What business model should I choose?
Businesses, just like us mamas come in all forms and shapes.
Now that you have identified the desire to be your own boss and start a business, it's time to decide what type of business you are going for.
This can feel a bit overwhelming, especially if you are not super clear yet on your idea or what exactly you want to offer. Being the creative, multi-passionate, a-type kinda person that I am, I have gathered experience in a few different avenues and I am keen to share some pros and cons with you that will hopefully shine some light into the dark for ya.
The first and most obvious decision you need to make is service based vs product based.
Then we have things like online/e-commerce vs brick & mortar storefront.
Also, contracting, consulting, coaching, teaching, network marketing...
What I am about to share with you is simply from personal experience and preferences, you do you. Trust your gut and choose what feels right for you.
The best place to start might be to ask yourself what you don't want.
And can I see myself still doing this thing 5-10 years from now?
So let's look at some options here:
- Brick & Mortar Store. The first business I ever owned and managed was a surf boutique, we sold new and vintage goods to the cool folk. Fun times for sure!
Pro: It's super social, you get to chat with people all day long, I loooved the buying process and seeing all the products for the seasons to come. You get to deliver an amazing customer experience due to the in-person interaction and gather real-time feedback.
Con: Big overhead costs such as the lease, staff and stock. You might even need a warehouse or storage unit for extra stock! Location, location, location. This became a problem for me as I started to feel stuck and bound to that one spot. You have to stick to opening hours, you need staff members from day one and therefore also be a great boss and leader. The margins are pretty low unless you make your own products. Things will get stolen!
- E-commerce, still selling a product but without a physical storefront.
Pro: Less overheads, no opening hours and therefore more flexibility in time, can be location independent, you can utilize affiliate/influencer marketing, scalable.
Con: Depending on what you sell, you might still need a warehouse and or workshop. Shipping can be a pain, choose products(s) to sell that are lightweight and fairly low cost to produce!
- Service-based: After I had to say goodbye to the surf store due to major earthquakes, I decided that I don't want a business that depends on a location anymore! - understandable right? - After going through my own 'Secret Sauce' process I found my passion for coaching and supporting others, long story short I moved into selling my coaching services, online.
Pro: Very low overhead costs, no staff needed - just the odd contractor. You can work from anywhere with wifi, this is fantastic if you want to offer coaching, consulting, teaching, contracting or freelancing.
Con: Not many cons here! But it can get lonely, you might feel isolated if you don't socialize regularly.
- Network Marketing/MLM: Thankfully people are finally understanding the power of network marketing and there is a real upward trend happening right now, a perfect time to jump on board. The key here is that you choose a company and product you can stand behind a 100% and feel passionate about. When I first dabbled in MLM, I really liked the concept and could see great potential but went with a company I was not fully aligned with and as a result, found it hard. The company I am now partnered with feels amazing and like a natural extension of who I am, win!
Pro: It's a business in a box, very little overheads, no stock handling, no marketing campaigns needed, anyone can do it, residual income, basically all the heavy lifting is already taken care of plus the support and mentoring is usually fantastic (depending on the company you choose). This is a fantastic addition to your income streams but can also be your main gig.
Con: If you choose a product and company that is aligned with your values, then I can so NO Cons!
Wow, that was a mouthful, eh! The thing to keep in mind is that all of the above can work amazingly for the right person, plus one thing does not exclude the other! In fact, I am a big believer in having several income streams, not only to mix things up and have fun but also to not have all my eggs in one basket.
For me, this currently looks like this: I have Highvibemommy.co where I teach others to start their own business online + I have my incredible doTERRA team + I do some freelance design jobs on request + we have our tree house on Airbnb.
Have fun with this, if you are just getting started I suggest you start with one thing and do it well before adding more to your plate.