Starting a business and your start-up success

Starting a business can be a good idea, especially if you have a viable idea you are passionate about and cannot find a suitable existing business to buy and re-direct. However there are risks, as failure rates show. There are many factors to consider when you start a business; including your skills, the benefits, costs, risks and easier options.

People start businesses for all kinds of reasons, such as; the money, realising your dream, getting to control your own destiny and job security. You work on your own terms; including when you work, where, who with, and how much you earn. But possibly the key benefit of working for yourself is ‘the why’ - you get the daily satisfaction of working at something you love, that reflects you and your values, and if at some point you find that this is no longer the case, as the boss you have the power to make the changes to get back on track.

This all sounds very good, so it’s important to remember that starting a business is considered high risk territory. To make sure you have your best chance of being on the right side of scary statistics like “53% of small businesses fail within the first three years,” you need to honestly assess your business idea before you start. Firstly, you need to determine that there is an opportunity in the market for what you want to do; that there is not too much competition, or a lack of interest in your product or service. Then consider whether you can secure the resources you will need including reliable suppliers, staff, a building in the right location, etc. You will also need to take into account what your start-up costs will be, how long it will realistically take to break-even, and how long you are able to support a business that is not breaking even.

Owning your own business now offers arguably as much job security as working for a large corporation, however starting a business from scratch is not the only way to become your own boss, and you should always weigh up easier and less risky options like buying a business. In buying and adapting an existing business you will often start with a customer base and cashflow, saving you time and money, and still be able to alter the direction of the business to be in keeping with your vision. If you are able to start up a new business with good skills, financial controls and knowledge of your market, then your chances of success are greatly improved.

If you understand the risks and have the motivation, skills and belief in your idea, then go for it. Always do your homework, and look for more cost effective options when embarking on your journey; as building a business, client base, and negative cashflow is only sustainable short term. Research what’s around that could give you a leg-up; check-out check out our Business for Sale Opportunities.

Buying an existing business is a great, lower risk alternative to starting a business

View the 10 things you must know before you buy a business.

By Richard O'Brien - nzbizbuysell
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