, it’s a good idea to interview a few franchisees before you invest to get a better idea of what to expect).

While many high-spirited entrepreneurial types would take the risk of going it alone to be their own masters, investing in a franchise doesn’t mean you won’t have any control. As a franchisee, you still have to manage, market and promote your business, which provides plenty of opportunity for implementing your own ideas.

The Bottom Line
Initial franchise fees range from several thousand to several hundred thousand dollars, according to the Federal Trade Commission. In addition, there may be significant costs to equip the new operation and buy inventory. Then you must pay ongoing royalty fees (usually a percentage of the monthly gross earnings) to use the name and brand for the duration of your agreement.

On the upside, some costs are shared. As part of a larger group, you can buy business goods at a lower cost. Also, your advertising fees pay for regional and national ad campaigns and marketing you wouldn’t be able to afford on your own, keeping your business top of mind for consumers seeking brands they know and trust.

It may be easier to start a franchise than your own business from scratch, but standard operations and systems alone will not guarantee you success. It’s your ability to consistently oversee and implement those standards that will help you make a profit.

Also, not all franchises are created equal. A weak franchise program is not worth your time or money. Do your research, starting by requesting a copy of the Franchise Disclosure Document (FDD), which all franchises are required by law to provide to prospective buyers.

Is It Right for You?
Recommended skill set: Organization, consistency, confidence, drive to grow and market business, loyalty to and belief in the system in which you are participating.

Risks: Initial franchise fees may be nonrefundable. Ongoing fees cut into your revenue and many franchises charge required royalties regardless of whether the business is succeeding or not. Also, popular chains can saturate the market and negatively impact your sales.

Pros & Cons at a Glance 

1. Standardized operations/systems/training	1. Less control
2. Less risk of failure	2. Non-negotiable contracts
3. Brand awareness	3. Ongoing franchise/royalty fees
4. Shared advertising	4. Additional required fees (signs, ads, etc.)
5. Easier to secure financing	5. High initial investment

Microbusiness

The term microbusiness officially applies to businesses operating out of the home with fewer than five employees and little required startup capital. Unofficially, the term can apply to all the independents out there who consider themselves self-employed.

Experts predict the number of microbusinesses will continue to grow through 2009 in direct response to the shrinking of traditional businesses. Those who are laid off are creating their own jobs. Also, at-home parents are creating side jobs to bring in additional income, like the mom who offers scrapbook services to neighbors or does event planning on the weekends.

Some microbusinesses start out as small supplemental jobs and turn into full-time operations. You may have heard of a certain pretzel company called Auntie Anne’s, which started as Anne Beiler’s single pretzel stand at a farmer’s market.

If you make something—whether it’s homemade biscotti, such as rapidly expanding Miami-based Jennifer’s Homemade baked goods, or a stylish diaper bag for guys, like the Los Angeles-based Diaper Dude—then this could be the right business for you.

Additionally, there is also growth in the virtual sector of at-home business. Telecommuting in areas ranging from copywriting and Web design to computer tech support, customer support call services and even tutoring are gaining popularity.

The Bottom Line
Check your state and local requirements for registering your business name and to determine whether you need permits or licenses for operating out of your home.

Working from home, especially if you have a designated work space, allows you all kinds of tax deductions. It’s also a good idea to talk with an accountant before you get started about expenditures you should monitor.

Although microbusinesses involve low startup costs, that doesn’t mean you won’t need any money. Figure out what kind of materials/equipment and marketing/advertising you’ll need and apply for a loan. The Small Business Administration offers microloans to qualified entrepreneurs.

Is It Right For You?
Personality traits required: Passion for business, self-motivation, proactive work style, organization, discipline.

Risk: It all falls on you to succeed, which can be said for any business owner. However, a microbusiness, by definition, has very little or no support.

Potential income: $0 to the sky is the limit.

Pros and Cons at a Glance

1. Work from home	1. Hard to separate work/personal life
2. Tax benefits	2. Inconsistent income
3. Low operating expenses	3. Have to wear many hats (e.g., marketer, manager, bill collector, etc.)

Online Opportunities

If you’ve got something to say or sell, odds are there are people surfing the Internet at this very moment who want to read it or buy it. With an estimated 1.5 billion people using the Internet worldwide, there are opportunities to reach them at every click.

Setting up shop online is quick and easy. The drawback is that it’s easy for everyone, so websites are plentiful and competition is fierce. Standing out from the crowd and getting noticed isn’t so easy. It’s wise to develop a niche and target a specific group of consumers.

It’s impossible to offer a better price than massive established sites or online retailers with giant stocked warehouses so you have to offer something else, whether it’s a unique product or superior customer service. Do your homework to determine what and how to sell. Research your target consumer and find out what his needs are and especially what needs aren’t being met.

Retail can be tricky since there is so much available on the Internet these days. However, if you have a real niche product, the Internet may be the best place to reach potential customers. Being able to lend a level of expertise helps establish you as an authority on the product—another selling point.

The Bottom Line
Domain names are cheap (about $10 a year). Web hosting is also inexpensive if you have the know-how to build the site yourself ($5-$12 per month). However, you can also buy packages that offer design and maintenance services. Depending on your needs and the sophistication of your site, prices vary greatly. To give you an idea, Register.com offers a standard 10-page website for $55 a month.

