Now it’s time to put the mental game into practice.

Before you start doing business, you must have a clear understanding on your business model. A business model is the methods you use to make money.

There are two basic business models: retailing/wholesaling products, and providing professional services

Out of those two come variations of the ways the business is operated and products and services are offered to the customers.

You’ve probably heard of several of them:

• Traditional brick-and-mortal shops and stores
• Franchise
• Online stores on the internet
• Mail or catalogues
• Direct selling and network marketing

All models have their own pluses and minuses. The currently most favorite ones are online and direct selling.

Why?

Low cost. Many entreprenerus are limited by capital and budgets, especially home based business owners. The internet and the direct selling model will allow them to start with far less money than the traditional one or franchise.

Less hassle. Home based business owners are usually sole proprietors or LLC sole members, which relatively require less paperwork than those of corporations. Please consult a qualified attorney or financial advisor for more information.

Unlimited growth potential. The internet presents unprecedented expansion of marketplace as more people turn to the web everyday for just about anything they need. Network marketing, on the other hand, use the power of leveraging other people’s resources to grow the business and increase sales volume.

Depending on how comfortable you are and how much experiences and resources you have, you can pick the most fit business model for you and begin your entrepreneurial adventure right away.

On the next post, I’ll show you what you need to properly launch your business.

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