So, you want to be your own boss? Studies that suggest the under 25’s group have a growing desire to be self employed. How much do we know about the routes to self employment, the risks and the rewards?
Tip Of The Iceberg
On the surface, setting your own timescales, managing your own workload and zero micro managing can sound like the dream, but is it?
Then there are the costs, buying an established business can come with a hefty price tag. It is possible to buy a struggling business at a cut price, thus reducing your initial outlay.
The key here is ‘initial’, if you choose this route, you’ll need to have deep pockets or investors who can bank roll you while you hopefully turn the business around.
Unlike buying an established business, where you may have a handover period with the owner, and the time to complete due diligence, acquiring a struggling business via a liquidator could mean that you inherit a world of unknown issues.
This can leave you exposed, with little room for error and a very steep learning curve. You could find yourself left with demoralised staff and disgruntled suppliers.
This strategy is risky and therefore not for the faint hearted. If you need a quick return on your investment, you should avoid a struggling business. It is advisable to align yourself with a business partner or network of professionals who have experience turning failing businesses around.
To Buy Or Not To Buy
So, how do you decide between buying and starting up, failing and established?
You need to consider exactly what it is you want to do – if building something from scratch lights a fire in you, then go for it. If you have a less specific business plan, you may be best suited to buying an established business. You can find the business that fits you best and comes with all the nuts and bolts. Then there are the natural entrepreneurs, the people who relish a challenge, those who are unflappable and have the vision to turn carbon into diamonds.
Above all, the opportunity should centre around your passion.
If You Love What You Do, You’ll Never Work A Day In Your Life
Are you looking to buy a business, or start up? You’ll need to get your finances in order, Avanti (08000) 388 799 can help you with the necessary financial records required, call us today to see how we can help you! Modern Accountants with traditional values.