You’ve been in Corporate America for years, learnt the ropes including when to stick your neck out do something…or not; but now you’ve decided or its been decided for you that there’s more to life than the whims of an employer and so it’s time for you to start your own business…now.
How exciting!!!
So you have some questions and one of the first has to be – what are my options?
If you’ve decided you want to start your own business you only have three options. The first option is to start your own business and do it all from scratch. The second option is to buy an existing business that’s for sale and build on it. This option will only work if you have some money you can get to fund your purchase. Perhaps Donald Trump is your neighbor and you’re on first name terms then that’s a great place to start. If that’s not the case, perhaps you have some money in a 401k or have some family or friends that believe in you, then that may be a better option. The third and final option is to buy the rights to a local franchise.
So there we go. Perhaps you thought there was only one option but in fact there are three. But how do you decide which one’s the right option for you? I would suggest it’s no more complicated than four factors. In no particular order, these are your personality, how much money you have to invest, your risk tolerance, the role you’d like to play in the business and your personal skill set.
The following table may give you some help looking at each of the three options then deciding what makes the most sense to you.
|
|
Starting
a new
business
|
Buy an
Existing
business
|
Buying rights
to a
franchise
|
|
Availability
|
None
|
Limited
|
Many
|
|
Established business methodologies
|
None
|
Hopefully
|
Yes
|
|
Documented processes
|
None
|
Limited - if at all
|
Yes
|
|
Training
|
None
|
Initial 2 weeks or so
|
Initial and ongoing
|
|
Investment V Profit
|
None
|
Yes
|
None
|
|
Support during ownership
|
None
|
None
|
Yes
|
|
Risk
|
Highest
|
Unknown until
you’re the owner
|
Many variables
|
|
Finance availability
|
Very difficult
|
Yes
|
Yes
|
|
How to predict success
|
Success based
on projections
|
Success comes
from history only
|
Success based on current owners feedback
|
|
Decision maker
|
Owner
|
Owner
|
Follow the system
|
|
Instant cash flow
|
No
|
Yes
|
No
|
|
Established customer relationships
|
No
|
Yes
|
No
|
|
Established relationship with suppliers
|
No
|
Yes
|
Maybe
|
|
Established reputation
|
No
|
Yes
|
Yes
|
|
Established brand
|
No
|
Yes
|
Yes
|
If you would like some free documents to help plan your move into business ownership, please visit my website,
www.Andrew-Rogerson.com. Once the home page loads, choose the “Sample Documents” option from the menu on the left hand side and help yourself to 21 documents including business plans, break even analysis, profit and loss projectors, balance sheets, loan amortization calculators and more.
