Wherever you go in the world, it seems as if everybody dreams of owning their very-own business . Those that have sufficient financial resources dream of starting traditional businesses ; while those with limited ones aim more at running less expensive home businesses . Not everyone will eventually indulge in either but this article will attempt to define the broader lines of both so you could get started on the one that best suits you.
a- Traditional Business :
A traditional business is an organizational entity which is often thought of as a store, restaurant or agency and is designed to provide consumer goods or services. Traditional businesses are all about huge transactions in order to pay off bills, salaries and also get owners’ worth in investment. Some of the major traditional businesses around are Wal-mart, Microsoft and McDonald’s.
As an owner, traditional businesses may be very profitable; however, it is important to note that about 60% fail early on in the process due to the high fees involved in running and marketing the business brand.
A French word meaning frankness and honesty, the concept of franchising rewrote the definition of traditional business . Dating back to the early 1850s, the practice eventually came into worldwide prominence in the early nineties with the growing fast food business . Starting in the U.S. and spreading to the rest of the world, franchise businesses , such as Mcdonald’s and Starbucks started booming and proved to be more secure and profitable than entirely new businesses . In return, the parent companies shared a pre-defined percentage of profit from the business franchises.
As an employee in a traditional business , the ride is slightly less enjoyable. Your time and salary are managed directly by a supervisor or the human resources department. It is commonly known that most salaries barely keep their beneficiaries safe for the month and they never give you that financial edge needed to relax. That is the reason why many unsatisfied employees in traditional businesses choose to leave that environment for the more liberal and comfortable settings of a home business .
To sum up, traditional businesses require a serious time commitment on behalf of the employee and bring in hefty investment for the owner when successful.
b- Home business :
As its name expresses, a home business is simply a business either started or run from the comfort of one’s home. Contrary to what you may think, some business titans like Microsoft, Google, Apple and Xerox actually started off as home businesses in garages and basements.
Although innovative and profitable business ideas are hard to find, home businesses are much better solutions for financial and temporal freedom. They provide owners with huge tax benefits, no commute fees and reduce high overheads. Time-wise, this type of business allows its owner (employee) to benefit from a flexible time-table and schedule meetings around his free time.
The internet has also proved to be a crucial factor in home business development as it provides a platform for competition in the business world. Up until the mid 90s, this type of David and Goliath confrontation between a small business and a huge enterprise was practically unheard of. Nowadays, many home businesses actually appear higher in search engine rankings and have higher Google rankings than lots of highly profitable companies.
Not only that, but E-businesses have drastically changed the relationship between providers and customers. The internet has facilitated the sending and reception of products and payments on both ends. In five minutes, I purchased software on the net that I paid for with my credit card and obtained an email with a download link and a password. The irony is a couple of days later, I spoke to the owner of the company and found out that he developed and sold his product from home.
Business interactions are far simpler due to ever-developing technological advancements. This improves productivity, customer satisfaction and company profit. It is for this very reason that most home businesses are actually online businesses .
Generating a revenue of more than $100 billion dollars annually in the U.S. alone, mushrooming home businesses have started posing quite a threat to many large scale businesses , running away with huge deals. In fact, many huge businesses prefer to partner with home business providers to complement some of their services, like delivery and product distribution.
Whether you opt for a traditional business or a home business , be sure to research your targeted market and customers, create a solid business plan, be innovative and implement. If you abide by your business instinct and develop with your market, you are destined to cash in big.