The business idea: The basis of any company
To set up your business, you don’t necessarily have to wait until you have a completely new idea. Most entrepreneurs start with products or services they are familiar with.
Popular opinion dictates that only people who have an ingenious idea become self-employed. But the reality is different. Only a small majority of businesses are based on a truly new idea or invention.
The vast majority of entrepreneurs try their hand at business in a sector which is familiar to them. The explanation for this is simple: someone who has worked successfully for several years in a particular sector, is aware of the requirements and problems of the market in question. Anyone paying attention also knows that contact with clients represents a significant source of information in terms of improvement, product innovation and niche marketing.
Added to this is the fact that those who know a particular sector already have an adapted network and personally know potential clients and suppliers. In the best-case scenario, they are also surrounded by colleagues and qualified and ambitious staff who can help them structure their business.
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Changing a business idea which has been successful
Many existing concepts can be changed to produce a promising business model.
Franchising: Semi-independence
Another option for taking control, without creating your own business, is “dependent independence” or franchising.
Agents: Vital intermediaries
Agents are self-employed entrepreneurs. They act as intermediaries or conclude sales on their customer’s behalf.
License: Taking out a license on a patent or trademark
Taking out a license works in a way similar to franchising or exclusive representation. However, the licensee does not buy goods but intangible assets such as patents or private labels.
Multi-level marketing: The risks
Multi-level marketing, also known as pyramid selling, is a controversial form of business. The disadvantages of this system can be considerable compared to direct selling.
Exclusive representation: The characteristics
Exclusive representation allows an entrepreneur to acquire the exclusive right to sell goods. Here is how it works.
Buying a business instead of setting one up
Setting up your own business is not the only way to become self-employed. You can also buy a business.