The idea of building a business from the ground up is often very exciting. It means you’re fully involved in every step of the process.
You have the freedom to choose the business name and location. While the early stages of a new business can be very demanding, in the long run you get to choose the hours you put in and you govern the overall nature and quality of your business.
You have full control over the products and services you want to offer, how much to charge, how to advertise and your method of doing business. You are able to develop operating systems that suit you, and if you want, you can hire and train staff according to your standards.
If you’re careful, starting a business from scratch can be less expensive than purchasing an existing business or buying a franchise business.
As expected, there are greater risks involved in starting a business from scratch and there is much more groundwork to be done.
Establishing your branding, sourcing finance, leasing or buying equipment, establishing relationships with suppliers, advertising campaigns – these can be enjoyable, but also complex, time consuming and may require special expertise.
Bear in mind that there are necessary expenses that you’ll need to pay up front, and it may take some time before your business begins to be profitable.
Because your business is brand new and the concept has yet to be proven, the perceived risks are higher. Therefore, securing finance may be more difficult.
YOUR ACTION PLAN
- Assess your own situation: how important it is to you to have 100% freedom and control? How much will it cost? Do you have the time and motivation to start from scratch?