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.

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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