In the traditional economy, when starting your own business investments in human resources and financial capital are critical to the success of a new venture. However, as demonstrated by the social network Facebook and many other tech startups, it is now possible for a group of relatively inexperienced people with limited amounts of staff and money to succeed on a large scale in the digital economy.
Starting your own business in the digital economy
If you are thinking about starting your own business, there is now a whole new world of possibility in the increasingly virtual or digital world. Things that were unimaginable in the traditional economy are all of a sudden possible. There is massive thirst for information, which can be provided in an instant and professional manner.
In the traditional economy, franchises were supposedly the best way for starting your own business.
A good franchise company has developed a method of doing business that works well and produces successful results. There is normally a recognised brand that is recognisable by potential customers, and training programs designed to bring you up to speed on the most successful methods to run the business. Fundamentally, the biggest reason for starting your own business with a franchise is that you avoid much of the risk of starting a new business. However, for a franchise that guarantees a return on investment requires a huge capital outlay.
For example, the franchise cost for a famous fast-food burger chain restaurant requires a minimum of $250,000 of non-borrowed personal resources to consider you for a franchise. In other words you need $250,000 cash on hand to just start the discussion. If you can get that far there is rent, staff, equipment and inventory. The total investment is over $1 million.
Other guaranteed franchises for starting your own business are expensive too. The investment for a famous pizza house restaurant chain starts from $295,000 and investment for a well known 24 hour convenience store starts from $30,000.
These may well be guaranteed business models, but the simple start up costs are often way out of reach for keen entrepreneurs who just do not have access to that amount of money.
However, the digital world of the internet makes the whole process of starting your own business much easier and much more accessible. You don't have to part with eye watering amounts of hard earned cash, because your costs to buy a digital franchise are much lower than buying a regular business.
Article Source: http://EzineArticles.com/7499624
