I lay awake at night and the ideas just flow through my head. I often get overwhelmed by the possibilities. Because let’s face it – the possibilities ARE endless.
If you put your mind to it you can successfully start and run your own business. However, there are pros and cons with each different type. And I believe it’s crucial to weigh these before going all in.
Let’s take a look.
A Freelance Business
As a freelancer you are simply offering a set of services to potential clients. The services you offer can be virtually anything.
(If you need some ideas check out this post.)
The Pros: The biggest pro of freelancing is by far the flexibility that it offers. You can set your own hours and work when you want just as long as you meet your deadlines.
As you grow you’ll have the ability to be picky and choose the clients you really love to work with.
The Cons: One of the biggest cons of having a freelance business is not being able to scale. You get paid for the hours you work. If you want to earn more money you need to either raise your rates or work more hours. Neither is an easy option.
Another con of being a freelancer is paying high taxes and not receiving any benefits. This will be a common theme for the self-employed person.
A Retail Store
The majority of my family members own some type of retail establishment. Having grown up in this atmosphere I decided it wasn’t a route I wanted to go down.
The Pros: The pros of owning a retail store is being able to sell products made by someone else. You don’t have to worry about coming up with new ideas like a freelancer does.
Also, retail establishments are scalable. As your sales grow you can hire a staff to do most of the work for you. You’ll definitely still have to make those executive decisions but your business can run without you being present.
The Cons: With the popularity of online shopping many retail establishments are feeling a pinch. Combine this with a down economy and you have some serious problems.
Another huge con is getting started. Startup costs for a retail establishment can run into the hundreds of thousands of dollars. And on top of that you’ll have to put in some serious marketing time to get customers.
An Information Business
In the last several years information businesses have been booming.
An information business can be a book, a blog, or a course – anything where you sell information to another person.
The Pros: The pros of an information business is the extremely low startup costs. Your main investment will be your time creating your information product and getting your name out there.
And if you design a course or book you can resell your product over and over, making this is a source of semi-passive income.
The Cons: There are literally millions of blogs on the internet. Information is everywhere.
Your biggest challenge with an information business will be setting yourself apart from the competition. You’ll have to spend hundreds of hours marketing your product. And even then you might fail.
What Kind of Business Do You Want to Start?
There are thousands of different types of businesses you can start in these three categories alone.
It’s important though, that before you jump in and invest your time and money into a project that you have realistic expectations. It can take years to really get your business off the ground.
What kind of business would you like to start?