business.

Starting a business...what options are available?

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



Moving into business ownership is a big decision. So is doingnothing. The economy is beginning to mend so demand for goods and services is starting to rebound. Owning a business and being successful is not a destination, it's a journey. Why not start that journey now rather than look back and regret you never tried.

Author:.

Andrew Rogerson is a 5-time business owner and Certified Business Broker 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 Equi... Go Deeper | Website

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