Want to start your own business and generate income while being your own boss? Sounds great, but with so many ways to get started, it can be difficult to choose the right path and get things going.
We compared 3 different paths to starting your own business.
The initial investment to start up a business with an idea you might have can easily be in the thousands if not more. In order to succeed in building a traditional startup, you need a full-time commitment. As most startup entrepreneurs know, it can take years to get to profitability with not much support from anyone.
Startups require significant inventory which can consume the majority of revenues.
If you make it building a startup, an exit to a buyer is difficult and requires you to have built an innovative company. Although extremely hard and risky, startups are very rewarding for anyone that builds it into a successful business.
If it’s your first time venturing into business, it might be better to start with an easier path and learn the basics of making money as your own boss.
Franchises are a great way to get started with a business that’s already pre-packaged for you. The initial investment for a franchise generally is in the tens to hundreds of thousands.
The requirements by franchisors are strict, as they look for full-time owner-operators. Unlike startups, a positive aspect of franchises is that you’re generally profitable within a year or two.
Unfortunately, as with startups, franchises require inventory and overhead costs. But unlike startups, with franchises, one has to add additional franchise and royalty fees. Franchises provide a playbook on how to get started but offer little coaching and support. Generally, franchisors require a 5 to 10-year contract regardless of profitability.
The initial investment to get started in the gig economy is lower, making it accessible to all. What you need is typically items you already have at your disposal. On Airbnb, you need a room, on Uber, a car, on others, free time. on Trunkshop, the platform that lets anyone become an independent seller, you need a few hundred dollars of startup inventory.