Many people today are stuck in the corporate grind. Chances are, they have bene at it for many years. For many would-be entrepreneurs, the dream of owing their own business becomes like a beating pulse. Over the years, that beat becomes louder and louder. At some point, they think to themselves, “How To Start A Business” for myself? This will give me the freedom I need. I can become my own boss and pay myself what I want. I can fire employees that I disagree with, unlike my co-workers. While this may seem like a worthwhile goal, it should not come without careful planning. Without careful planning, I have seen many life savings go down the drain. How do you, as an entrepreneur avoid this?
There are generally three choices you can make. The first is to start a business from scratch. The second is to become a franchisee. The third is to buy an existing business. All three have their pluses and minuses. If you start a business from scratch, you will have little to no revenue coming in for the first year or so. This can pile up operating losses. You must have a cash pile to avoid going out of business. Many entrepreneurs underestimate their expenses and find themselves underfunded. The second option is to become a franchisee. This is basically buying a “business in a box”. While you will give up some freedoms in the form of restrictions of what you can and can’t do, the franchise likely has the business plan mapped out. You will also pay five percent to twelve percent off the top of your revenues, in the form of royalties and advertising fees going forward. The third option is to buy an existing business. While this may or may not be the most expensive route, you gain instant cash flow from the existing business and the model has proven itself to work. If you want to know how to start a business, research all of these options carefully before making a decision or consult with your local business broker.