Given the modern economic reality of our time, more people are deciding to go it alone and start their own business.
Some people do it because they have spent years training and becoming educated only to find the “job” they thought was waiting for them doesn’t actually exist.
Others do it because the 9 to 5 grind simply doesn’t work for them and they would rather spend their time creating or working with something that they love and feel passionate about.
Still others want to create a work schedule that fits them and their own life goals.
There are many reasons to want to go out on your own. No matter what your motivation is, you can start today. Tomorrow is the place where dreams go to never come to fruition.
Here are 4 common paths to entrepreneurship and why multi-level marketing is the best one.
1) Start from scratch
Starting your business from scratch means your starting at the ground level. Floor one. No one knows who you are or what you’re doing until you speak up.
From scratch means you scrape together seed capital (the initial funding used to begin creating a business or a new product) and begin by telling the world what you are up to by advertising, marketing, and word of mouth.
Then, you work your bag off. You sink fifteen hours a day, six or seven days a week into making your new business work.
It can be very exciting – you’re creating something brand new and you’re challenging your business acumen against many others who are already established. Some people thrive in this environment. Many perish.
According to the Bureau of Labor Statistics, 80% of business with employees survive their first year. After that, the number steadily decreases. 70% survive the second year, 50% survive year 5, and 30% survive year 10.
2) Buy a going concern
Another path to entrepreneurship is to buy a going concern.
A going concern is an accounting term. It means that the company is doing well, and it has the resources to continue operating indefinitely until it provides evidence to the contrary.
Buying a franchise or buying an already established business are both ways to buy a going concern.
The main reasons acquiring a going concern fail are because of a lack of adequate funding, because a business plan isn’t prepared, or because of a lack of teamwork.
While many people say they want to run their own business, there are comparatively fewer that are willing to put their money where their mouth is when it comes time to making the business work.
Running a business requires organization, promotion, and risk management. Managing risks requires management and marketing skills and, above all else, commitment. If you’re risking a significant amount of capital, whether its from your savings or from borrowing against your assets, you need to be sure you have the experience, knowledge, personal traits, and the habits you need to succeed.
Even a company that is doing well can falter under new management. The initial excitement that comes with owning a business of your own can carry you passed some obstacles, but just because a business is a going concern when you purchase it, doesn’t mean it will remain so.
3) Start a new concern with a partner
Starting a business with a partner can be rewarding. It can also be a huge drag and damaging to the relationship.
The most successful, rewarding partnerships occur when each member has skills or knowledge that the other lacks. When this balance doesn’t exist, the relationship has a higher probability of becoming toxic, as one partner may begin to feel like they are shouldering most of the weight of the new business and the other is just along for the ride.
4) Multi-level marketing
Many people do not consider themselves to be business savvy, a marketing mogul, or have an original, creative idea they feel could turn into a legitimate business. Many of these people, however, still dream of working for themselves and starting a successful endeavor of their own.
Multi-level marketing is yet another path to entrepreneurship, and it may be the most enticing one.
Multi-level marketing (also known as network marketing) is a business model. It is a strategy used by some direct sales companies that encourages existing distributors to recruit new distributors. New recruits become part of the distributor’s “downline” and a percentage of the recruit’s sales are given to the distributor that recruited them.
Multi-level marketing is easier than starting a business from scratch, it doesn’t require the initial capital that purchasing a going concern does, and it comes without the risks of starting a new venture with a partner.
This path to entrepreneurship is attractive because you don’t have to start at the bottom and go into it alone. You start your own business with a product that has proven brand recognition and has programs that provide information on finding people, how to sponsor them, and how to train them.
Multi-level marketing is somewhat like buying a franchise, but without the 20,000 to 200,000-dollar initial investment that purchasing a franchise often requires.
But that doesn’t mean you don’t need any investment at all. It’s just not as substantial as a franchise. You still need to invest in the product for use and for demonstration.
With multi-level marketing you are going into business for yourself. You are the Chairman of the Board. That means you need to make a financial investment in the product and a personal investment in your recruits. The more involved you are, the more likely you are to find others who are willing to make the same commitment that you did.
Being personally invested in the company and the idea of owning your own business is the only way to become successful with multi-level marketing. The people who go into it thinking it’s a way to easy success and wealth often become disillusioned, quit, and tarnish the industry as a whole.
Sources and further reading
Network Marketing Success for Everyone – Lyle Manery