Sam Makad
Sam Makad is a business consultant. He helps small & medium enterprises to grow their businesses and overall ROI. You can follow Sam on Twitter, Facebook, and Linkedin.
You can either start your own business from the ground or buy one that already exists. Follow down some tips that can help you decide which is the right path for you.
Is there a business idea that has been haunting you for a while? Or maybe it's not just an idea, maybe you have an entire plan. Also, it could be the desire to lead and administrate that is overwhelming you now, but with the lack of a business plan.
Anyways - trying yourself in the business game is the path you might be willing to explore. But here is the question: should you buy a business on a marketplace or it would be a better idea for you to start one from scratch?
Starting out entrepreneurs usually struggle to get on the track of the stable incoming cash flow. Harsh truth is that some businesses even die before they reach that track.
And here is what makes buying an existing business or a business plan (franchise) so attractive. This way you can get the stably coming revenue or at least the proven scheme of how the revenue will come to your business.
As a business owner, you will start by performing the role of an executive without the necessity to deal with the problems associated with building a business from scratch and will be free to think about the development options while having some ongoing processes that can bring money at the moment.
Let's look closer at what makes buying a business a good option and what pitfalls it may have.
There are many ways to become an owner of an existing business - buy it on specialized websites or directly from business owners, getting buying a franchise.
Thoroughly researching and conducting due diligence is crucial when buying a franchise opportunity. A list of the best franchises to own gives you a chance to explore opportunities with a strong brand reputation, a proven track record of success, and a support system that aligns with your needs. Additionally, take into account the initial investment, ongoing fees, and terms of the franchise agreement. By carefully evaluating these factors, you can increase the chances of choosing a franchise that is both profitable and fulfilling.
And surely purchasing a business has benefits, such as:
It cannot be that simple and nice. Of course, when buying a business you may come across problems and should be ready for certain issues, for example:
So, buying a business has pros and cons to think about. And it would be better to study them properly before getting into the game.
Starting a business from scratch is a paradise of creativity for newborn entrepreneurs. They use all the creativity to reduce seed capital, to create new amazing things, they make their own rules and their own way in everything. Wonderful, isn’t that? Let’s have a closer look.
Starting a business is like pulling puzzle pieces all together to make an amazing something. You develop an idea, you take care of this idea to be brought to life. Here are some of the advantages you get when taking an idea and turning it into a working business:
The negative aspects of starting a business stop so many of us with great ideas from actual actions. Here are some of the drawbacks of building a business from scratch:
Becoming an entrepreneur is a nice path, an adventurous one. But the one who chooses should be ready to face difficulties and be ready to get over troubles and fight for success.
A franchise option can be an ideal bridge between building a business from scratch and buying an existing one.
How it works in general: you get the license to conduct business under the existing brand and using the existing business plan and tools. Sometimes you also get the training and expert assistance from the beginning.
The starting budget can vary - from hundreds of dollars to millions.
As a franchise holder, you may conduct business and fully feel like an entrepreneur. But you should be ready to follow rules made by franchise owners. Also, to conduct a franchise you would need experience running a business, after all, you have a plan, but you are going to be the one who takes action.
There is no universal answer to this question. As, probably, everything in this wonderful awful world, both buying an existing business and building a one from scratch has pros and cons to think about. You should take into account everything - the time, the money, the experience you have - to come up with the ideal scenario for you to get into the business world and become a successful player out there.
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Sam Makad is a business consultant. He helps small & medium enterprises to grow their businesses and overall ROI. You can follow Sam on Twitter, Facebook, and Linkedin.
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