Transition From Corporate to Your Dream Business – Choosing Your Business Model

As you begin to plan your dream business, it is important to decide how you will organize your resources for success? Your business model defines how you will organize your resources and make money. Choosing a business model impacts who is in your business, where and how it is run and how you will make money.

With your business strategy in mind, here are a few questions to ask when determining a business model that will provide the foundation for your dream business:

* How many hours will you work at your new business?

You will want to determine if you will have a part-time or full-time business model. A part-time business model can be used as a transition step as your first start towards your new business.

* How will you make money?

For example, when I first started my business 100{da74ea48cec7d1c659e4125ffe517180d7bd6cbbe5631d32f11d21c45900f39b} of my income was active income, meaning that all of my income depended on the number of hours I worked with clients. If I wasn’t consulting or coaching clients, I wasn’t making money. Get creative and brainstorm revunue streams outside of active income. My business model now includes leveraged revenue streams that support my business. This decision was based on my strategy to leverage time. Being a busy Mom, I choose to leverage time by running groups and classes.

* How about the location?

Determine if your business can be home-based or if you need a physical location (brick and mortar). Over half of all U.S. businesses are based out of an owner’s home. Starting a home based business offers opportunities and challenges. Thoroughly research this business model to determine if it fits with your lifestyle and talk with home based business owners for a real-life perspective.

* Will you sell your product or service through an ecommerce site?

There are several ecommerce business models that each have their own unique characteristics. This is generally a lower cost business to start but you will have to consider the cost of technology and the management of inventory, shipping and payment processing. Let’s say that you have a product you can offer via the Internet that would serve over 1,000,000 people. The challenge that you must answer is how will you drive customers to your site, convert that customer into a sale and manage that sale.

* Is a franchise or multi-level marketing (MLM) opportunity right for you?

Every franchise and MLM has different success rates. Research the businesses track record, cost and any additional operating costs. Franchise Business Review (http://www.franchisebusinessreview.com/ [out]) is a market research company in the franchise industry. Reviewing independent reports and conducting your own research will enable you to get the feedback required to make an informed investment decision.

Answer the above questions and start your research on business models that are a match for your strategy, interests, and financial goals. Once you’ve completed your research you may choose a hybrid model that is a mixture of several structures that can work for you. By taking the time and doing this research you are positioned to choose the right business operating model that will help you organize your dream business.