BUSINESS VENTURE

HOW TO START-UP A BUSINESS

Ways of Business Startup

3 ways to start business:– Start, – Buy or – Franchise

Buying Existing Business

Advantages

– Successful existing business may continue to be successful

– Existing business may already have the best location– Employees and Suppliers are established– Equipment is installed and productive capacity is known– Inventories are in place and trade credits are established– Business hits the ground - running– New owner can learn from experience of previous owners– It is a bargain

Buying Existing Business

Disadvantages– Realities may be disguised. Real reasons are not stated– ill will might have been created by the previous owner– Employees inherited may not be suitable– Location might have become un-satisfactory– Equipment and Facilities may be obsolete and inefficient– Change and Innovation are difficult to implement– Inventory may be outdated or obsolete– Accounts receivable may be worse than the face value– Business may be over priced

Starting New

– Advantages– Independence/ Opportunity to be creative and

implement ideas in your own way– Disadvantages– Untested Waters– No formal support/ backup in Marketing– Must address to all startup resources and factors 5M

+ I– Generally the level is Small – Medium– External Finance is comparatively difficult– Generally needs greater effort - may be as a tradeoff

for lesser investment