To buy or to build?
The next thing to consider is how you will go about acquiring or creating your new business. Will you set up a local franchise of a larger, established brand? Will you purchase an existing business and take over where the previous owners left off? Or will you start completely from scratch and build a business that is uniquely yours?
All three options have their merits and their drawbacks. Take a look at the following descriptions and see which one resonates best with you and your list of niches, business models, and location preferences.
Build your own business
Starting your business from scratch can be difficult and time consuming. You don’t really know what your target market is, or how many employees you’re going to need, you don’t even have an idea of whether the business is viable or not. On the other hand, there are a lot of benefits to starting your own business that you don’t get when you purchase a franchise or an existing business.
Advantages of starting your own business include:
- You have the freedom to make your own decisions and do things your way, no questions asked
- You can be as innovative and creative as you like
- Startup costs are much lower, and can be spread over time as necessary
- You get to develop your own unique blend of products and services
- You get to develop your own unique brand identity
- You will learn a lot about yourself, and grow immensely in the process
Disadvantages of starting your own business include:
- You need to establish everything yourself including creation of a business plan, business name, promotion and advertising
- Attracting customers may take more time since there are no established customers yet
- Months and even years of insufficient income and slow sales
- Financing can also be difficult since most lenders prefer to provide loans to already established businesses.
- Without an established, proven set of systems and procedures, new business owners are more likely to falter
Luckily, most of the disadvantages can be overcome by getting the right kind of help from the right people. Business coaches, mentors, marketing consultants, and a good accountant can lessen the impact and make the prospect of starting your own business from scratch a little less daunting.
Starting A Business 1-2-3
The premier step-by-step interactive training system
for starting your business with confidence and clarity