How to Start a New Business
When people intend to go into business there are several different options available. The main three options are starting a new business, purchasing an existing business and franchising. In this weeks learning we compared each of those options. I realized that starting a business is not as what I used to think of and that starting a new business is not always the best choice. Each of the three options has its own respective advantages and disadvantages.
Although starting a new business is often the most popular choice, it is not always the most appropriate one. Sometimes it may be more beneficial to purchase an existing business or chose franchising.
Use one of my friends as an example. My friend and her husband were both accountants, and after a few years office work, they felt tired and wanted change of life. So they planed to start a business. After careful evaluation they finally made a decision to enter a franchise. The couple migrated from China completed their bachelor study in Australia. When they decided to start their own business, they considered carefully the options and their own advantages and disadvantages. They are intelligent, educated and equipped with ample business and management knowledge. However their life experience and connections in this new country is limited. Although starting a new business from scratch will require much less launching capital, it also brings tremendous risk in selecting suppliers and developing customer pool. On the other hand, they have sufficient capital support from their families, so minimizing risk is their primary concern in their new business exploration.