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Many people fail to realise that it is actually possible to invest in themselves.  When you put money into the sharemarket, you are suggesting that you believe that the people who run that business will ultimately generate a profit, and that you would like to receive a share of that profit.  If you are the sort of person who is willing to do some hard work, then you might be better off investing in your own business.

Starting a business can be complicated, but it needn’t be.  Many young entrepreneurs start out by offering to wash cars, clean windows or complete odd jobs in return for a small fee.  These businesses require very little in terms of start up capital, and as such anyone can own one.  On the other hand, the business is entirely dependent on the owner; income will only be generated when the owner is there to complete a task.  This means that the income is certainly not passive; constant work is required.

The next step can be to establish an internet based business.  Once again, the start up costs are relatively minor.  Internet based businesses do not need to pay fit out costs, they do not need to maintain high stock levels, and they do not need to pay ongoing rent.  However, when you operate an internet based business, you need to find some way of ensuring that people will visit your site.  Many businesses of this type use eBay to generate an interest, and then try to make further sales through their own site.  

Service based sites, like the one you are reading right now, are also possible.  These sites tend to target specific niche markets.  For example, this site caters specifically to students studying VCE commerce based subjects. This allows for a high degree of specialisation, but it does mean that your market is unlikely to expand.

The next step is to try an open a retail outlet.  This could be by purchasing the right to operate a franchise (such as McDonalds), or by starting an independent business.  A franchise will have an existing name, and therefore customers will already know the brand.  It also means that funds can be pooled for a more effective marketing campaign.  On the other hand, franchise owners can not make many independent decisions.  For example, owners of a McDonalds franchise must use certain colours, and they must offer certain menu items at particular prices.

Owning your own business can mean spending a lot of time and money developing a customer base, and therefore it is very risky.  But an independent business owner will always know that they are responsible for their own success.  Instead of sending their money off in the hope that someone else will be able to achieve a profit, owning your own business allows you to regulate the return based on how hard you are willing to work.

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