Getting into Business:
If a person wishes to go into business they have three options. These options are:
1 Starting from scratch
2 Buying an existing business
3 Buying a franchise
1 starting from scratch:
How and why people may decide to begin a business from scratch?
If you start a business from scratch, you will need to ensure that you have enough money to do all the initial work of setting up a business and buying the stock. When starting a new business it is hard to predict how much income will be earned and what the expenses will be. It is important to have enough initial investment to meet the expenses involved in starting up the business and enough income to cover ongoing expenses. It may however, be hard to borrow money for a business that has not shown ability to succeed.
If you were thinking of going into a business you might decide to ask someone to join you as a partner. In this way you and your partner can share the risk of starting up in a business and share the profits. You can also share the time spent in the business. This can sometimes ease the burden of working long hours.
Advantages:
• The owner has complete freedom to set up the business the way they want it.
• The owner can determine the pace of the growth and change.
• There is no goodwill to pay for.
Disadvantages:
• Setting up a new business involves high risk and uncertainty.
• It takes time to train and hire staff, find a customer base and start making money!
Existing Businesses:
It may be better to buy an existing business that has been established for some time. All