There Are Many Ways to Start A Business

By Ericka Foster and Maggie Allen

When you think of owning your own business, you may think of a restaurant or a store. At the other end of the spectrum, you might know someone selling stereos of the back of a truck (do they still do that?) But owning your own business can mean so many things. The beautiful thing about having your own business is that it can be as small or as big as you want it to be.

As with ANY self-employment endeavor, start by being passionate about the idea, because you will have to work HARD. Hopefully, your passion for the idea will balance out the hard work required.

Multilevel Marketing: Eyes Wide Open

Multilevel marketing (MLM) is also sometimes known as network marketing or direct selling. In these kinds of companies, people ask individuals they know to purchase a product. If the friend likes the product, then s/he can s also start selling it. You may not know the name of the type of company, but you’ve probably heard of them: Avon and Mary Kay. You’ve probably had a friend try to sell you a product as a part of a multi-level marketing company. Not all MLMs are bad news, but you should approach them with a healthy level of skepticism.

If you are thinking of selling products through an MLM, do your research. Check with the Federal Trade Commission, the Better Business Bureau, and your local consumer protection agency to find out if there are any complaints or lawsuits against the company.

The important things to remember are make sure it’s not a scam and be realistic about the amount of money that you can make.

Nonprofit

Don’t let the title fool you! You can earn money running a nonprofit. Your salary is part of the operational costs. You can live your live with the salary of a nonprofit, although it is not a way to be rich. A nonprofit is sometimes referred to as a 501(c) (3) most non-profits fall into that tax-exempt category. Visit the IRS web page and consult with a tax professional on the ins and outs of the non-profit tax status.

The best nonprofits run like businesses – so make a business plan.Your business plan will help you figure out what makes you stand out from other nonprofits, how you will finance your nonprofit, and how you expect your nonprofit to grow. Having a direction for your organization will help you predict the time and effort required to get it off the ground. You can find a business plan template online you can also find resources to help you write your business plan.

Franchising

When you open a franchise, you run the business, but you get a roadmap from the franchisor. It tends to be less risky because someone else owns the brand -- think McDonalds, Starbucks, or Marriott hotels.

According to the International Franchise Association, all types of companies franchise, including gyms, tax services, barber shops, cell phone repair, and janitorial services. Franchise 500 for more ideas.

As the franchisee, you pay a royalty and often an initial fee for the right to do business under the franchisor's name and system. In the most common kind of franchising, business format franchising, the franchisor provides to the franchisee not just its trade name, products and services, but an entire system for operating the business.

While there is no current federal or state law preventing a felon from owning a business or franchise, felons might face trouble licensing and bonding for a franchise, although depending on the circumstances of the crime, it is possible to speak to an attorney and secure what is called a Certificate of Relief from Disabilities. In this, a court requests that the licensing board consider you, regardless of any financial loss or low credit ratings that may have resulted from your time incarcerated.

At the very least, participate in any job-relevant education or training you can get your hands on. Check out if there are any courses offered at your local library or school system. Every little effort improves your chances.

If all else looks good, think about the investments required: scouting locations, time commitments, capital, training, etc. There will be numerous hurdles, but having an open conversation and establishing a good relationship with your franchisor is essential. So many opportunities could be waiting for you; you just need to listen for the knocks.