|
|
Like this article? PLEASE +1 it! |  |
|
Starting a business…what are my options?
| Guest post by: Andrew Rogerson |
Article Overview: This article discusses the options available to a new entrepreneur planning on entering business ownership. It explains a new entrepreneur has three options and how to consider which option is best for their situation.
 |
Free Download - 10 Reasons Your SBA Loan May Be Declined By Andrew Rogerson |
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
|
Related Articles
Choosing Options
Should you buy or start a business?
Starting a free online business
Starting a Home Based Business-Some Important Things Freelancers Must Know
Successful Internet Home Based Business Recruiting Process
Article Tags: Andrew Rogerson, business, Business broker Sacramento, business escrow, business for sale, Business ownership, business plan, due diligence, Entrepreneur, exit plan, franchise, franchise for sale, Murphy Business and Financial Sacramento, Sacramento business broker, Sacramento business ownership, Sacramento business valuation, Sacramento business value, Sell a business, succession planning
|
About the Author: Andrew Rogerson RSS for Andrew's articles - Visit Andrew's website Andrew Rogerson is a 5-time business owner that loves helping entrepreneurs sell or buy a business. Andrew currently holds the Certified Business Intermediary (CBI) designation from the International Business Brokers Association (IBBA), the highest designation awarded by the IBBA. Andrew has also earned the Certified Business Broker (CBB) designation from the California Association of Business Brokers (CABB.) He holds a Certified Machinery and Equipment designation (CMEA) from the NEBB Institute and is a Certified Senior Business Analyst (CSBA) with the Society of Business Analysts. Andrew is a member of the Sacramento Metro Chamber of Commerce and past Chair of the Sacramento Chapter of the California Association of Business Brokers. Andrew is also the author on a series of four books: Successfully Sell Your Business, Successfully Buy Your Business, Successfully Buy Your Franchise and Successfully Start Your Business. For more information go to http://www.businesstransactionbooks.com Click here to visit Andrew's website   Successfully buy a business |
Related Forum Posts
Re: Help for Inventors
- I think you're right Michelle. We need several options when it comes to something so important. Many people will sink their life savings into their inventions and they don't want to trust someone just because of something one person says about them. They should thoroughly check things like this out and you are just giving them more options. Kudos!
Drupal
- Not sure if this would help, but figured I would mention it. Have you looked into a Drupal site? Unreal number of options and search engines love the format. There are also plenty of blogging options and many other possibilities. There are many, many free templates.
Chris
Re: Moderators on vacation
- Hi Everyone,
I will be away for the next 4 days.
Starting now.
Searching for options for good investments!!!
- Hi everyone, I have a few months left in my company before I retire …. and I would like to know about the options that I can consider for my retirement plan. I am taking about some real good investments so that I get my future secured (want it secured for the kids too). I have a few options that I can look up to like REI, mutual funds and stocks…..but need a bit of advice from you to make a better decision.
Re: 16 Year Old Entrepreneur
- Wow! It's truly amazing what young people can do when they are given the tools to be plugged in and are enabled. Back when I was growing up, the internet was simply a NASA/university-only network that was never glorified the way we thought it would be today. Our options to publish anything, let alone a book would have been dismal at best. This guy's success speaks to the evolving world around us, and to the limitless options the new generations have.
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: 
4 Building Blocks of an Effective Talent Management System
Simon Fuller Quotes
Lesson #3: “Tell ‘em quick and tell ‘em often”
Searching for the Stars: How Yang and Filo Took Their Business to New Heights
Salesperson Wimp-Out: I Need Help 
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Are You An Accidental Consultant?
Resolving A Conflict Between Two Sales Staffs
Do You Pretend To Listen To People?
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.