Think Big Picture on Business Ownership | The Bigger Picture


Think Bigger Picture | Discussions About Big Picture Issues That Really Matter
The Gini Coefficient | Think Bigger Picture
The Wealth Gap | Think Bigger Picture
Success | The Bigger Picture
Taxes | The Bigger Picture
Business Ownership | The Bigger Picture
Big Business | The Bigger Picture
Extreme Wealth | The Bigger Picture
Careers | The Bigger Picture
Main Page | The Bigger Picture
Think Big Picture on Money | The Bigger Picture
Copyright 2014 Christopher Wicks | All Rights Reserved | Privacy Policy | Terms & Conditions | Contact Us
Discussion #7 - Business Ownership

As the global game of musical jobs intensifies, many are turning to business ownership as a viable alternative. This is not a bad thing, as jobs would not exist without a business making a profit underneath, from which wages are paid. Owning a business has it's risks, but certainly has it's rewards. Being your own boss, self-motivating & there is really no ceiling on how much you can earn/make (if you're willing to have employees). There are 2 major options when choosing to start or buy a business; franchise or non-franchise. The differences are pretty major. I have personally owned both, am certainly not a guru on the subject, but will share what I've experienced/learned. Being a franchisee means that you own a license/contract to run a business to the satisfaction of the franchisor. You will own chattels & possibly even the real estate, but this contract is really the essence of what you own. Pro's to being a franchisee are:

1. Marketing muscle (shared expense)
2. Consumer confidence (the public generally love franchises)
3. Instant goodwill (reputation) & formula for success
4. Ongoing support (assistance, inspections & discipline)

The pro's to being an independent are:

1. Be your own boss
2. Come up with your own ideas & marketing strategies
3. Much more control over your life & business

There are a few other differences, the main ones being your chances of success are lower as an independent, & (in my opinion) your quality-of-life is higher as an independent. Also, big corporations and franchises are gobbling up most of the market share. Your best bet if you would like to start or buy a non-franchise; choose a business that the big corp.'s will likely never be interested in. Also, if you are successful as an independent business owner, you may decide one day to become a franchisor yourself.

The biggest key to success (as noted by some of the richest entrepreneurs in the world) is perseverance. Virtually all successful business owners have failed numerous times before finally succeeding. There is business acumen built from both. Competition in this era is ferocious, so if you feel you have a great idea/formula for success, just keep on pumping away at it (while ignoring the nervous/negative nellies around you).

Some do get extremely lucky, and their business does take off like a rocket right out of the gate. The vast majority (of successful businesses) however, do not. Many fizzle out, fizzle back in, sputter, or just outright don't take for many years before finally taking off. This can be the most challenging aspect of starting a new business from scratch. Knowing when to persevere for years, and when to pack it in and try something else.

Approx. 75% of the non-franchise "bricks & mortar" business startups will fail, but this means that 25% will succeed. If you keep trying, the odds are very good that eventually you will be one of them. The vast majority of people in this world are only comfortable with the idea of having a job and getting a paycheck. This is actually a good thing, as it means less competition for you, both for customers and for employees.

Perception is also incredibly important in business. There is a perception "hump" that must be crossed over. Once this is achieved, things really start to take off. Marketing is also hugely critical in any form of venture. The marketing landscape has been changing dramatically recently, with traditional methods on the decline as more & more people are focussed on their digital devices, but really, it's whatever works. The main thing is that you do it.

People generally only support businesses which are viewed or perceived as already being successful, and not before. (sounds a bit dark, but it's a fact). This means that it's extremely wise to "fake it till you make it". Three more excellent keys to success would be to 1. Get/stay extremely organized. 2. Replace rushing with time management (whenever possible), and 3. Do not be afraid to put in lots of hours, especially since owning a business is normally far more exciting than punching a clock.

