You Can Buy an Existing Business, Go for a Franchise or Start a Business from Scratch
We look at how to generate small business ideas and find small business opportunities. One of the first questions facing an entrepreneur is what business to start. How to answer that question is the topic of this article.
You can start a business broadly in three ways:
- Purchase an existing business
- Become a franchisee under a reputed franchise network
- Start a completely new business
Purchasing an Existing Business
Don’t just buy just any business that is available for sale.
First, determine the kind of business that is suited to your background and resources. Jumping into something about which you have absolutely no idea is not a good strategy.
Next, look around for existing units engaged in your selected business. Newspaper ads, real estate brokers and friends and colleagues are potential sources of information about businesses for sale.
Before taking a decision, research the business unit you think of buying. Check its records, talk to its customers, discuss with professional accountants and banks and seek their help in checking liabilities that the business unit might have incurred. Unless you do this kind of “due diligence” check, you might find yourself burdened with something you had not bargained for.
Becoming a Franchisee
There are thousands of franchises engaged in numerous businesses. You can choose to become a franchisee in a business you are interested in. You will then get the benefits of the business model, promotional strategy, operating procedures and brand recognition already developed and tested by the franchiser.
You can find franchisers and franchise related help at sites like the Franchise Registry.
Starting a Completely New Business
You can proceed in different ways. Some strategies are indicated below.
You might have some hobby. You know what inputs are needed to pursue the hobby successfully. You have accumulated considerable experience enabling you to provide tips and tricks.
Can this be converted into a business? For example, you can examine the possibilities of:
- Creating a website of tips and tricks that also sells the material inputs needed for the hobby. You can become an affiliate of merchants who sell these inputs.
- Putting up a sales site that sells the products (if any) you create as a hobby
- Writing a book that helps other hobbyists to take up and successfully pursue the hobby
You might have developed a particular skill during your career. For example, you might have been working as a company salesperson or a computer programmer for several years. You might also have built up valuable contacts during this period.
You can examine the possibility of becoming an independent salesperson or programmer and developing the venture into a sizable marketing or software development organization.
Become a Sub Contractor
You have gained specific experience in producing a particular component while working in a large manufacturing company. You also have contacts with relevant decision makers in the company. Why not use these factors to get the company outsource the component production to you? You would then have a ready market for your independent production venture.
Once you are established, you can even expand your facilities and supply to other companies.
Get Advice and Help
Whatever business you plan to take up, you can benefit from the advice and help available at small business support agencies like Small Business Administration. You will get best results if you go to these agencies with some definite proposal after selecting a business.
Affiliate Home Based Business
A home based business as an affiliate of a merchant is one popular business model. This model attracts those businesspersons who do not have a product or service of their own to sell.
Buying & Selling on EBay
Buying and selling on eBay has become a business by itself, as against just supplementing your existing business or income. How do you tap this business opportunity?
Drop shipping is used by manufacturers and wholesalers as a marketing technique to sell their products at little cost. For the retail sellers, drop shipping is a low cost option to sell products without stocking merchandise.
Some studies report that while a franchise business has an 80 per cent chance to succeed, the same percentage of independent businesses fail. While the percentages might vary, franchise businesses definitely have better success potential.
Manufacturing businesses produce wealth by adding value to raw materials. However, the reverse side is that much of the manufacturing also pollutes the environment. Hazardous wastes, global warming and occupational diseases degrade the quality of life.
Starting a restaurant is a dream for many, even for some in high paying positions. Combining a business with doing something that you like – cooking and eating good food – might explain this urge.
Starting a retail store is not as simple as stocking some merchandise in the first available building and sitting there waiting for customers. Location, location, location is the first success key for traditional brick and mortar retail stores. What are the other retail success factors?
Data Recovery Services
With the proliferation of computers and computer networks in business, the demand for various incidental services is increasing. Data recovery service is one such incidental service. If you can organize the necessary facilities and technical know-how, data recovery services is a good business opportunity.