In the current economic climate where jobs are being eliminated by the 100’s of 1000’s much is being said about forced entrepreneurship. Displaced executives are finding the job market to be more impenetrable than in previous down turns and are turning to entrepreneurship in droves, realizing that their dormant dreams of self-sufficiency are now being reawakened out of necessity. So, the hunt is on for a business model.
The question faced by many prospective business owners is: Should I go it on my own or invest in a proven business model, such as a franchise? With literally thousands of franchises business models available in a variety of sectors from business services to furniture restoration, there certainly isn’t a shortage of models to choose from. Many former executives are naturally looking closely at industries they’re familiar with and business models within those industries. In some cases, while exploring franchises in those industries, they’ll then begin wondering if they can just start a business on their own. This can be a fatal assumption according to Michael Gerber, New York Times best-selling author of a series of small business success books called the E-Myth. The premise of the E-Myth theory is that most small businesses are started by first-time entrepreneurs. And, as in everything in life, mistakes will be made. Most entrepreneurs need to wear many hats and they aren’t necessarily good at all. The question remains “how costly will the mistakes be.”
How will you pay the price? Whether you invest in a turnkey franchise model or start from scratch and build a business, you will pay the price somehow whether in mistakes or in training fees. Everyone will pay a price to start their own business.