It seems that there’s always some media hype about one start up or another.
Start ups are glamorous, exciting, hot. The question is: for those wanting to enter the entrepreneurial world, is a start up the way to go?
What about the option of buying an existing business?
Perhaps the first place to look for an answer to this serious question is within yourself. What kind of business person are you? Here are some character types to consider:
1. Risky Business
These business people want a lot of success from a great idea and are willing to take risks to get it. If they make it big – super! If they lose their shirt, they scrape together some capital and try again – no biggie.
2. Slow and Steady
This business person prefers to build his or her business little by little without too much risk-taking. He or she wants a good living but doesn’t mind if it takes time to achieve.
3. All in Moderation
Balance is the name of the game here. These people are willing to take some calculated risk-taking. They have the patience to build up the business over time, but not too slowly.
4. DIY Enthusiast
These entrepreneurs want to do everything themselves. They have this feeling that if they didn’t do it, it probably wasn’t done as well as it could have been.
5. On a Shoestring
This businessperson has a great idea but a tight budget. He or she wants to start small and expand by putting a part of the profits back into the business.
6. Risky Business
These entrepreneurs will often favour a start up. The proven track record of an existing business usually does not offer the financial potential they are looking for. In addition, many of these businesspeople are looking at carving out a new market niche. Thus, most existing businesses will not match their vision.
7. DIY Enthusiasts
These are entrepreneurs that will lean towards starting their own business. Of course, it is possible to ”make over” an existing business. In fact, that is one of the keys to turning a good existing enterprise into a great company.
However, DIY Enthusiasts want the freedom to do it all themselves from the ground up. Paying for an existing business’s fixtures and fittings, as well as its reputation and customer base, only to strip it all away to begin anew is not good business sense.
Existing businesses which are worth buying generally have established suppliers and clientele. There is a good financial history which can be used to predict likely future revenue.
As a result, their risk is less than a new venture. For these reasons, buying an existing business online is a good match for Slow and Steady business people as well as All in Moderation entrepreneurs.
On a Shoestring entrepreneurs can swing both ways. On the one hand, start ups are often less expensive than the purchase of an existing business – good for someone with a small budget. On the other hand, banks and other finance options are more likely to lend or invest in businesses that have solid proof of their rate of return.
Of course there are many other financial and logistical factors to take into consideration. However, it is equally important, if not more so, to include the business personality in the equation. After all, it’s this personality who is running the show.
This is a guest post by Jan Hollins
Jan Hollins works with Premier Business Sales that offers an exciting range of businesses for sale online.