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Should you start your own business or buy one?

    Home Leadership Should you start your own business or buy one?
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    Zed Small Business Advisory

    Should you start your own business or buy one?

    By 7 Advisory | Leadership, Planning | 0 comment | 17 March, 2014 | 0

    Buying    Vs    Starting

    Buying

    Financial

    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.

    Growth

    Rather than start from scratch, you want to take on and grow an established business with systems and procedures, customers and employees in place.

    Skill set

    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.

    Starting

    Lifestyle

    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.

    Cost

    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.

    Availability

    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.

    Risk issues

    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.

    Clients

    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

    1. Do you have a good accountant, lawyer and bank manager? If not ask around
    2. 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.
    3. Have you done up a business plan – including cash flow budget and forecast for my first three years of operation
    4. Set performance milestones and how you’ll track them
    5. Have you done a financial plan and a marketing plan

     

    0
    Business, start up, strategic plan

    7 Advisory

    We have a dream. My dream is to change the world one small business at a time. It sounds hard to believe but nothing is impossible.

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