The most frequent question I hear from people who want to start their own business is "what type of business should I start?" This is a fair question, and it has many possible answers. I want to point out the differences between the two before getting into the answer.
The two kinds of businesses are franchise and direct sales.
The most common question I hear from these new entrepreneurs is what kind of business they should start? Many are looking to get into a franchise type business. Here is a quick description of franchises and a comparison of the two.
A freelancer is someone who offers their time as an employee to private or public entities for projects. In this situation, the person has full control of their time and efforts. This is one of the most common types of freelance work. The most common is graphic designer.
In a hiring situation, the owner of the company hires other people (consultants) to work on their projects. Consultants have full control over their time and efforts. They can make their own schedules and may also be given work on a fee-for-service basis.
The first difference is ownership. In a franchise, the owner of the company owns the company and all the profits from the business. The amount of ownership varies from deal to deal. In a joint venture, the parties share the profits. In a direct sales situation, the person has control of their own time and efforts and pays for their own work. The most common type of direct sales situation.
The second difference is payment. In a franchise situation, the freelancer usually gets paid a fixed salary while in a direct sales situation, the person gets paid a percentage of sales. The most common type of franchise situation.
The third difference is control. In a franchise situation, the freelancer has no control over their own time. In a direct sales situation, the person has control over their own time. They can make their own schedules and decisions. They can also have the company make their schedules. The most common type of direct sales situation.
Now that we have described the two most common types of freelance work, it's time to discuss some pros and cons of each situation.
As a freelancer, I'm all about control. I want control over my own time and efforts. I like knowing that I have the 100% right to make my own decisions. That means I like direct sales and franchises because I get to work on my own terms. I like that I don't have to chase down callers and can choose my own days.
Now I know that I can work on my own terms. I can choose the days I work, the hours I work and where I work. And that's great for me.
Consuming so much time working for someone else isn't so great for me though. It eats up precious time that I would otherwise be able to spend with my family and on personal development activities.
When you're a freelancer, you have to put all of your energy into making your business a success and you can't spend time taking care of personal needs.
To be a successful freelance, you have to be disciplined and commit to doing your work the way it needs to be done. That's tough to do because you want to run your business without worrying about business. You want to run your business at peak performance and don't want to take any time to plan ahead to avoid being burned out.
That's a tough balance to achieve but the rewards are worth it.
Think about your own business. How would you like it to be? How much time would you like to dedicate to it? What do you want it to look like? Do you want it to be a small business that you run from your home or do you want it to be a large business that requires office space and staffing?
Write down your answers. Now look at your answers and think about what you'd like your business to look like. Your answers will guide you to having a business that is both professional and businesslike.
Business is all about image, image, image!