So you want to become your own boss. There are several routes you can take – start a business from scratch, buy an existing business for sale, or in the middle ground, buy a franchise. As you’d expect, there are pros and cons to each option and only one will be right for you. It just depends on what exactly you want as a business owner – and we’re here to help you decide!
Chart Your Own Path With a New Business
Do you crave total independence and creativity, and want to build something that is your and yours alone? If so, you’d be best starting a business from scratch. Obviously the risk is higher though. You might have the best idea in the world or feel that you can do better than the competition, but you won’t know for sure until you try. Starting a business is arguably the most entrepreneurial option, in the truest sense of the word. It might pose the most risk, but allows for freedom and creativity. Just remember, it’s all on you, and don’t expect a quick win.
Hit the Ground Running with an Existing Business
Buy an existing business and you know where you are from day one. It takes a lot of the stress and pain out of starting a business. Of course, you’ll have to pay for it financially at the outset, as successful businesses for sale command a premium. But that outlay is typically offset by faster returns on your investment. And, while starting a business from scratch might not cost as much as if you buy an existing business, you will end up paying for your own research and development. Mistakes, as you’ll know, cost money. And that’s the downside of starting a business from scratch – it poses more risk.
Buying an existing business gets you an immediate income. Or it should if the business has been run properly. You tap into existing customers, have supply chains in place and if the handover is managed properly, you take over a ‘turnkey’ operation. This is entrepreneurship through acquisition, and offers more certainty than going it alone.
Find a Safe Course with a Franchise
Of course, there is an alternative. A happy medium where you get to start your own business from scratch but get all the benefits that you would get when you buy an existing business. And that alternative option is to buy a franchise. With a franchise you buy into a proven business model with marketing, pricing, branding and routes to market that have already been established – just like buying an existing small business. But you also get the benefits of building that business up from scratch in your own area, making your mark on it and having the sense of accomplishment from establishing something of your own. Of course, with both a franchise or an existing successful business – you’d be foolish to make too many changes to a proven formula.
Should you buy an existing business or start one from scratch, then? Whatever route you choose, you can tap into your entrepreneurial spirit. But that spirit is best dampened a little if you need to follow a proven model. Buying an existing business or starting a franchise is probably your safer option. And the familiar phrase ‘if it ain’t broke don’t fix it’ is worth remembering here, especially if you’re buying a business that has been successful for some time. That’s what you’re buying into. Don’t risk your investment by making wholesale changes.
But if you’d struggle working alone and need the support of a team around you, then focus on starting a franchise or investing in a franchise resale. And if you don’t need it to be your personal dream, and are
more focused on driving growth, or a fast return on investment – buying a business that’s already trading might be right for you.
Whatever you decide, Daltons can help you with our advice guides, and range of businesses and franchises for sale.
