Starting a business can be both exciting and frightening. If you have the right mindset then it can be a challenge that you’re happy to take up. However, if you’re more risk-averse or don’t have an entrepreneurial spirit, starting your own business can seem like an impossible dream. You might want to consider other options, such as buying an established business, instead.
Do You Have What It Takes to Start a Business?
Starting a business is a huge undertaking that can dominate your life for years. Startups can take up all your time, money, and energy in the early stages. You need to be focused, determined, and ready to turn your hand to anything. You also need to be ready to take some big risks. Many businesses struggle or even fail in the first few years, before they have established a customer base and started turning a real profit.
If you’re thinking about starting a business, then it’s a good idea to consider whether this is the right choice for you. You should think about your mindset and the risks of starting a new business:
- Are you an entrepreneur? Do you enjoy a challenge and feel ready to take risks?
- How much time, money, and energy can you put into the business? What other resources or support are available to you?
- What are the risks of your business idea? How will you reduce or manage them?
- Can you cope financially if your new business doesn’t make a profit?
- What happens if the business fails? Do you have a backup plan?
Are You Ready to Run Your Own Business?
The right attitude is essential for starting your own business, but you will also need the right skills and knowledge to keep it running. When you dream of starting a business, you might focus on your unique product ideas or the superb service you want to provide for customers. However, when you actually start a business you might need to write your own business plan, apply for business loans or other financing, design a marketing strategy, manage your own books, and ensure your business adheres to all the relevant tax and legal regulations. As the business grows, it may be possible to outsource some of these tasks or bring someone into the business to handle them for you. Running an established business can be a very different experience to starting a new business.
If you want to run your own business then it’s important to understand what this will entail and to know how you’ll manage all your responsibilities. You might want to think about the following points:
- What skills and experiences do you have that could help you manage a business?
- Are there any skills you need to learn or improve before you become a business owner? How will you do this?
- Can you afford to outsource or take on employees with the skills you need?
Should You Start a Business?
After thinking about what it takes to start and run a business, you should have a better idea of whether this is the right route for you. You might feel like a true entrepreneur who is ready to dedicate yourself to a startup and take on all the risks this involves. If so, then turning your idea into a new business could be the right option for you. On the other end of the scale, you might decide that you’re not ready yet or that you’d rather remain an employee than take on all the responsibilities of running a business.
However, many people will find that they are somewhere in between these two extremes. You might still want to run your own business, but be put off by the risks of starting one from scratch. If this is how you feel, then it may be best to take an alternative route to business ownership that will let you skip over the difficult startup years.
Alternatives to Starting a Business
If you decide that starting a new business isn’t right for you, it doesn’t mean that you have to give up on being a business owner. Another option is to buy an existing business rather than starting one yourself. You will still need the skills and knowledge to run your own business, but you won’t have to struggle through the hardest years as a startup. You can choose an established business that already has a stable customer base, contacts with reliable suppliers, and opportunities for growth. If the business comes with existing employees, you will also benefit from their skills and experience. You won’t need to do everything yourself.
Buying an existing business can be a good option if you feel ready to manage your own business, but you want to avoid the risks and challenges of a startup. If you’re interested in buying a business then the first step will be to get in touch with your local Business Partnership broker. We can advise you on the process and help you find the best business opportunities in your area or beyond.
Contact us here to speak to your nearest broker or for more information about purchasing a business.