Business Model Options for First Time Business Owners

Choosing a business model can be hard for someone who is new to the scene with money to invest. Lots of ideas might sound great on paper, but it is important to find a business model that resonates with one’s interests, ideas, and values. Different businesses may require a significant amount of work, such as with personalized crafting businesses. Others, such as franchised companies, are fairly automated.

Cyber Store Fronts

For businesses that do not require a physical store front, an online store is a wonderful idea. Customers can order items at their convenience, and the owner can ship items and plan to perform services after payment’s received. There are no worries when it comes to finding and buying or leasing a property; many overhead costs are avoided. However, a successful store may require storage space for excess inventory as the store grows.

Mobile Physical Businesses

Mobile physical businesses, such as booths at fairs, farmer’s markets, local events, and crafting shows, are perfect for the part time business owner. Attendance and sales are based upon the owner’s schedule. Minimal overhead is involved, with most overhead costs including reusable items such as tables, tents, displays, and trailers for hauling the mobile set up and merchandise. Afterwards, travel expenses and vendor fees are the main overhead costs.

Franchised Stores & Businesses

For someone who wants to invest money but is not interested in trying to build and maintain a brand name, training program, or successful operating practices, restaurant franchise opportunities are a great route. This can be a relatively hands off investment once the store is up and running. Employees are expected to keep the business running smoothly. The franchisee is still the business owner however, and will still have some responsibilities and work within the business; but it is not as intensive as a traditional independent business.

Consignment & Handmade Stores

Consignment stores are very successful especially when located in thriving towns. Bargain hunting is “in” right now, and many people are in search of a place to sell their used items. Consignment stores involve a bit of legwork with tagging and pricing inventory, maintaining an organized store, and dispersing funds to the owners of consigned items. Selling locally produced handmade items is a bit easier, as it is a normal inventory based store where unique items are simply purchased from local artisans.

Choosing an ideal business model isn’t always easy. Choices will depend on how much work one is willing to put in, how often the individual can manage the business, and the type of items or services that are intended to be sold.

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