If you are looking to opening a business.  This entry, I will share on the opening an networking business may be a better financial decision for you than opening a Brick and Mortar business or even a skill-based business.

Traditional Business Models

First of all, thank goodness we are a nation of entrepreneurs!   I truly believe that our economy can shift by supporting small businesses.  Traditionally, businesses are broken into three categories:   
  • You are providing a service, 
  • manufacturing a product or selling products.

We often open a business because we are good at something and want to market it.  Maybe that’s a skill such as landscaping, cooking, health care, or consulting, (the list is unending), and you decide to go it on your own.  Maybe you see a niche that needs filled through manufacturing or sales.

The costs of doing business in a Traditional Business Model

In traditional business models, you have start-up costs:  you need a location, equipment, advertisement, supplies, product, staff (or service providers), working capital, and enough finances to hold you over until you make a profit.  Sounds scary, doesn’t it?

The costs of doing business in a Networking Business Model

Now, think about investing in a networking business such a GLAM.  You initial costs aren’t in the thousands, (or hundreds of thousands), they are in the hundreds.  You don’t have to quit your day job until you want to.  Your start-up costs should be little more than your computer, internet expenses, cell phone, business cards, and a budget for gas.  Most require a minimum monthly commitment, so you are a product of the product, of around a hundred dollars.  

Some require you to carry inventory.  It is important to review these plans carefully and understand you potential for profit.  Many have a great track record; others should be entered into with caution.  Perhaps you will rent an occasional meeting location (but in GLAM we don’t need this anymore, how lucky we are). Marketing expenses are minimized because the company has paid for the design and production.  You pay only for what you use.

Earning Potential for both Business Models
Earning Potential for Service-based Business Models

Let’s look a little deeper at one sector, the service industries.   With a few exceptions, once you have paid for your education, then started your business, in almost every case, your earning potential is capped by the amount of people you can see, your level of expertise and your immediate market.  Even if you are basing you business model on the work of other, such as a contractor or a spa owner, you are limited by the work your employees can perform in a day.   Maybe you are a chef who opens a restaurant.  How long will it take for you to recoup your initial investment?  How can the economy affect your business?

Earning Potential for  the Networking Business Model

Here’s the real differentiator:  
Your income isn’t limited to your own efforts or your ability to pay employees, the local economy, or even the national economy when you are in an networking business.  Your income is limited to your company’s compensation plans, your ability to promote the product(s) and to duplicate your efforts through teaching other distributors to do the same. If you choose a good company, you will receive great coaching and training materials to help you succeed.  Like compound interest, your efforts become multiplied exponentially.

Already have a business?
Some companies fit in very well with your existing business.  Some allow you to offer their products within your business off the shelf as long as you follow their guidelines.   If handled appropriately, it can be a great way to introduce the products and the business opportunity to others.

The Bottom Line…
The bottom line, if you have that entrepreneurial bug, consider an networking business.   Do a ground check a few before deciding.  Use this handy checklist when comparing companies.  Talk with several people who are or have been in the companies.  Of course, you can always ask me.  You’re welcome to ask a lot of questions.  

Then, treat it like the business it is, not a hobby.  Soon, you will have additional income, great tax write-offs, and potentially much more money than you can ever make in a traditional business.

Remember, you can always count on me.


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