Going into business is a pursuit of earning profit. There are several ways to get into it, but which one is the right way for you? Should you become a startup or should you buy an existing business?
Start a Business
Starting a new business cost less than buying a franchise or an existing business. The catch is that you have to develop all the systems that the business needs by yourself.
Startups can take anywhere, from a few months to years before taking off. Some startups don’t flourish at all. To begin with, cash flow may only be enough to sustain operations. It depends entirely on your product, service, or niche on how soon it will take to generate any profit.
You will need to develop a product, market it, and find clients who will give continuous support to your product. Building up a customer base can take a while and during that phase, you’ll be spending your money on overhead. Add to that the fact that most new businesses don’t even last ten years; it can be tiring and highly stressful. If you succeed and make the business profitable, however, you’ll find the rewards worth all the effort.
Buy a Business
Buying an existing business mean you are paying for the existing cash flow, the system, and the clients. You won’t have to reinvent the wheel as everything’s already in place. You’ll skip the generally profitless starting period and get right down to earning a profit.
The cost to buy into an existing business is exponentially higher than the cost of a startup. Of course, it is also easier to get financing for buying a business with a proven track record. You need to put together a team for the purchase process. You’ll need a banker and an accountant. If you live in Colorado, then a business attorney specializing in business law is what you need. If you’re buying a business in the state, you should consider putting together a local team, as they’ll know more about the situation.
Remember that running a business is not a solo project. Surround yourself with competent advisors and mentors to smoothen the process. A strong core team can better assure you of success.