If you have decided to start a business, chances are that you have also probably thought about what kind of business exactly you would want to go into. More importantly, it is expected that you have also given a lot of thought to what type of business as well. Whichever type you choose, there are financial implications to consider.
Would you want to start a business from the scratch? Would you want to buy one? Would you want to go into some sort of partnership? Here is a guide to help you make the best decision.
- Starting from the Scratch: This is often the most common method for starting entrepreneurs. This works for you if your product or service offering is new to the market. This also works if barrier to entry in that field is relatively low- cost-wise.
- Buying an Existing Business: While this option may not be as cheap as the first option, it works perfectly fine if you have enough money and the business already has specialized equipment, a trained workforce and/or if the industry you want to do business in requires intellectual property which would take you some while to build. Find a business which ticks all the boxes and which- in addition, is profitable and buy.
- Purchasing a Franchise: Another option- which may take the best of both previous option, would be to purchase a franchise. With this option, you find a profitable business with a strong brand and market presence. You would, typically, be provided with a lot of the tools and resources necessary to getting your business started. Your focus will then be to successfully run and manage the business.