My final nugget of personal opinion to share on this subject is this: There is far more to success in life than just monetary wealth (since we are obviously not taking a dime of it with us). Balance your business goals with the goal of extending your (and your loved one's) healthy lifespan. Prioritize setting up your life to have enough quality leisure time to enjoy life long before retirement. When we are younger, our bodies can take the punishment of the inevitable stresses involved in this. As we age (normally around the 50 mark), the body becomes less able to take the punishment. If we wait until 65 to start slowing down and prioritize enjoying life, it may be far too late. This is where the notion of "Freedom 55" came from.
Discussion #7 - Business Ownership

As the global game of musical jobs intensifies, many are turning to business ownership as a viable alternative. This is not a bad thing, as jobs would not exist without a business making a profit underneath, from which wages are paid. Owning a business has it's risks, but certainly has it's rewards. Being your own boss, self-motivating & there is really no ceiling on how much you can earn/make (if you're willing to have employees). There are 2 major options when choosing to start or buy a business; franchise or non-franchise. The differences are pretty major. I have personally owned both, am certainly not a guru on the subject, but will share what I've experienced/learned. Being a franchisee means that you own a license/contract to run a business to the satisfaction of the franchisor. You will own chattels & possibly even the real estate, but this contract is really the essence of what you own. Pro's to being a franchisee are:

1. Marketing muscle (shared expense)
2. Consumer confidence (the public generally love franchises)
3. Instant goodwill (reputation) & formula for success
4. Ongoing support (assistance, inspections & discipline)

The pro's to being an independent are:

1. Be your own boss
2. Come up with your own ideas & marketing strategies
3. Much more control over your life & business

There are a few other differences, the main ones being your chances of success are lower as an independent, & (in my opinion) your quality-of-life is higher as an independent. Also, big corporations and franchises are gobbling up most of the market share. Your best bet if you would like to start or buy a non-franchise; choose a business that the big corp.'s will likely never be interested in. Also, if you are successful as an independent business owner, you may decide one day to become a franchisor yourself.

The biggest key to success (as noted by some of the richest entrepreneurs in the world) is perseverance. Virtually all successful business owners have failed numerous times before finally succeeding. There is business acumen built from both. Competition in this era is ferocious, so if you feel you have a great idea/formula for success, just keep on pumping away at it (while ignoring the nervous/negative nellies around you).

Some do get extremely lucky, and their business does take off like a rocket right out of the gate. The vast majority (of successful businesses) however, do not. Many fizzle out, fizzle back in, sputter, or just outright don't take for many years before finally taking off. This can be the most challenging aspect of starting a new business from scratch. Knowing when to persevere for years, and when to pack it in and try something else.

Approx. 75% of the non-franchise "bricks & mortar" business startups will fail, but this means that 25% will succeed. If you keep trying, the odds are very good that eventually you will be one of them. The vast majority of people in this world are only comfortable with the idea of having a job and getting a paycheck. This is actually a good thing, as it means less competition for you, both for customers and for employees.

Perception is also incredibly important in business. There is a perception "hump" that must be crossed over. Once this is achieved, things really start to take off. Marketing is also hugely critical in any form of venture. The marketing landscape has been changing dramatically recently, with traditional methods on the decline as more & more people are focussed on their digital devices, but really, it's whatever works. The main thing is that you do it.

People generally only support businesses which are viewed or perceived as already being successful, and not before. (sounds a bit dark, but it's a fact). This means that it's extremely wise to "fake it till you make it". Three more excellent keys to success would be to 1. Get/stay extremely organized. 2. Replace rushing with time management (whenever possible), and 3. Do not be afraid to put in lots of hours, especially since owning a business is normally far more exciting than punching a clock.

My final nugget of personal opinion to share on this subject is this: There is far more to success in life than just monetary wealth (since we are obviously not taking a dime of it with us). Balance your business goals with the goal of extending your (and your loved one's) healthy lifespan. Prioritize setting up your life to have enough quality leisure time to enjoy life long before retirement. When we are younger, our bodies can take the punishment of the inevitable stresses involved in this. As we age (normally around the 50 mark), the body becomes less able to take the punishment. If we wait until 65 to start slowing down and prioritize enjoying life, it may be far too late. This is where the notion of "Freedom 55" came from.