Tweet

Advantages and Disadvantages of a Start-up Business

Written by: Don Daszkowski

Article Overview: What is a start-up business? A business is considered a start-up if an entrepreneur begins a business based on a unique idea and takes it all the way from the planning stage to actually running the business. The business is usually thought of as still in the start-up stage until it begins to produce sufficient revenue or sales to cover the cost of supplies and operating costs.

Advantages and Disadvantages of a Start-up Business

What is a start-up business? A business is considered a start-up if an entrepreneur begins a business based on a unique idea and takes it all the way from the planning stage to actually running the business. The business is usually thought of as still in the start-up stage until it begins to produce sufficient revenue or sales to cover the cost of supplies and operating costs.

Here are the advantages and disadvantages of a start-up business.

Advantages:

- Creativity can play a big part in starting and operating the business.
- There are no predetermined formulas or rules to follow; much less restrictive than a franchise or business opportunity purchase.
- The owner is in control of all aspects of the business, including the location and what the operation is to look like.
- The entrepreneur may draw from previous job experience, skills, and passion in establishing the business.

Disadvantages:

- Start-up businesses are typically more costly and risky since there is no proven formula.
- In order to obtain capital to fund the business, a lengthy detailed business plan must be put together.
- All of the details of starting the business, including licenses, marketing, naming the business, finding product sources, etc. are the responsibility of the owner


Before entering the business world with your new concept you should consider buying an exisiting business that has proven results and an established customer base. There are many sites that list thousands of businesses for sale like BusinessMart.com. You should strongly consider searching for an already established business or an already established system.

If you do decide to start your own business be prepared to wait 12 months to see a profit. If you are in a position to do this, then starting your own business can be very rewarding.

Related Articles
  Buying a Business FAQs
  Choosing a Business
  Buying a Business
  Advantages and Disadvantages of Joint Venture
  The Top 7 reasons why Franchising is Better than a Brand New Business

Article Tags:



Related Forum Posts
Should i get a patent? - Deciding whether to apply for a patent involves weighing up a number of advantages and disadvantages. Advantages You get protection for a pre-determined period, allowing you to keep competitors at bay. You can then exploit your invention yourself. Alternatively, you can license your patent for others to exploit it, or sell it, as with any asset. This can provide an important source of revenue for your business. Indeed, some businesses exist solely to collect the royalties from a patent they've licensed - perhaps in combination with a registered design and trade mark. See the page in this guide on how to license your patent. Disadvantages Your patent application means making certain technical information about your invention publicly available. It might be that keeping the details of your invention secret will keep competitors at bay more effectively. You'll need to be prepared to defend your patent. Taking action against an infringer can be very expensive. On the other hand, a patent can act as a deterrent, making defence unnecessary. See the page in this guide on how to defend your patent.
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Exclusive: Interview with Results - Hi Forum Members, I'm helping start up a Business Coaching and Consulting company here in Toronto, Ontario, Canada (a Subsidiary of RSC Business in Los Angeles). As a Research and Development Intern I am required to practice my listening and interview skills by surveying Small and Medium Businesses on thier Business. This Survey is designed by RSC Business to also assist the Business being interviewed more insight into their own business. I am looking to interview about 30 businesses across North America over the span of 3 months. At the end of these interviews I will be publishing a report of the results and they will be made available for free to the Interviewees. The Report data will include responses from a minimum of 100 interviews. I would like to extend this opportunity to members of the Forum. If you would like to have this short 20-30 minute interview conducted on your Business and you reside in North America please send me an email or PM. Please contact me at andy[at]jvprosperity[dot]com to arrange our interview and to get free access to the results when they are published.
Re: HOw to market a B2B consulting company - [quote="zohahunt77":428owzbi]Hi, I was wondering if anyone can tell me the difference between B2B and B2C. I don’t know about b2b marketing but I have done marketing so know things about it. I will suggest you to take online services which will spread your business all over web network. Online marketing is the best way to market any business.[/quote:428owzbi] B2B = Business to Business - You are marketing to other businesses. B2C = Business to Consumer - You are marketing to consumers.
English teachers learn Japanese as Interns - Yasunori, what about the many students that leave N. America to teach English in Japan. They may want to learn Japanese (maybe Business Japanese is a bit different) and the Japanese Business Culture.


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.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

What Type of Business Should I Start?

Tips to Take Control of Credit Card Debt

E Mail Marketing Campaigns

Suggestions

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.