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Start a New Venture or Purchase an Existing Business in New Zealand?

In: Business and Management

Submitted By stretch1001
Words 2099
Pages 9
Throughout this essay the writer will discuss the pros and cons of starting up a new business or buying an existing one in New Zealand. We will begin by explaining why new ventures appear attractive to those entering the world of business, and then describing the more undesirable aspects of new start-ups. We will then continue on to explain the benefits of purchasing an existing business, and then the downfalls of this approach. Lastly, we shall compare the two options and arrive at a summarising conclusion. Making the transition into becoming a business owner in New Zealand can be highly beneficial for many people; however the appropriate groundwork and research must first be completed in order to make informed decisions regarding how the business is going to pan out.

Starting a new business is an attractive option for many New Zealanders as it offers capacious benefits and a potential vast improvement in lifestyle. Some of the advantages available include increased income, tax benefits, flexibility and the ability to determine all aspects of the business. Sole proprietors and owners of companies can increase their income exponentially if the business is a success, which can be a great improvement if one is unhappy with the wage they are on in their current employment. Business owners can legitimately use the tax system to their advantage, for instance if one decides to work from home, they have the option to write off a percentage of their rent or mortgage, as well as their utilities and practically anything that is related to the business, thus reducing their cost of living. This must be done with utmost judiciousness as any foul play or misjudgement can end in penalties and unwanted attention from the Inland Revenue department (NZ Government, 2011). Founding a business offers great flexibility, as the founder becomes his or her own boss and can choose the...

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