Making the Choice Between Buying or Starting a Business
Thinking about going into business is enough to get the excitement going, but making the decision as to whether you are going to start a new business or buy an existing business may be a decision that you are being faced with.
If you are an entrepreneur by heart and have some sound business concepts then you may be leaning towards starting a business from the ground up. This comes with a lot of decisions and a lot of preparation far before you will be ready to open the doors.
A lot of people consider themselves entrepreneurs when they are thinking about a business, but once they start taking the first steps then they begin to question themselves. One of the biggest hurdles is that they do not question their ability, but they question whether the business concept when turned into a business will be profitable.
If the success of the business were totally dependent on the skills of the entrepreneur then it may not be such a stressful decision, but there are other factors that have to be considered. The business concept may be a strong one but is the economy strong enough to launch the business, and how is the dollar fluctuating. What looming events are in the near future that could have an a major impact on the business both in a negative as well as positive manner?
For those that don’t have an actual business concept but feel they have what it takes to run a business, then buying an established business may be the best choice. This too comes with a lot of decisions to be made, and there are no guarantees that just because it’s an established business that has been successful up to this point that it will continue on the same path.
There are a lot of variables to be considered. Is the present business owner selling because they feel that there is going to be a down turn in the industry. Does the business need to be expanded and the current owner does not have the funds?
It is going to take a lot of time and research into any potential business that is up for sale to determine how viable it is. You are going to have to negotiate the purchase price. You are also going to have to be sure that you are entering into an industry that you at least know something about and one that you find of interest.
In either choice for your new business venture you need to implement a lot of thought and research.