Things You Must Know Before Going into Business for Yourself

When looking at going into business for yourself you have to decide how you want to achieve this goal. There are three ways that you can achieve this goal each of which has its own advantages and disadvantages. Before starting your business you need to weigh the advantages and disadvantages to see what works for you. For example if you want creative freedom you need to go with a way that allows you as the business owner to maintain creative freedom. Another example is if you want to see profits quickly then you need to go with a way that will have money coming in sooner.

Start From Scratch

When you start a business from scratch you must do everything from the ground up. Since you are starting from nothing you can have the creative freedom to create your company your way. Also since your business is new you do not have to worry about the possible bad reputation of a previous owner. However, most new start from scratch businesses run a high risk of failure. This is a pretty big disadvantage to starting your own business from scratch. Another disadvantage is that you do not have a positive reputation yet to ensure you success. It will take time to build your own reputation. Therefore seeing profits early is not likely when building your business from scratch.

Buy an Existing Business

Another way you can go into business for yourself is to purchase an already existing business. In most cases when you purchase an already existing business most of the business equipment is there. This will save you time and some additional money not having to purchase the equipment yourself. In addition you have the reputation and brand recognition with purchasing a business that has been around for awhile. Also if the business is still up and running at the time that you become the new owner you will see profits sooner than if you had created your business from scratch. The disadvantage is the cost of purchasing an existing business. While you can benefit from a positive reputation from the previous owner you can also be hurt if the previous owner had a negative reputation. It will take time as the new owner to overcome a negative reputation but it can still be done.

Franchise

There are many benefits to becoming a business owner within a franchise. Most franchises offer training and support to help you to ensure that you are successful. You also will have the benefit of a proven marketing system in place get clients/customers to know your company. Franchise businesses have a lower risk of failure than a start from scratch business. Brand recognition, marketing, support and training are all in place within a franchise. The disadvantages though are high franchise fees, very limited creativity allowed and potential for bad reputation. The bad reputation can come from owner X who owns a franchise in another town and is running his business in the ground with poor customer service. The same customers who were disappointed with owner X are now in your town and assume that your business within the same franchise is the same and then avoid your business. Within a franchise all owners depend on the reputation of all the other owners to ensure success.

Now that you have seen the three ways to go into business for yourself along with the advantages and disadvantages, you need to weight the pros and cons against what you want. The best thing to do is make a list and look everything over carefully. Then get advice from friends and family to help you see things that you may not have even considered. A fresh pair of eyes may catch something that you personally did not consider.