Have you been thinking about kissing your boss goodbye to start your own business? It’s a dream a lot of people have, but it’s not as easy to do as you might think. It takes more than a passion for your work, or a great idea to make a go of running your own business. Plus, there’s always the possibility that your new boss might not be as great as you had hoped. Another option to consider is buying a business instead of starting one.
It’s very important to realise that there is a lot of risk involved in starting a new business. Quite a lot of new businesses, at least 40 percent, fail in their first year. Even the long term prospect isn’t that good, with almost 80 percent of new businesses not making it past the five year mark. You may be very good at whatever goods or services you’re providing but if you don’t have much experience running a business you may not be able to make a go of it. However, if you buy a business with an already proven track record you’re much more likely to be successful.
Another thing to think about is the kind of business you want to run. If you don’t want to make or market somebody else’s vision then you should definitely consider starting your own business. That way you know you’re starting out with a great reputation and can guide it in the direction you want it go. If making money is your primary goal, and you don’t really care whose vision your selling, then buying a business might be your best option.
The third thing to think about is how much risk you’re willing to take with your finances. Buying an existing business will involve more of an initial investment, but if you’re buying one that is successful you are less likely to lose your investment because it will be less likely to fail. Starting a new business may cost less in the beginning but you probably won’t see any profit until about three years.
There are a lot of things to think about if you want to run your own business. Whether you buy one or start your own you’ll need to keep in mind the experience you have, the type of business you want to own and how much of a risk you’re willing to take with your money. Once you figure that out, the rest is easy, as long as you don’t mind hard work and long hours, or dealing with the new boss.