A start up business is any business which has been created from an idea and has no history of sales, failure or success. This could be a clone of someone else’s business however this is the first business of this type created by this entrepreneur.
Entrepreneur is a person who is a risk taker. He/she is willing to place a large bet on the success of their idea. They could put a lot of money into the business or just time. They are willing to try a new idea even though others think that it may not succeed.
Advantages of a start up
- you are your own boss
- freedom for creativity
- no constraints by bosses, you are the boss
- ability to take risks and enjoy rewards of success
- no rules to follow
- can change direction or strategy of business on a moments notice
- owner controls all aspects of business
- if you started working from your home, you may have low overhead and low costs to start a business
- depending on business, capital infusion may be minimal
- business may have more sweat equity than actual cash equity
- in many businesses, the manager hires people less competent than themselves because they do not want to hire a person who can take over their position. In your own business, you can hire the best person for the job that you can afford and not worry about them replacing you since you are the boss
- if you give some key staff members equity in the business, you may get people to work harder for your towards a common goal – success
- for ideas for a start up, look at lists of businesses for sale which can be found on thebusinessplace.com