Buying Vs Starting
You have a windfall or superannuation that allows you to buy a business outright. You already have customers, equipment, staff and suppliers. Existing business income may make it easier to get funding.
Rather than start from scratch, you want to take on and grow an established business with systems and procedures, customers and employees in place.
A start-up requires very strong business development and sales skills. You need to be more comfortable with an ongoing management role.
Fewer emotional challenges
It takes a special person to be able to sustain their motivation, self belief, enthusiasm and patience while they wait for their start-up business to break even. Buying a business that’s profitable or close to making a profit can be less stressful.
Running your own business can fit in with your lifestyle/family goals. You can keep it small or plan for growth to suit your own time frame.
You may not be able to pay for goodwill in an existing business, but may have enough cash to support yourself in the early, start-up years.
There are no businesses currently for sale in your sector or price bracket and you feel confident to make it work.
Idea or model
You have a new business idea or product to develop and want to do it your own way. Or you have a particular business model that you want to try out. Starting from scratch provides aunique opportunity to create a best¬of-breed model.
Starting your own business means you start afresh. Buying a business means you inherit historic issues, such as difficult staff or a bad reputation. In order to avoid this tangle, you decide to start your own business.
You already have a strong client base who would choose to follow you.
No matter what you decide here are some critical questions you should ask yourself
- Do you have a good accountant, lawyer and bank manager? If not ask around
- Have you done do your homework and research, speaking to right people and reading as much as you can will save you time and money.
- Have you done up a business plan – including cash flow budget and forecast for my first three years of operation
- Set performance milestones and how you’ll track them
- Have you done a financial plan and a marketing plan