Most important is a reliable server. If the server goes down, your clients can’t use your site and that puts your business at a complete standstill.

Also, just because you could feasibly set up an online business overnight doesn’t mean you should.
Just like any other business, a well researched online business plan is the key to getting off to a good start and laying the foundation for a profitable enterprise.

Is It Right for You?
Personality traits required: Self-motivation, drive, good multitasker, organization, attention to details, not afraid of technology and automation.

Risks: Although the financial risk is low, you need to spend a significant amount of time marketing.
Also, watch out for so-called opportunities that ask for an upfront investment or costly tutorial programs that promise to make you a millionaire.

Potential Income: This depends greatly on your knowledge, experience and creativity.

 

Pros and Cons at a Glance

1. Can be done exclusively from home	1. Hard to stand out on the Internet
2. Quick to get up and running	2. Time-intensive to build awareness/traffic
3. Websites can be maintained at night/on weekends	3. For retail, difficult to compete with big-box retailers
4. Low-cost startup	4. You can’t see your customers

Real Estate Investing

With housing prices starting to bottom out, now is a great time to consider real estate opportunities.  

However, since credit remains tight, unless you plan to pay cash, your first step might involve researching financing options.

You also need to look into interest rates, which will be higher for investment properties than for primary residences, as well as local tax rates, insurance costs, fees or maintenance expenses that might be associated with the property and, if you plan to rent, local vacancy rates and the average length of time rentals remain vacant. Make sure to look into the tax benefits for investment properties, which will offset some of your expenses.

As you start your property search, remember that local trends are important—not national ones.
Property values and rates of appreciation vary dramatically from one neighborhood to the next, depending on the local job market, supply and demand, schools and many other factors.

Don’t be afraid to take a seminar or class to learn more. Real estate investment is often a long-term commitment so it’s important to get all the facts before diving into the market.

The Bottom Line
Borrowing money for real estate is a serious commitment, and financial institutions are more stringent about loaning for an investment property than for your primary residence. However, there are significant tax benefits for investment property.

Being a landlord isn’t for everyone, and you can run into cash-flow problems if you have extended vacancies or tenants who don’t pay the rent on time. Don’t forget to consider ongoing expenses for maintenance and repairs.

Most experts agree that if you hang onto a property long enough, it will eventually appreciate. Historically, long-term investors have seen an average annual rate of return between 5 and 9 percent on property investments. But you’ll need to carefully calculate how much money you can tie up in real estate waiting for that eventuality.

Is It Right for You?
Personality traits required: Patience, eye for details in everything from contracts to home repairs, people skills, organization, realistic expectations.

Risks: It’s possible the investment property could lose value or take many years to appreciate. Also, there likely will be vacancy periods, and you’ll have expenses for maintenance and repairs.

Pros and Cons at a Glance

1. Direct control of your investment	1. Markets can be fickle so no guarantees
2. Monthly income from tenants	2. Most people have to be landlords as well as investors to afford properties
3. True value: Property is an asset and basic need which will always have some value	3. Securing financing can be tough for pure investments
4. Tax benefits	4. Cash-flow issues when you have vacancies
5. Your investment is insured	5. Need to know lots of details upfront (e.g., mortgages, titles, insurance, negotiation, etc.)

Service Startups

If you already possess a specific skill (trust us, you’ll find one if you think hard enough), all you need is guts, capital and some paperwork to start your own business.

Service businesses are as varied as the people who form them and include everything from cleaning, decorating and working as a personal assistant to landscaping, babysitting and teaching piano. As always, doing your homework is an important step before jumping into a new business.

As with other businesses, timing and local competition will have a direct bearing on your success. For example, the large supply of homes for sale has resulted in increased demand for home staging specialists, who can help accentuate a home’s best features to attract buyers.

The most important first step is figuring out what you can do, or would like to do and are willing to learn, as a service to others. Then, you may be able to sell your services part time to test the market.
Many customers actually look for services available when they are at home (i.e., nights and weekends). So if you are uncertain about going out on your own full time, you risk little by moonlighting in your free time.

The Bottom Line
Regardless of the business you plan to start, you would be wise to look up the local competition and wiser to offer something to customers that the competition does not. Research what the competition charges to come up with your pricing; the idea is to be competitive but fair.

However, don’t underestimate the value of your services. Something that’s easy for you may not be so easy for everyone else. If you possess a skill or knowledge that you can provide/teach well, it may be very valuable to your customer.

Is It Right for You?
Personality traits required: Quality customer service skills, strong work ethic, commitment to projects, ability to adapt to different customer needs.

Risks: Service businesses grow fastest by word-of-mouth and consistent referrals. But without proper marketing, it’s difficult for a small service operation to take off.

Potential Income: Differs depending on location, industry and experience. For example, a piano teacher can charge anywhere from $25 to $100 an hour, depending on the region and personal experience.
Determine your potential income by looking up the rates other professionals in your area are charging.

Pros and Cons at a Glance

1. No storefront required	1. Hard to get your name out there
2. Set your own prices and schedule	2. Referrals and word-of-mouth take time to build
3. You can choose which jobs to work on	3. May need a few permits/licenses to practice on your own
4. Do something you’re passionate about	4. Inconsistent incom

Go succeed and be who you want to be.

“sweat a little Be better”

Africa’s finest!

Brian Pade