Starting A Business

STARTING A BUSINESS

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So, you want to start your own business. GOOD ON YOU for taking the world into your own hands and deciding it’s time to start making a life and not just a living! Starting a business.

Have you done your research? Do you know how much it costs to start a brick and mortar business?

Starting A Traditional Business

We have owned traditional businesses. Some did quite well and we left happy little campers. BUT we have also had business disasters where we lost a home, a car and every bit of savings we had stashed trying to keep it afloat. So, before you start a business here are a few factors to consider.

Start Up Ain’t Cheap

The average cost of starting a business is $30 000.00. That’s just to start!

Location, location, location…

A great business idea is only part of what makes a successful business. It’s the location that could make or break your success. How much foot traffic and what other businesses are within your locale greatly determines what direction your success can take. Higher foot traffic=higher sales=higher cost per sq. ft for rent. So, if your location is near a grocery store or a higher end brand store like Starbucks, you can usually expect to pay more. Don’t forget the cost of building maintenance, parking, common area keeping etc. can add up very quickly, so be aware of additional costs when considering entering into an agreement. (Don’t forget property taxes, utilities, property insurance and penalties associated if you break your lease. Sometimes that can enter into the thousands.)

Cushman & Wakefield released its 2015/2016 ‘Main Streets Across The World‘ study. Yes, these cover the high end streets of the world, but it gives you an idea of the costs some companies will endure for prime retail locations in North America.

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So, whether you are a global tycoon or a mom ‘n pop shop the costs for retail space on a lesser known street all the way up to the hotshot spots can be anywhere from $7/sq ft to $3500/sq ft. The equation for how much it would cost to rent retail space is

[Total Square Feet x Price per Sq Ft. ÷ 12 (months) = Monthly Rent] So, if you are renting a 2000 sq foot space at $10 per sq ft/12 months you will be paying $1600 per month on rent (plus other costs you need to negotiate ie. common area, taxes etc) and you still need to pay for utilities.

WAIT!! I HAVEN’T ORDERED STOCK YET NOT HAVE I HIRED ANY EMPLOYEES!

No, I’m not trying to be a Debbie Downer…but remember the world doesn’t give you an instruction manual on how to make a business successful and the risk can be life changing.debbie

 

You Could Start a Franchise

Franchises are businesses already thought out for you. The company has an effective plan in place to get you on your way to business ownership and even have pre approved suppliers, designs and even uniforms all ready in a neat and tidy little package.

Let’s take a look at the costs involved in 2 common franchises:

Tim Hortons

Franchise Cost:
-$480,000 to $510,000* plus all applicable taxes (this includes a drive-thru)
-Additional Working Capital:
(start-up costs) $50,000 (cash)
-At least $153,000 of the franchise cost must be unencumbered (cash or liquid assets) in
addition to the $50,000 working capital that must also be unencumbered. (so now that’s $203, 000 cash), but you’re allowed to borrow the rest.
*Not included in the cost of the franchise: the building and the land the building is on.
-Agreement is for 10 years with the option to renew for another 10 years after.
Ongoing payments, plus applicable tax:
-A weekly royalty fee of 4.5% of gross sales for the term of the license
-A monthly rental that is the greater of a fixed minimum rent or 8.5% of monthly
gross sales
-A monthly advertising levy of 4% of gross sales for the term of the license
McDonalds
Franchise Cost:

-An initial down payment is required when you purchase a new restaurant (40% of the total cost) or an existing restaurant (25% of the total cost). It must come from non-borrowed, unencumbered personal resources (which include cash on hand; securities, bonds, and debentures; vested profit sharing (net of taxes); and business or real estate equity, exclusive of your personal residence.)

-Because the cost varies from restaurant to restaurant the total cost can vary for down payment. Generally,  a minimum of $800,000 of non-borrowed (unencumbered) personal resources to consider you for a franchise.

Ongoing fees:

Service fee: a monthly fee based upon the restaurant’s sales performance (currently a service fee of 4.0% of monthly gross sales).
Rent: a monthly base rent and/or percentage rent that is a percentage of monthly gross sales.

YIKES!! And there are time commitments, how many hours a week you as an owner are required to work and you have to apply to qualify for a location.

So where does that leave the average person wanting to start a business, but doesn’t have the equity, backing, or resources to start a traditional location?

NETWORK/RELATIONSHIP/DIRECT SALES MARKETING

Climbing very quickly on the popularity ladder, direct sales has been seen as the perfect way to add additional income while working spare time, part time or full time. Are you looking to pay-off a few bills faster, buy a few extra groceries each week or looking for something you can build into a full time career?

What’s Really Great About Network Marketing

Starting A Business For a Fraction Of The Cost

  • Unlike starting a traditional business, you can start a home based direct sales business for very little money.
  • Makes it easier for anyone to start their own business
  • Means initial investment can be recouped faster

YOU Decide When You Work

  • Take a sick day when you are sick, take a holiday whenever you chose, volunteer at your kid’s school. It’s all up to you how often you want to work.
  • Whether it’s spare time, part time or full time, the choice is totally up to you because YOU ARE IN CONTROL OF YOUR BUSINESS.

Take Your Business On The Road

  • Thinking about going on a holiday, you can take your business with you if you choose. Visiting family and friends father away, you can share your business adventure with them. Feel like sitting in your tub all afternoon, Hey! You can do your business from your bathroom. It’s your business, and with the wonderful advancements in technology, you can literally take your business with you any where you go. Business hours on your terms.

The Power Of The Internet

  • Unlike a store front business, you can wrap your arms around the globe with your direct sales business. You aren’t limited to your town or city, you can literally do business in other parts of the world from the comfort of your own home.

YOU NOW HAVE THE POWER TO CHOSE YOUR FUTURE!!!

This is your business and you can build it as your chose on your time and your terms and that gives you THE POWER OF CHOICE!! That, my friends is the power to give yourself permission to build the life you are destined to live.

Tony and I are always looking to work eager entrepreneurs who are wanting to build the future they deserve, and Nerium has been the vehicle that has given us the choice of where that future will lead. So, if you’re looking for a really great company, want to work with a really great team who believes in YOU, and want the mentor ship you deserve click here .

If you want to chat to see how Nerium has changed our lives, find us here .

Dream Big my friend!

Love Vanessa and Tony

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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