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:

  1. Has no customers.
  2. Has no track record.
  3. Has no infrastructure.
  4. 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:

  1. Has customers.
  2. Has a track record.
  3. Has an infrastructure.
  4. 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.

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Why buy a business when you can start one?

A start up:

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

An established business:

  1. Has a defined business model that you must fit into initially.
  2. Has a history, some of which may be unknown to you as the new owner.
  3. Usually has overhead to support.
  4. 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.

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