Recently we’ve had a couple of ‘would be’ first time entrepreneurs call to say they had decided that it was the time to keep their money in the bank, instead of buying the business they had been interested in. They explained they were unsure if it was the right time to invest in a business, and it was safer to hold onto their cash. The businesses they had considered all had solid consistent cash flow, so the decision boiled down to what was safer, cash in the bank or cash flow from a business venture?

How do you determine the safest path in life? When I graduated it seemed like a much safer bet to go to work for a corporation instead of the risky road of starting a business. Keep your nose to the grindstone, be loyal, and work your way up to a comfortable benefits package. This seemed like the correct path for many until the economy hiccupped as it always did it seemed, every several years.  People were laid off, and many saw company stock and pensions take a serious dive. Some were let go just shy of collecting full retirement, and at middle age, where was the next opportunity? When things in Corporate America turned sour, then it seemed that the friend who had a small AC business that was still churning out profits day after day, looked much safer. After all, who laid off the owner?  Granted it takes a special person to accept the challenges involved with starting a business from scratch, possibly from an idea written on a bar napkin, after the fifth Margarita, and then take that basic idea and build a thriving business. There could be a variety of pitfalls and risks. However, there are other ways of going about becoming a successful business owner, that does not require the painful birth, and rearing of a brand new idea. One method is to…well, buy an already successful business. A business that has been in business for 5 years has a 95 percent chance of continued success. In fact in this marketplace it’s tough to get business owners with nice cash flow to decide to sell. After all, where will these owners find continued cash flow after they sell? In the stock market? Maybe Real Estate will give you some cash flow. But will the upside appreciation be there? As much as continuing to grow an already profitable enterprise? Most believe they have a better chance of making it through this difficult economic time even though business may be stagnant, by doing what they’ve always done, which is counting on their own talents to go out and bring profits into their company and give themselves a paycheck.

Method two for bringing a business idea to the marketplace, and also significantly increase your chances of success, is to use a business system that has been proven to be reproducible many times over. Can you say McDonalds? There are many, many franchises to choose from in a wide variety of industries that provide effective training, plus turnkey systems and processes that take much of the uncertainty out of  becoming a first time entrepreneur. There are franchise opportunities for every interest and budget.

Many successful companies have incubated in the worst economic conditions. They grow up lean and mean which allows them to knock off business from their larger, fatter more unwieldy competitors. During tough economies small businesses have been able to take advantage of very attractive lease terms and a wealth of talent that would not be available to them during times of high employment. This talent pool can drive their marketing programs, and product development to new levels which can pay off big as the economy recovers.

So next time you think it’s safer to keep your money in the bank. Think again. There is a saying great. “the best time to plant a tree was 20 years ago, the next best time is today.” Now may be the best time to choose a business to build into solid security for yourself and your family.