So You Want To Have Your Own Business

SBOCTeam — Thu, 04 Sep 2008 13:16:00 GMT

By Adducent

Perhaps you need to do something new, a change from what you've been doing or you hope to build the financial security you aren't able to find by working for someone else. Maybe you can't find the right job to suit you and having your own business could be the solution. Whatever the reason; if you have the "itch" to have your own business you have two choices:

Do you start a business?

Do you buy a business?

Why start a business when you can buy one?

A start up:

Has no customers.
Has no track record.
Has no infrastructure.
Has no inertia. Everything is at square one.

There's a lot to learn about starting and running even a small business. Everything required to launch it is on you as the entrepreneur.

An established business:

Has customers.
Has a track record.
Has an infrastructure.
Has inertia. You become part of a business that is moving.

Generally, when you buy a business there is a transition period between you and the former owner helping get you used to the business. And there are usually experienced employees that know the details of the business operations. That help can be invaluable in cutting down your learning curve if you are new to business ownership or to that type of business.

Why buy a business when you can start one?

A start up:

Can be molded exactly the way that you want it.
Starts with a clean slate; no potential for anything in the past popping up that may be a problem to address.
Can easily be a 1-person operation with very low overhead to support.
Has no personnel management or significant administrative requirements.

An established business:

Has a defined business model that you must fit into initially.
Has a history, some of which may be unknown to you as the new owner.
Usually has overhead to support.
Usually has some personnel and administrative requirements.

Also, keep in mind:

It is usually easier to get funding to buy a business; established businesses have better access to capital and more opportunities to raise capital than does a start up business. Many start up businesses can be done on the "cheap" with the entrepreneur putting the effort and their own money into the business to get it launched.

If you don't want to undertake a financial or management burden of any size ... then you may want to start a small, single-person business where you have total control without management hassles and no overhead to support. That might work best if you are a person with a specific skill-set that translates into a service business.

If you want something that is more "turn-key", where you can step onboard a business already moving then you may want to look at buying a business. That might work best if you are more of a "manager" type and want to grow the business into something more substantial.

The above is all food for thought; and going into business requires a lot of thought on your part.

Bottom line it comes down to the one most important deciding factor.

Want to know what that is?

You! The option that has the most in favor and matches your own mindset should be the one you go with.

Remember, having your own business should begin with you thinking through what it is that you want to do, and what best suits you.

Starting a Business - Part II

SBOCTeam — Mon, 18 Aug 2008 15:18:00 GMT

Do I Need a Great Idea?

By Chris Freeburn

You know you want to be your own boss and run your own business. You've thought it through and asked yourself the hard questions and you are sure that being an entrepreneur is not only something that you find appealing, but something that you believe fits with your personality and work ethic. Now you need to decide what your new business will do.

Some entrepreneurs start off with a great idea. Maybe it's an original idea for a great invention, or software application, or even a service that no one else is providing to the public. In many cases, these people are so motivated by their idea that setting up a business to deliver on its promise is almost a natural step.

Not every entrepreneur has a Big Idea first, however. Many entrepreneurs begin with the desire simply to own their own business and then decide what that business should be. Having a bold, radical idea is good-even helpful-but it isn't a requirement for becoming an entrepreneur. Many entrepreneurs get their start in well-established, almost generic types of business like dry cleaning, landscaping, or repair services.

So how do you find the right idea for your business?

Start with yourself

The best place to begin your search for business ideas is yourself. First, take a good look at your own skills and interests. Do you have any specific skills or work experience that could translate into a business opportunity? For example, do you possess a technical education in a particular field (electronics, computer science, or engineering, for example)? Or perhaps you worked in a company that did something you think you can do on your own. If you did and you found that education or experience rewarding, than you may wish to leverage that asset into a new business.

Prior educational or work experience in a given field can also provide more than just knowledge -it can give you contacts with potential customers or experts who can help you launch your business.

More importantly, is there something that your particularly enjoy doing? Could that activity be the basis for a new business? Debbi Fields turned her passion for baking into a multimillion-dollar cookie empire when she and her husband founded Mrs. Fields Cookies in the 1970's. It's always easier to put in long hours building a business when you genuinely enjoy the work.

Look around

Is there something you think is missing where you work or live? Maybe you've noticed that the nearest dry cleaning business is in the next town, or that there is a pressing need for local child-care or dog walking for people who work all day. You can learn a lot about what products or services people in a given area might be willing to pay for by listening to your neighbors. Is there something they continually complain about needing, or not having nearby? If so, that might be the basis for your business opportunity.

The franchise option

If you want to own your own business, but are having difficulty generating an idea on your own, you might want to consider purchasing a franchise. By buying a franchise you are purchasing the right to open a store, restaurant, or outlet of an existing, and presumably successful, business.

A franchise reduces some of the risk of starting a business by yourself because you are purchasing an already established brand name complete with a track record and some level of support and advice from the corporate parent. Franchises usually have chain-wide policies governing pricing, vendors, location, decoration, advertising, and employment policies. Some entrepreneurs, especially first time business owners, find it easier to have all these decisions already made for them. Additionally, many franchisors-though not all-provide training for their franchisees on the mechanics of running their business, which helps further reduce first time-business owner anxiety.

Thousands of franchises-in diverse industries ranging from food vendors to skin care-are available for purchase in the United States and Canada.

However, owning a franchise isn't for everyone. While some business owners like having the details of their décor, prices, and products dictated by a corporate parent, others chafe under the restrictions. If total independence is something you crave, you may want to look for your own idea for a business.

Starting A Business

So You Want To Have Your Own Business

Starting a Business - Part II