Starting a business...what are my options?
You’ve been in Corporate America for years, learnt the ropes including when to stick your neck out do something…or not; but now you’ve decided or its been decided for you that there’s more to life than the whims of an employer and so it’s time for you to start your own business…now.
How exciting!!!
So you have some questions and one of the first has to be – what are my options?
If you’ve decided you want to start your own business you only have three options. The first option is to start your own business and do it all from scratch. The second option is to buy an existing business that’s for sale and build on it. This option will only work if you have some money you can get to fund your purchase. Perhaps Donald Trump is your neighbor and you’re on first name terms then that’s a great place to start. If that’s not the case, perhaps you have some money in a 401k or have some family or friends that believe in you, then that may be a better option. The third and final option is to buy the rights to a local franchise.
So there we go. Perhaps you thought there was only one option but in fact there are three. But how do you decide which one’s the right option for you? I would suggest it’s no more complicated than four factors. In no particular order, these are your personality, how much money you have to invest, your risk tolerance, the role you’d like to play in the business and your personal skill set.
The following table may give you some help looking at each of the three options then deciding what makes the most sense to you.
Starting
a new
business
Buy an
Existing
business
Buying rights
to a
franchise
Availability
None
Limited
Many
Established business methodologies
None
Hopefully
Yes
Documented processes
None
Limited - if at all
Yes
Training
None
Initial 2 weeks or so
Initial and ongoing
Investment V Profit
None
Yes
None
Support during ownership
None
None
Yes
Risk
Highest
Unknown until
you’re the owner
Many variables
Finance availability
Very difficult
Yes
Yes
How to predict success
Success based
on projections
Success comes
from history only
Success based on current owners feedback
Decision maker
Owner
Owner
Follow the system
Instant cash flow
No
Yes
No
Established customer relationships
No
Yes
No
Established relationship with suppliers
No
Yes
Maybe
Established reputation
No
Yes
Yes
Established brand
No
Yes
Yes
If you would like some free documents to help plan your move into business ownership, please visit my website, www.Andrew-Rogerson.com. Once the home page loads, choose the “Sample Documents” option from the menu on the left hand side and help yourself to 21 documents including business plans, break even analysis, profit and loss projectors, balance sheets, loan amortization calculators and more.
About the Author:Andrew is a 5-time business owner that loves helping entrepreneurs exit or enter business ownership. His services include business brokerage; helping owners sell and/or buyers purchase a business. He also provides consulting on purchasing a franchise, certified machinery and equipment appraisals and business valuations. To ensure this is done to the highest standards, Andrew carries the CBI designation from the International Business Brokers Association and the CBB from the California Association of Business Brokers. Appraisals for Machinery & Equipment are certified with the CMEA designation from the NEBB Institute. Andrew carries a Brokers License from the California Dept. of Real Estate, is a member of the Sacramento Metro Chamber of Commerce and the Sacramento Chair of the California Association of Business Brokers. Andrew is available for speaking engagements.
Article Source: ArticlesBase.com - Starting a business...what are my options?