Have you been planning to start a business? Are you wondering whether to start a business from scratch or to buy an existing one? Here are a few pros and cons of buying or starting a business.
Advantages of starting your own business
You will have the freedom to align your new business with your vision, as well as the ability to implement ideas and target specific clientele. You will work towards building a name and reputation for yourself as you see best.
You can start the business with less capital compared to buying a business. You can start operating from your home and outsourcing services instead of employing full time employees.
Disadvantages of starting you own business
It might take a long time to begin making profits because you will be introducing your product to the market. You will need to build the confidence of clients and generate enough sales to make returns.
You will have to invest a lot of time and money to set up an infrastructure where getting financing might be a challenge.
Advantages of buying a business
If the business has a good reputation you will have existing customers. If you manage to make good sales then profits can begin trickling in shortly.
It will be easier to get loans, since financiers prefer dealing with businesses that have been in operation for some time. If you take over the employees initially working in the business, you will have a team of staff who understand the product and service.
Disadvantages of buying a business
Buying a business means that you will be taking over a vision. It might take time to align the business and staff towards your vision.
Buying a business requires caution and research; else you might end up investing in a business that has a poor record or bad reputation. You have to ensure the company is known for providing quality services, receives satisfactory customer numbers and is not involved in any illegal activities.
You will have to spend a lot of money upfront in the purchase of a business; compared to if you were starting from scratch.
Image: City by Salvatore Vuono on www.freedigitalphotos.net
Africa Report Team
February 21, 2011
Dear Paul,
You can look for resources in our Directory and by placing a Marketplace advert on our website. You need to contact any resources directly, with a business plan and find out what their requirements are.
Here are instructions on How to make a Marketplace listing.
Africa Report Team