To begin your entrepreneurship journey, you have two options. First, you can seek businesses for sale and buy one. This approach has several ups and downs. The good side is that you get ready customers and suppliers which offers you an opportunity to start earning returns immediately. However, the bad thing about this approach is that you inherit all the negative aspects of the business.
The second approach is developing a business idea and implementing it. As an entrepreneur, you may be in confusion on the best way to become a business owner. This article presents you with information comparing business idea implementation and buying a business as a new entrepreneur.
Implementing a business idea as a way to entrepreneurship
As you might be aware, entrepreneurship is about coming up with a business idea or identifying a gap in the market and taking steps to fill it. When starting out, you can try to figure out what the customers want, and it is not available. For instance, Uber was established to solve the problem of finding a cab. Facebook was an innovation to handle socialization and communication. As a business person, you can come up with innovations to solve challenges. This can put you in the limelight and attract more customers.
- Challenges and shortcomings
Starting a new business through implementing an idea can be a hard tackle. Here, you need a considerable amount of capital. Notably, statistics show that 75% of startups fail. Hence, if you do not have adequate funds, transforming an idea into an acceptable business venture can only remain as an unmet dream. In this regard, this option is suitable when you have a desire to explore and have the energy to thrive in the plight of fail.
Buying a business for sale
For those who are not ready to go through the startup challenges journey, purchasing an operational business can be a good idea. Here, you purchase it and start earning returns immediately since you inherit its customers and suppliers. Also, you don’t struggle to find the right candidates for particular positions unless the current employees are not delivering desired results.
- Challenges and shortcomings:
When you buy a business, you inherit both its positive and negative aspects. You will not change the brand reputation or product quality immediately. If they were terrible, that’s what you will receive. Also, you lack an opportunity to learn and gain experiences as a new entrepreneur. Nevertheless, if you want to earn immediate returns, buying a business is a good idea.