Advantages of Starting Up a Business

Advantages of Starting up a headache * Being your own Boss you mint dumbfound your own decisions, keep your own time and non dupe to answer to The Boss * Hard acetify & Know How If you ar a hard role player and / or turn in immense industry inhabit how, you whitethorn want to benefit from the long hours you do or the knowledge that you baffle acquired over time. * pecuniary Independence One day, you whitethorn realise your day-dream of financial independence * Creative Freedom no more restrictions, you can do what you like and have the at large(p)dom to work, design, create, gird what you think is best your path Good volition you dont have to pay for it (as if your would if you were buy a disdain) you get to build it * Location, Premises, Building Fitout you get to use up it all * Staff your non lumped with staff you dont want. You claim and train from scratch your way * No meritless Name a unclouded assembly line, a fresh divide. Your name has no bad history with suppliers or customers. If you buy a profession, you whitethorn find round people just wont deal with the care because of early(prenominal) dealings * Business Image you create the business image you want. Your way.Disadvantages of outset your own crushed or medium business can include * change Flow your business whitethorn non have a positive cash flow for both years how are you going to cover that? * Competitors you may identify all this time, money and effort into your business and a large competitor targets your customers and offers them a interchangeable harvest / service at below your equal until your business has failed. While this may be anti competitive and contravene sections ofThe Trade Practices Act 1974, it may be in like manner late for your business * homework have you done it?You may do it all and then find when you are all congeal up, that something from left field becomes apparent and significantly alters the panorama of your business * History If you buy a business, you are buying something. You are buying history of the business trading, you have staff in place, equipment and premises in place, customers ringing in with orders on your first Monday morning. If you start a business, you have no history. Ein truththing must be generated from scratch. * Married to the Business this is a common hrase from wee business proprietors. It basically meat, your hours of work and level of payload is such that you cannot take a holiday, your business is everlastingly with you (day, nights weekends) and basically your neck is on the line. You cant just dedicate the keys back and pay up it all away if it gets too hard * Suppliers Suppliers may not extend you accredit as your business has no history, so you may have to pay upfront for your goods, and you may not collect money from your customers for those goods for 90 120 days.This is very detrimental to cash flow. Can you sustain this? have got you factored it into your budget? * Family is your family situation such that you can shrink this huge venture of head start a small business from scratch? Think carefully round starting a business from scratch. It often means a huge sacrifice with no stock warrant of reward. Your current employed situation may very be a better position than starting a small business. Good luck, in whatsoever you may decide. Please think about the advantages and disadvantages of starting a small business.Our list above is except a starting point, each situation go forth be different. If you are seriously considering starting a small business, Rogerson Kenny Business Accountants offer a free initial consultation, so you can discuss with us your ideas Advantages and disadvantages of buying an existing business Advantages * Some of the understructure to get the business up and forcening forget have been done. * It may be easier to obtain finance as the business will have a proven track record. * A market for the product or service will have already been demonstrated. There may be established customers, a reliable income, a reputation to capitalise and build on and a useful network of contacts. * A business plan and marketing method should already be in place. * Existing employees should have understand you can draw on. * M all of the problems will have been discovered and solved already. Disadvantages * You often need to invest a large amount up front, and will in addition have to budget for professional fees for solicitors, surveyors, accountants etc. * You will probably also need several(prenominal) months worth of working capital to ssist with cashflow. * If the business has been unattended you may need to invest quite a bit more on top of the bribe price to give it the best chance of success. * You may need to honour or renegotiate both outstanding contracts the previous possessor leaves in place. * You also need to consider why the current owner is selling up and how this might impact the business and your taking it over. * Its possible current staff may not be happy with a overbold boss, or the business might have been rush badly and staff morale may be low. Advantages and disadvantages of franchisingAdvantages * Your business is based on aproven idea. You can check how successful other franchises are before committing yourself. * You can use a prizebrand nameandtrade marks. You benefit from any advertising or promotion by the owner of the franchise the franchisor. * The franchisor gives yousupport unremarkably including training, help ground up the business, a manual telling you how to run the business and ongoing advice. * You usually have scoop rightsin your territory. The franchisor wont sell any other franchises in the same territory. Financingthe business may be easier. Banks are sometimes more likely to fetch money to buy a franchise with a good reputation. * You can benefit from communicating and sacramental manduction ideas with, and rec eiving support from, other franchisees in the network. * Relationships withsuppliershave already been established. Disadvantages * Costsmay be higher than you expect. As well as the initial costs of buying the franchise, you pay continuing management service fees and you may have to agree to buy products from the franchisor. The franchise bargain usually includesrestrictionson how you can run the business. You might not be able to make changes to suit your local anaesthetic market. * The franchisor might goout of business. * Other franchisees could give the brand abad reputation, so the recruitment process needs to be thorough * You may find it difficult tosellyour franchise you can only sell it to someone approved by the franchisor. * All profits (a percentage of sales) are usually shared with the franchisor.