There are several options you have when contemplating starting a business. These include:
• Start a business from scratch
• Buy an existing business
• Buy a franchise
• Start a business with one of the Network Marketing (NWM Companies). These are also called MLM, Direct Selling and Referral Marketing.
Over the next days I will talk about each of these options. Today we will look at the first one – starting a business from scratch.
You have many considerations with this option which include;
- Will you do it alone, have partners and how will you structure yourself?
- Where will you locate the business? Will you start from home or will you have premises such as a retail outlet or an office.
Starting a conventional business from scratch will require you to put in long hours, maybe not take holidays for sometime and be a bit of a jack of all trades . It is not an easy road but can be worthwhile for some. Having said that the number of successful start-ups is very small compared to the number of businesses started. Said another way the failure rate is very high.
It is highly unlikely you are skilled in all areas of business. Not many people are great marketers, sales people, technicians, bookkeepers, administrators and wonderful at systems – be prepared to out source the areas that are not your strength.
I also advise anyone that has not been in business before to get a mentor. There are some great mentors and programs available.
I have gone this route several times and would not do it again. In later posts I will be talking of my adventures, wins and losses, ups and downs. I have many learning experiences to share.
For now though if you are considering a conventional start up business please get advice from a good accountant (or experienced business person who can mentor you). Get your numbers analysed and be prepared to give it time and work to make it happen.