Buyer Resources

Advantages and Disadvantages of a Start-Up Business

Considering a Start Up Business

Now that you have decided to begin the process of creating a new start-up business, it is time to look in more depth at the process and the potential pitfalls of launching a start-up business.

Starting a business in any way at all is rarely entirely straight forward, but being aware of the potential problems will enable you to plan and to ensure that you are prepared for almost any event.

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Main Differences between Start-Ups and Going Concern Businesses

When setting up a business, a key decision that you will have to make is whether you are going to buy a going concern or create your own start-up.

By definition, a going concern is an existing business that has proven to be solvent over a certain trading period. A start-up involves creating a new business that does not have a trading history and you will have to start from scratch. In the case of the latter, you will have no history upon which to base your future projections in terms of income and expenditure and no client base to work with.

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Are you thinking about buying a certain type of business? Are you passionate and confident about the adventure you are about to get yourself into? If the answer to these questions is ‘yes’, then you have a good chance of making your future business your pride and joy.

Having decided on the business that is likely to prove successful to you, all you need now is to get a professional business appraisal. This assessment will guide you along your trip and help you turn your aspirations into a success story.

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Introduction to Economic Factors

As well as having the necessary enthusiasm and skill base to set up your chosen business, it is also imperative that the economic factors are on your side if the venture is to be a success. Even if financial gain is not your primary reason for buying a business, it is still important that your chosen business is, at the very least, solvent.

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Introduction to Personal Motives and Skills

This is going to be your business and, therefore, it is vital that it accurately reflects your own personal skills and motivation. Be completely honest with yourself about what you know, the skills you possess and what you can put into a new business venture.

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Selecting a Business

The decision to start a business is a huge moment in anyone’s life but, equally, it is not something that should be undertaken lightly. In practice, your decision regarding what type of business venture to embark upon will be fundamental to your success. Whether you are planning to set up a business from scratch or to purchase a going concern, it is still crucial that you choose the right type of business for your personal and professional skills.

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Essential Documents for Starting a Business

Although starting a business from scratch may be seen as a less document intensive process, there are still a large number of considerations involved, in terms of documentation checklists.

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