Whether you’re a seasoned entrepreneur or business person or looking to take your first plunge into the world of business, there is one question you need to ask yourself – do you take a leap of faith and start a business from scratch? Or do you minimize your overall risks and buy an existing business?
It can be a tricky choice to make. Both options have their own sets of pros and cons, and the smart thing to do would be to research both options before deciding which path is going to suit what you need the best.
Let’s look at what some of the pros and cons of both these options are going to be if you’re considering either one of these as your next venture:
First, let’s look at the pros. The most obvious one is of course that when you choose to start a business from scratch, you get to develop your own idea from the beginning. You create, shape, build and mold this idea right from the start. Besides, you take pride as you watch it grow and flourish into something successful.
Well, you get to pursue a business based on your interest. Additionally, you get to hire people who you deem will be a good fit for the business. Starting from the ground up also means you get to learn each aspect of your business. And you can’t deny that while being your own boss does involve a lot of hard work, it does feel good not to work for someone else.
Now for the cons. The cons when you choose to start a business from scratch is that you should keep in mind you’ll be taking a financial risk. In the beginning, you’re also going to have to tackle every single task by yourself, including the menial ones. And finding the right people to fit the roles can be a very challenging and time-consuming task.
Building a customer base for a brand-new business, getting steady cash flow, managing the marketing and building a reputation is a lot of hard more and much more challenging. You’re going to have to be willing to invest a lot of time and long hours into this venture.
The pros of taking over an existing operation are that it’s already generating a steady cash flow stream and profits. An existing business already has employees, an established customer base and a reputation. It is also much easier to get financing for an existing business than a fresh one with no track record.
The cons of buying an existing business would be that your investment costs are going to be considerably high. A little high compared to if you were to start from scratch. You also run the risk of being saddled with an obsolete inventory. Or a business that isn’t making quite as much profit as it should. You need more research to ensure that you’re making the right choice before deciding on a sale.
Whether you decide to take over a business or begin one from scratch, the business world is unlike any job you’re ever had. While it may be brimming with opportunity and possibilities, it also comes with its own challenged you to need to be prepared for.
3E Accounting Pte Ltd, Singapore – Corporate Service Provider has the panel of experts you need to help you navigate all the important decisions you need to make when it comes to doing business. Contact our panel of experts today to find out more.
If you are interested in buying a business in Singapore, read more from a local corporate service provider in Singapore who can assist you along the way.