It’s often thought the highest risk way to get your own business is to start a business from the ground up. This is because businesses starting from scratch have a higher failure rate than a business purchase or a franchise start. Much of this is due to poor planning, under funding, and a lack of experience. There are many ways to deal with each of those issues though.
Given that you are reading these articles you seriously want to start a business right. You will be committed to proper planning and preparation which significantly improve your chances.
You can read my article, Debt Free Funding Opportunities, to get some creative ideas on how to pursue proper funding without becoming a debt slave. This will also increase your chances of success.
If you lack experience you should come to grips with that early. You can either take time to gain the proper experience, add the experience in partners or employees, or surround yourself with quality advisors or mentors. Some combination of those alternatives is usually best.
Starting a business and ideas you have for success put you on the offensive which is a great place to be. You will be able to shape and design the business from the very beginning. You won’t carry the large debt of a business purchase nor will you be subject to franchise fees or pricing restrictions.
Best of all you will have the full freedom to direct your business start up as you see fit to adjust to changing economies and markets. This has always been the strength of small business. When you are tied to large debt on a purchase, an existing culture of a business, or franchise restrictions you will have very limited options.
On the downside, I often see the new business and ideas for the start up not making provision for that inevitable one big mistake that happens during the first two years. To their credit and due to their experience, an existing business or franchise will have eliminated many of the big mistakes one can make. There is a real benefit to that experience.
The landscape of financing, the markets and the economy are making that experience and franchise benefit less valuable. Many of the issues facing business today have not been faced in the past. To some extent these level the playing field. A good small business can take advantage of such opportunities.
Starting a business from scratch is quite an adventure. Understand who your ideal customer is, understand what your unique selling proposition is, and do some basic business planning and you’ll give yourself an excellent chance for success.
by Steven Schlagel – June 21, 2009