By Suzanne Delaney, Career & Business Coach
In my last blog we discussed “What Should I Do With My Life?” This time I am going to dig deeper into the self-employment option. Once you have determined that self-employment may have the potential to bring you closer to your life goals it is time to go exploring. In today’s blog we will look at the three different avenues to enter self-employment.
Independent Business
A successful independent business requires a lot of research and upfront legwork. You need to:
- Identify a product or service that meets a need that is not already being satisfied by another business in your market.
- Create a business plan. This may require education on business methods so you know what a marketing plan and other important aspects of the plan involve.
- Research on the market trends and who exactly will be buying your product or service.
It is important to have your business plan reviewed by someone with business expertise. I recommend your local SCORE counselor (www.score.org) – their services are free. And remember, the top reason that businesses fail is under capitalization, so make sure you have over estimated how much working capital you will need to get to break even.
Resale Business
Buying a resale business can make a lot of sense. An existing business will already have cash flow and will cut down on your time to profitability. Often times the previous owner will train you how to operate this business. But you will pay more up front because of that cash flow. A few areas to look out for:
- If the cash flow is at its peak there won’t be much opportunity to grow it and you may see it actually decline.
- Good will can often times leave with the previous owner causing you to have fewer remaining customers than you anticipate.
- It can be very difficult to determine the true value of a resale business, be sure to work with a local business broker and accountant who can lend you expertise and advice.
Franchise Business
Purchasing a franchise takes a lot of the guesswork and trial-and-error out of self-employment. With a franchise you get a proven system, although how proven depends on the age and size of the franchise. You also receive extensive training on every aspect of the business so industry experience is not required. And you also get ongoing support from the franchisor throughout the life of your contract.
There are also business opportunities, license opportunities, and distributorships that are all system based and can provide many of the same benefits. To ensure you find the right franchise it’s important that you do your homework by looking at several different models, and talking to both the franchisor and franchisees before choosing your direction. A coach or broker will prove invaluable during this process.
Ultimately, self-employment can be a great way to take control of your future and make an investment in yourself. If you’ve been consistently successful in your career there is a good probability that you will be successful as a business owner. Just be sure to evaluate your options and find something that will leverage your strengths while helping you overcome your weaknesses.
But you’ll never know unless you take the time to explore your self-employment options.
About Suzanne Delany
Suzanne helps individuals looking to become entrepreneurs by introducing them to a variety of franchise and similar system based business opportunities. She coaches them through the evaluation process to ensure they find the business that fits their goals, needs, and expectations. She also provides business coaching services to both franchise and independent businesses that are looking to strengthen or grow the value of their business through a proven process of awareness, education, and accountability.
