This article are provided for information purposes only, and are not intended as legal advice.


Why should you buy a business?

August 31st, 2009

If you do not always want to be a follower, you should buy a business. What are the advantages of owning your own business?

 

Advantages of buying a business

  • flexibility
  • get to work your own hours, as many or as few as you want
  • do not have to report to anyone
  • you get to keep what you earn instead of making money for other people
  • you can lead the business to where you want to take it rather than be restricted by the owner of the business you worked for
  • personal satisfaction of building something that belongs to you
  • have the ability to sell your business for money at a later date
  • get to pick the employees you want and not get stuck with people you did not want to hire because they were related to the owner of your former firm
  • financial freedom – assuming your business is successful

 

 

Disadvantages of owning your own business

  • must monitor cash flow
  • may be required to put additional money into business if short of cash flow
  • may not be able to pay yourself a salary if there is not enough money in the business
  • may be required to work long hours
  • you are ultimately responsible for everything
  • you are responsible for policies and procedures of the business
  • you have no guidance from anyone to dealing with problems
  • must arrange your own bank financing
  • must deal find good suppliers to deal with
  • every time you add more staff, it affects your profitability, therefore you may decide to work a few more extra hours rather than increase your overhead
  • as business grows, now have to concerned about succession plans
  • if no one is second in command, may find it hard to take a holiday
  • once you worked on your own for a long time ago, you will not be employable, most people do not want to hire a person who may not stay and go work for themselves again, it will be hard to work under someone again once you have had your own freedom

 

 

Although there may seem like a lot of negatives, the positives, once you build your business to a critical mass will far exceed the negatives of owning a business.


Filed under: Starting a business — Gary Landa @ 11:02 am


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