In my previous article we made the case that you are never too old to start your own business, and creating your own job is the best way to build a secure retirement income.
In this article we will cover your choices of businesses to start, and help you decide the best choice for you and your family. We will break down businesses in two major categories; Offline or Online.
We will start with Offline
If you choose the traditional offline business, you will need to consider your startup costs. They can be substantial.
Lets say you want to open a clothing store. You will need to find a high traffic location and sign a lease. Of course, you have to remodel the store. Then there's the business license, arrange for utilities, then start advertising, and finally the grand opening.
Now the real costs begin! What are you going to sell? What are the inventory costs? Keep in mind the variety of styles and sizes you will need to compete with Wal-Mart, K Mart and Target. Can you match their prices? To make things worse, are the state and federal reports and taxes you have to manage.
Its my considered opinion, after 45 years in business, this is probably the worst choice in todays economic climate.
Offline Services, is going to be easier than a retail business. You can set up a service business in your home. Lets say that you are an air conditioner repairman with experience, and your own tools. You decide to go independent and start your own business.
The problem will be that your income stops from your job, and you have to build your own customer base. That means you must have the funds saved to advertise and to live on. From my experience you should have enough to live on for a minimum of 6 months. It will take you at least a year, and maybe even 2 years to get into a profit. Another option is Franchising. When you buy a franchise, you buy a System and instant credibility. You also will get group advertising, specialty equipment and marketing tools.
The problem, however, is that you are sill starting from scratch, with no customers, with immediate costs of franchise fees. When I bought my Duraclean Carpet and Furniture cleaning franchise way back in 1965, the costs of a franchise was $7,000. Today it is $25,000. My franchise fees began after 2 weeks, and had to be paid even when I didn't have any business.
My conclusion is that either franchising, or going independent, is not very practical. Either option will be very difficult, if you are trying to build a residual retirement income. This series of articles is to help anyone planning to retire soon, such as baby boomers, or those retired, but forced to look for more income.
You need a business that will provide a secure residual retirement income, so lets take a look at Online Marketing.
Online businesses will involve either physical products or information products. There are three main ways to market online; MLM, Affiliate marketing, or your own product on your own website.
In the next, or third article, we will explore all three options. What we will be looking for are three things:
1. The fastest way to reach your goal.
2. The least expensive way to get there.
3. The simplicity of building this business.
Be sure to look for the next article, and I will help you decide which choice will be best for you and your family. These articles are posted on Ezine Articles, and on my blog. http://jerrygarner.blogspot.com/
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