If you've got a passion for business and want to own a company, you're on the right track for the adventure of a lifetime. There are several ways to get started, but they're not always clear, and which is right depends on the individual. Should you buy an established company, or start your own from scratch?
There are advantages and disadvantages to both paths. Which will cost you more? Do you have a better chance of success going one way or the other? These are important questions, but fortunately, they're easy to answer.
Your preference might come down to what drives you as an entrepreneur. Are you trying to change the world, or are you making an investment for your future?
If you have a novel idea and want to build an empire around your wild innovations, starting from scratch feels like the natural choice. You'll get to shape every aspect of your business from the ground up. It's a romantic idea, but it's more work than most people think. You have to be willing to sacrifice years of your life on a project that might not go anywhere.
Buying an established business is a more reliable option. If you want to be your own boss and grow a company, your chance of success is higher when you have a solid base to start from. Established companies offer a proven model, strong resources, and greater financial security. You don't have to reinvent the wheel, you just have to know how to drive.
It can take a long time to develop employees, business models, and vital systems for your start-up. There is a lot of trial and error involved, and this is the big reason that most start-ups fail within five years. The safe bet is to take ownership of an existing enterprise. Starting from scratch is only necessary if your idea is so unique that it doesn't exist anywhere else.
Buying a business costs more up front than starting one, but the situation begins to reverse itself almost immediately after the purchase.
With an existing business, you have the advantage of making money right away. An established cash flow lets you set realistic goals and projections, giving you more control and clarity.
Most start-ups don't turn a profit for quite some time. It's completely normal to bleed money for the first several years in operation, and there's no guarantee you'll ever turn it around.
You also have to commit to working several years of your life with no income. Far too few entrepreneurs factor this in when they calculate the cost of a start-up.
At LINK Business Brisbane we work with entrepreneurs to find businesses in their industry and price range. The sellers pay all the fees, so you don't have anything to lose by taking a look at our listings to see if there's an opportunity available for you right now.
P. 07 3831 2300