How To Start A Business
While others are just plain lucky to become successful businessmen, some may not just
have the same luck. While others got already ideas how to start, where to start
and when to start, some have the money but they do not know what business to invest in.
The following are options for people who do not know how to start.
1. Acquire an existing business
2. Franchise
3. Start a business by yourself
One advantage of acquiring a business is facility to enter the market. Major considerations for decision to acquire are the following:
1. Reasons for the sale - mismanagement? wrong place ? not profitable?
product obsolescence? no market?
2. Cost - Reasonable Sales price? Unpaid obligations? The price may be reasonable
but there may be claims that may arise in the future which were not disclosed by the
seller. Common businesses sold in the US are board and care facilities. There are consultants that may work with the buyers for assessment of the real values and some orientations regarding the legal requirements of operating this type of business where government
could be one of the clients. In the Philippines, common businesses sold are restaurants, beauty shops, gift shops and retail outlets.
3. Legal Issues such as leases that may expire; legal claims that may arise;
Laws that are for enactment in the near future that may affect operation in the future.
Franchising
What is good in franchising is there is already a market. Promotion is
centralized and backward integration activities are also handled by the
Franchiser.
The initial cost is high as well as the succeeding overhead since franchise fees may be required based on monthly or annual revenues.
Starting a Business
This is the riskiest and the most challenging among the three. Is there a need for business plan to see whether the project is feasible or not.
If the prospective investors are high profile, then there is a need for one to convince them, that the business proposal is financially profitable and viable.
If it is a small business, then the following may just be considered
FAQs (Frequently Asked Questions).
To be continued...
business plan,capital,franchise,investors
posted by cathy at 4:31 PM
