In the business world, there are always big possibilities waiting out there for anyone who wants to start and run their own empire. How can you possibly trim them down to find the best type of business that is right for you? Here are the business types that will give you a clear idea of what exactly you’re venturing on.
- 1. Wholesale or retail? This depends on where you want to be positioned in the supply chain. The difference between retail and wholesale differ on the number of goods and the person whom you will supply the products. A wholesaler purchase goods in large amount from a manufacturer then sell it to retailers and distributors. On the contrary, retail businesses sell merchandise directly to customers and usually these are in small quantities.
- 2. Franchise or Independent? Most companies offer franchising of their products and brand. Works as a copy of a company, franchisers are given the right to sell the parent company’s services and /or products in a certain area. Aside from the main fee, if you buy a franchise, you will have to pay royalties and other additional charges to the franchisor. As a franchiser, you will be bound to the terms and condition of the agreement that often lay out how you will do the business.
An independent business solely relay on the owner in creating and nurturing it. This type of business allows you to have a freedom and control that you won’t get from owning a franchise.
- 3. Goods, services, or both? Trained professionals have the option to take a business that is both focused on goods and services. For example, a doctor can concentrate on his expertise of saving people’s lives while selling merchandise like medicines. However, those people who want to venture on a business but is not a trained professional has to decide whether to focus on goods or services. Remember that no matter what type of business you put up, it will always be involved in sales.
- 4. Which industry to work on? Although going on a business that interest you make a lot of sense, most experts suggest that you get into a business that you are not interested but have expertise or experience. If not then you have to spend time and money learning more about the business that you don’t have experience on. Avoid making costly mistake of venturing in a business that you do not have the necessary knowledge with.
Once you have established the type of business you want to put up, the next step involves writing your business plan. Take your time to read on more tips to have a smooth start for your business.