They say the only constant in life is change. Though most people try to resist it, there’s no way to avoid it. To think things will simply stay the same is naive. Just use technology as an example. Who can keep up? As someone who’s been in the corporate world for all of my adult life, I’d say some of the biggest changes people aren’t paying close enough attention to exist in the world of business.
I’ve worked in the hospitality industry for most of my adult life. I also spent several years in the finance and real estate markets. I’ve always been open to new concepts and ways of being effective in business. It’s evident that what might have worked 20, 30, or more years ago isn’t the best direction now. So, let’s explore the different types of businesses – corporate, franchise, sole proprietor and home based – and acknowledge their relevance.
Let’s begin with the big guys. Some large corporations like Coca Cola have flourished. While others like Blockbuster have closed due to being out positioned and made to be no longer relevant. Corporations like McDonalds have used the franchise model to grow even larger and faster. While Pizza Hut has continued to close down locations. What’s the difference? If the model is all that matters, wouldn’t they all be successful? The difference lies in how they’ve adapted to changing times and changing consumer demands.
As we all know, the global COVID pandemic has had a big impact in the corporate world Instead of everyone going into the office, more and more people are working remotely or from home. How have you been impacted? Were you furloughed during those times? Was your job discontinued perhaps? People are more scared and disillusioned than ever before. Have you heard of the recent “Great Resignation”? The corporate job that was once revered as the ultimate gig and highly regarded for its job security is not the same. It’s actually the riskier avenue to pursue because so many things are out of an employee’s control. Job security is a thing of the past.
The sole proprietor (or ‘mom and pop’) businesses are another model that we as Americans have always been proud of. We like to see the little guy succeed. Some of them are doing very well, embracing concepts like social
media the internet for attraction marketing. But so many others have been forced to close or have been gobbled up by larger companies. Why is that? Their ability and willingness to adapt to change would be the biggest reason. What might have worked before may not work now.
The small local business owner is also struggling to survive in most cases. The COVID shut down literally closed many mom and pop shops permanently. They simply couldn’t recover from months with no income. In addition, you can order anything and everything online and have it delivered to you these days. Fewer consumers desire to travel beyond their phones to purchase what they need or desire. Unless a small business owner has the capital to shift and serve the online world more effectively, they’re risking their survival.
Then you have the home based business that has become so popular recently. In this type, you minimize overhead and still have the benefits of the traditional business types I’ve mentioned. The key factor for a home based business is relevance and is their product consumable so people need to buy it again and again and again. If the answer is yes, they can grow. If it is no, they face a much greater struggle of constantly having to find new consumers. Home-based opportunities also need to consider the niche they fill. If the products they offer can be purchased at the local Target or Walmart, they’re traveling a harder road than if they can position themselves with a unique product and brand that has mass market appeal.
Obviously, each of all these types of businesses have their own pros and cons. But in each model, who is truly reaping the greatest rewards? In most corporate and franchise models, the top company executives get the biggest payout. Being an employee of these models pays you a set wage or salary. But do you get wealthy in this case? That’s rare unless you can climb that corporate ladder to the top. You’re ultimately trading your time for income in the corporate world and making those at the top rich. It actually resembles a pyramid, if you think about it.
In the mom and pop owned businesses, there’s heavy start up costs and capital investments to keep it going. The average Joe can’t just start his own business without securing loans and going into debt initially with the hope of making it work. Ultimately every check written is coming out of the
owner’s own bank account. The risk seems more significant, and the hope is that the rewards are greater. After all, you can be your own boss and control your time and income But can you really? You’ve got a lot on the line. If you’re not in the shop overseeing the employees or paying someone else to run your establishment, you’re likely losing money. The doors have to be open to even hope to be profitable and any time away generally equates to lost revenue. It’s a tough way to thrive and few develop wealth this way.
With the home based model, you can really get the best of both worlds. You have very little investment and virtually no risk. You control your schedule because you don’t have a boss telling you where to be or when. The profits are yours without the big investments, risks or ceilings that come with the other models. In essence, you can write your paycheck. The truth is, it makes more sense today than ever before to look at a home based business opportunity more seriously since the rewards truly outweigh the risks.
So what should you do, especially if you’re working in a more traditional business like me? Ultimately, multiple income streams of income make the most sense. If you work in the corporate realm, also start your own home based business to protect yourself from things like downsizing, furloughs, subcontracting and other factors out of your control. If you own your own traditional brick and mortar business, look for complimentary products or services in the home based realm that add to your bottom line and lesson your risk without needing major investment. When you diversify your income sources, you work smarter and position yourself to be better able to adapt to change. In essence, you’re taking control of your financial future instead of letting top corporate executives or the general public decide your fate.
I have partnered with a 52 year old company that markets a unique product with mass market appeal. The media is driving its relevance, and it’s something everyone will always need that will never be a fad or go out of style. It has a global reach and requires a $52 start up investment. It’s said the measure of intelligence is the ability to change. Want to learn more? Consider an additional or another way to secure your financial future? Let’s talk.
