3 Ways to Start a Business
Merri Cronk
President| Sr. Franchise Consultant| Educational Speaker and Trainer| Advisor to Executives Exploring Franchise Ownership
Did you know there are three ways that you can go about starting a business??
Starting From Scratch
Some people, the true innovators and entrepreneurs, want to start a business from scratch. They love the idea of creating all of their own processes and systems.? They want to make all of the decisions and keep all of the money.? That can be great if they're really organized and if they've got a long enough financial runway to get through the trial and error of starting something from scratch. Not all of us have that.?
Also, looking at starting a business from scratch can be the most expensive option, depending on the trial and error that you go through.? It can also be very difficult to get funding for a business you are starting from scratch, because there is no track or experience.?
Investing in an Existing Business
Another option to starting a business could be investing in an existing business. Some people want to buy something that's already out there and that someone else has created or bought.? They want to continue to run it, see the benefits of the cash flow, and even be able to grow it.
Sometimes the challenge with buying an existing business is finding one that's in good condition and making good money. You may want something that will allow you to make changes and see an increase. It is important to know there's not a decline in the industry that you are getting into. You also want to make sure that you have the leverageable skill sets and time available necessary to continue to run that business.?
While it can be attractive to get into a business with existing cash flow, you will also pay a premium for getting into it and have higher debt service.?
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It can take a long time to find an existing business to buy that fit your criteria. Be ready to take a deep dive into due diligence. Make sure you have plenty of money to live on while you get through that too.??
Being in Business for Yourself, Not by Yourself
A third way you could get into business is investing in a franchise. People that invest in franchises are buying the rights to processes and systems.? They can then put their effort in and really grow the business in their local market for their own success, oftentimes more quickly than searching for an existing business or starting from scratch.?
What's nice about a franchise system is it’s a way of being in business for yourself, but not by yourself. You always have the support of the franchisor. You have the training upfront and the ongoing support as you grow the business.? They have a vested interest in you in growing that business, because that's how they make their money in the form of royalties.?
If you have an interest in exploring different ways to get into business or just want to explore franchise ownership, I'd be glad to talk to you about any of those things. Please scan the code that you see here and let's spend some time together.