Advantages of Starting Up a Business

Advantages of Starting up a Business * Being your witness Boss you can make your own decisions, keep your own magazine and non keep back to answer to The Boss * Hard Work & go through How If you ar a hard worker and / or harbour large industry know how, you whitethorn want to benefit from the long hours you do or the knowledge that you squander acquired over time. * Financial Independence integrity day, you may realise your dream of financial independence * Creative license no more restrictions, you can do what you like and have the emancipation to work, design, create, build what you think is best your way Goodwill you dont have to soften for it (as if your would if you were subverting a short letter) you get to build it * Location, Premises, Building Fitout you get to remove it all * Staff your not lumped with staff you dont want. You hire and train from peter your way * No Bad Name a fresh demarcation, a fresh start. Your name has no bad history with supplie rs or customers. If you buy a business, you may find some people just wont draw with the business because of past dealings * Business Image you create the business image you want. Your way.Disadvantages of starting signal your own minute or medium business can include * Cash Flow your business may not have a positive cash flow for two long time how be you going to cover that? * Competitors you may aim all this time, bills and effort into your business and a large competitor targets your customers and offers them a quasi(prenominal) product / service at below your cost until your business has failed. magical spell this may be anti competitive and contravene sections ofThe Trade Practices practice 1974, it may be too late for your business * Homework have you done it?You may do it all and then find when you are all set up, that something from left field becomes apparent and significantly alters the expected value of your business * History If you buy a business, you are b uying something. You are buying history of the business trading, you have staff in place, equipment and exposit in place, customers ringing in with orders on your first Monday morning. If you start a business, you have no history. Ein truththing must be generated from scratch. * Married to the Business this is a common hrase from small business owners. It basically means, your hours of work and level of cargo is such that you cannot take a holiday, your business is always with you (day, nights weekends) and basically your get laid is on the line. You cant just throw the keys back and give it all aside if it gets too hard * Suppliers Suppliers may not extend you credit as your business has no history, so you may have to pay direct for your goods, and you may not collect money from your customers for those goods for 90 120 days.This is very detrimental to cash flow. Can you sustain this? Have you factored it into your budget? * Family is your family locating such that you can undertake this huge venture of starting a small business from scratch? Think carefully close to starting a business from scratch. It often means a huge break with no guarantee of reward. Your topical employed situation may very be a better position than starting a small business. Good luck, in whatever you may decide. Please think about the advantages and disadvantages of starting a small business.Our list above is hardly a starting point, each situation will be different. If you are mischievously considering starting a small business, Rogerson Kenny Business Accountants offer a reconcile initial consultation, so you can discuss with us your ideas Advantages and disadvantages of buying an brisk business Advantages * Some of the groundwork to get the business up and trail will have been done. * It may be easier to obtain finance as the business will have a proven track record. * A market for the product or service will have already been demonstrated. There may be established customers, a reliable income, a reputation to capitalise and build on and a useful interlock of contacts. * A business plan and marketing method should already be in place. * Existing employees should have experience you can draw on. * umpteen of the problems will have been discovered and solved already. Disadvantages * You often take to invest a large amount up front, and will also have to budget for professional fees for solicitors, surveyors, accountants etc. * You will probably also need several months worth of working capital to ssist with cashflow. * If the business has been neglected you may need to invest quite a bit more on top of the purchase price to give it the best chance of success. * You may need to honour or renegotiate any outstanding contracts the preceding(prenominal) owner leaves in place. * You also need to consider why the current owner is selling up and how this might impact the business and your winning it over. * Its possible current staff may not be halcyon with a new boss, or the business might have been feed badly and staff morale may be low. Advantages and disadvantages of franchisingAdvantages * Your business is found on aproven idea. You can check how successful new(prenominal) franchises are before committing yourself. * You can use a recognised scar nameandtrade marks. You benefit from any advertising or furtherance by the owner of the franchise the franchisor. * The franchisor gives yousupport usually including training, help scope up the business, a manual telling you how to go bad the business and current advice. * You usually haveexclusive rightsin your territory. The franchisor wont sell any different franchises in the same territory. Financingthe business may be easier. Banks are sometimes more likely to lend money to buy a franchise with a good reputation. * You can benefit from communicating and communion ideas with, and receiving support from, other franchisees in the network. * Relationships withsuppl iershave already been established. Disadvantages * Costsmay be higher than you expect. As well as the initial cost of buying the franchise, you pay continuing management service fees and you may have to agree to buy products from the franchisor. The franchise agreement usually includesrestrictionson how you can run the business. You might not be able to make changes to suit your local market. * The franchisor might goout of business. * Other franchisees could give the brand abad reputation, so the recruitment process needs to be arrant(a) * You may find it difficult tosellyour franchise you can only sell it to someone approved by the franchisor. * All profits (a part of sales) are usually shared with the franchisor.