The Community or Generic Business usually has more employees than a lifestyle business. This type of business usually involves the renting or buying of physical offices or physical space, equipment, etc. A Community or Generic Business would be most local retail stores, restaurants, hotels, professional practices, local or regional focused manufacturers, wholesalers, distributors, builders or service type companies. These businesses eventually generate income without the founders or owners being involved 100% of their time. Over time the business develops value through its processes, local branding, proven income and profit and can be sold or passed on to family members. Energetic lifestyle business owners such as trades-people (electricians, carpenters, plumbers), professionals (accountants, lawyers, trainers, consultants) who decide to develop a larger business with more key people, processes and products earning revenue will often graduate to a Community or Generic Business. Local franchisees to regional, national and international franchise organisations would also fall into the Community or Generic Business category.

Advantages:

•    Adding of efficient staff such as a manager, controller, production manager, sales manager, allows you to also pursue other interests, hob¬bies and other investments. It frees up time for you.
•    With the right people and processes in place along with a history of financial success the business could be sold it you want to exit. You are building an asset.
•    You can eventually become an established name resulting in a certain amount of business coming in without pro-actively going after it.
•    You can be a “big player” in a small pond.
•    You can become well known within the com-munity or industry and become part of the key social and business circles, resulting in social and business status for you and your family.
•    Banking needs become easier to access over time.
•    You accumulate hard assets over time in the form of property, equipment and cash.
•    You earn above average income.
•    Other people, products and processes earn income for you. You don’t have to do it all by yourself.
•    You have a team of people to give you input and act as a “sounding board” and become “contributors” to finding opportunities and solv-ing problems.

Disadvantages:

•    A lack of ability or “know how” to put in good business processes and hire, train and develop good people could result in a poorly run business.
•    Believing your business is worth more than it is and the challenge of getting what you think the business is worth when you decide to exit. You may not be able to exit effectively.
•    Because you are established, apathy can set in, and you may not stay on top of changing cus¬tomer needs and what the competition are doing and end up in financial difficulties that may not be reversible.
•    You can get bored with going to the same place each day dealing with the same people.
•    The “fish bowl” effect! Living and working within one community you are watched closely and can easily become part of a negative rumour mill. You and your family can get tired of living up to an image.
•    A substantial investment may be required to start, buy or keep the business going. The debt load could be quite big and put you at risk.
•    The quality of your service, products and pro-cesses is in the hands of other people. They could fall short of your expectations as well as the customers and negatively effect your name.
•    There is always the risk of other people in your business making a mistake or intentionally hurt¬ing your financial position.

Due to the difficulty of bank based loans and the need for capital, cashflow, and investment you would likely go to friends and family for loans. We recommend you use www.kasu.ca in Canada.

There are three types of business ownership positions:

1.    The Lifestyle Business
2.    The Community or Generic Business
3.    The High Growth Business

For more information on how this can help you define your business opportunities and help you succeed in business contact billgibson@kbitraining.com

This blog has been prepared by Ryan Anthony Gibson and the source is Bill Gibson’s Business Success Series by http://www.kbitraining.com