For the last few years or so you have been toying with the idea of going into business for yourself. If you’ve reached the point where your musings are serious, you’re probably weighing your options, including whether or not to take over the reins of a company up for grabs or starting fresh with your own company. It may help to examine some pros or cons of either.
When doing a little research you’ll find your final decision may come down to the answers you reach for three key questions that you will need to spend some time thinking about. These are:
1. What type of business do you want to own?
2. How knowledgeable are you about your chosen business interest?
3. Are you willing to take on financial risks?
When considering what type of business you want to own, you need to establish how deeply you want your personal branding to reach. If you’re taking on an established business, this means you’re also taking on its established brand, which if negative could mean an uphill climb in turning public perception around. If you decide this means you’d rather start fresh, you’ll need a solid business plan and people on your side who know what they’re doing to help you get up and running.
Do you know what you’re doing? What is your experience level in the field of business you’re interested in going into? If you have little experience it would be more beneficial to take over an already established company. The reason for this is mostly financial. It takes a lot of money to get a company up and running and requires someone who is incredibly knowledgeable in finance to make the right decisions. This does not mean that taking over an established business will be cheap or without risk, you will still need to spend a lot of time learning the ins and outs of the business operations and being able to identify where the company is doing well and where changes need to be implemented.
Finally, you must determine how prepared you are for financial risks. This includes knowing what your limitations are. If you take on a previously owned business you’ll definitely be putting down a bigger initial investment and this is most always due as one payment, whereas with a start-up company of your own you can most likely get away with a smaller initial pay out. However, this also means you’re looking at waiting a few years before you see any ROIs of real significance. Keep in mind if you’re buying an existing company, financial institutions are more willing to give loans when you’re able to show an existing cash flow and company history.
If you are looking to start from scratch you should check out my websites for sale or the Boot Your Boss & Start a Booming Business guide.