If you are a first-time entrepreneur, the lure of business ownership may have you thinking about starting your own business from scratch. Although it is possible to start a new business and succeed on your very first try, only 1 in 5 new businesses will make it past their five year anniversary.

Why is this the case? There are a number of reasons. The initial cost involved in a start-up is usually much more than anticipated, and this often leaves an owner cash-poor before the doors even open. Another common problem is overexpansion long before the business is ready, which can put a great deal of financial strain on the business. The most likely cause of start-up failure is the inexperience of the owner. If you have never run a business before, trying to put in place a location, equipment and furnishings, operating procedures, and an inventory can be really tough.

If you are intimidated by the chance of failure right out of the gate, there is another option for your road to entrepreneurship. You can buy an existing business. As a first-time business owner, this option means that your business comes ready-made. Businesses often come with an inventory, have a fully equipped and furnished location, and operating procedures that are successful. In many cases the current owner will agree to stay on for a time after the business is sold in order to give you training.

It is important to remember that any business venture comes with a certain amount of risk. As a prospective business start-up or potential business buyer, you will need to decide which road (and risks) you are willing to take on.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com