Every year, thousands of people strike out on their own to launch new businesses. However, without thorough research, a business plan, and the right financing, becoming a successfully independent entrepreneur can be an uphill battle.
Why Choose Entrepreneurship
There are a number of reasons why people choose to embrace entrepreneurship. The most common reason is that people want to be in control of their financial future. If the recession of 2007 taught us anything, it’s that even jobs with the largest companies are not secure. At any given moment, people can find themselves downsized. You cannot rely on your employer for lifetime employment and security, but you can greatly improve those odds by going into business for yourself. The other reason is that people often feel limited by their jobs. Either their pay rates are too low, their responsibilities are too high, and waiting for a promotion that adequately compensates you for the work you do can take forever. The third reason, which is becoming more apparent each year, is that people want to launch businesses that incorporate their passions to provide products and services that truly benefit people and communities in a meaningful way.
Which Industry Should You Choose?
There is no right answer to this question. An industry that’s hot today could be forgotten tomorrow, or become so saturated that there’s little profit margin. Try choosing a business that aligns with your skill set and interests. If you see a gap in a particular industry or customers who desire something that isn’t being provided, try to fill that gap – but do research ahead of time to see if the need is sustainable, financially speaking.
Are Franchises Examples of Entrepreneurship?
Absolutely! Many people have built small empires by launching franchises and growing their operations to achieve financial independence. The great thing about franchises is that there is already a built-in infrastructure to handle everything from training to management, marketing, and more. Additionally, franchises have really diversified over the years, so people can buy into a franchise that fits their interests. Franchises can span everything from home office operations to brick and mortar establishments to large hotels and more.
Launching your own business takes some work. You will need to do research to create a detailed business plan. Your business plan should cover everything from financial projections to reports on your direct competition, how long it will take to start generating a positive revenue, and much more. You will also need a sound financial strategy to cover initial and ongoing expenses. SBA loans and other programs help people embrace entrepreneurship. It should be noted that getting financing through traditional lending institutions can be a challenge, because banks view new businesses as “high risk” ventures. However, there are organizations that specifically work with emerging entrepreneurs to ensure success every step of the way.
At Nanaki Capital, we offer a wide range of solutions to help people launch their dream businesses and embrace entrepreneurship. If you are thinking about making the big step toward business ownership, talk to the experts at Nanaki Capital today.