The 3 Basic Ways to Get Into Your Own Business

Joel Libava
Mon, 15 Sep 2008 10:10:00 +0000

Going into business for yourself, huh? You can do it one of three ways.

3 ways to start your own business

1. Start a business from scratch

A dude that built himself a 66,000 square foot house successfully started a business from scratch. Do you have your own idea for a service or product? This is probably the hardest way to becoming an entrepreneur, yet it offers the biggest potential.

Starting a business from scratch also makes it the toughest way to obtain financing. Banks like to see a history, and may not be too willing to loan you money for an unproven business model.

2. Buy an existing business

If you decide to buy an existing business, the key word to remember here is patience. The process could take six to nine months, depending on how bad the lawyers and accountants want to wrestle with each other.

Things like waiting for the seller to release his or her financials, settling on the purchase price, obtaining financing (especially if the finances do not look great on paper!), and hoping the seller still wants to sell after it is all said and done, are just of a few of the hurdles that may come up.

Now, having shared those positive and uplifting words of encouragement regarding the purchase of somebody else's business, it's entirely possible that you may find it a real nice "touchy-feely" experience. After all, businesses are bought and sold every day.

More articles from AllBusiness.com:

You Don’t Have to Write a Business Plan from Scratch

Should You Start Up or Buy Your New Business? 12 Pros and Cons

Creating an Effective Collection Policy

The 7 Design Secrets of an Irresistible Banner Ad

3. Invest in a franchise

Buying a franchise could be a way to get started on your dream faster. There is, of course, a system, a marketing and advertising plan, formal training, infrastructure, and other like-minded people (hopefully just like you) to talk with and learn from.

Of course it could turn out to be a total disaster if it is the wrong franchise for you, or if you chose it for the wrong reasons. Franchising is not perfect—far from it. The internet is very active with plenty of war stories about less than ethical franchise company executives.

If you choose a franchise that matches your main personality traits, and the startup costs are a nice, conservative investment amount for you, then you have a better shot at being successful. Just don't overlook your due diligence. That is where information is power.

Starting a business—which option is best for you?

These brief summaries of the three ways to get into your own business are a good start if you are trying to figure out which startup option is the right one for you.

RELATED: Want to Start a Business? Maybe You Should Buy a Franchise

About the Author

Joel Libava is a Cleveland, Ohio-based franchise consultant, blogger, and marketer. Learn more about Joel at www.thefranchiseking.com