You would think that you need to start a business to survive the pandemic. After all, that’s what 85,000 people did last year. According to this Small Business post, that’s a record. You can see the appeal, especially when you’re locked down and job security isn’t particularly strong.
But, it might not be your cup of tea. You’re an entrepreneur who wants to make money, yet you can’t be bothered with the hassle of launching a brand new business. After all, it costs time, money, and energy, three things you should value.
Thankfully, there are other ways. Carry on reading to find out more.
Buy An Existing Business
Straight away, you’ll assume that this tactic is too expensive. Investing in a company is like buying a house, and the average house price for residential homes in the UK is over £250,000 according to the Gov website. Organisations are more profitable, meaning they will be more expensive. However, the upfront fees are outweighed by the resources you’ll save in the future. Without employees to hire, permits and licences to purchase, and equipment to invest in, the initial investment could be a bargain. This is especially true if the business is already lucrative.
Or A Franchise
A franchise is a cheaper option because it isn’t successful yet. You’ll have to do all the heavy lifting, so it’s like launching an SME in many ways. The one main difference is that you get access to a blueprint that you know is effective. After all, other people have used the plan and resources to their advantage, and you can do the same. There are hundreds of top franchise opportunities for sale, too. All you need to do is check out the likes of Franchise Direct for the listings. Again, the extra expense is often worth it considering what you’ll save in the long-term.
Invest In A Business
You can become a partner by investing the funds you have and acquiring a role in the firm. Typically, investors take a share and sit back and watch the stock price rise. This is the hands-off approach that wealthy people like to use to their benefit since they have zero responsibilities. Still, you can negotiate terms to ensure that you have a role within the company, such as the head of marketing or finance. Opt for something the owner doesn’t want to do. That way, you have more skin in the game than your initial stake.
This is a relatively new strategy that employers are using to hedge their bets. Essentially, they help employees launch a business and take equity to cover their losses. If the company succeeds, they’ll get a nice slice of the profits. Your current job might not allow for this, yet larger organisations have structures that let you open new business lines. People who don’t have the resources or contacts could benefit immensely from this type of agreement.
There are alternatives to starting a business. Which one do you prefer?