What are the possible options?

• Develop an idea, obtain funding and establish a new company

• Buy an existing business and run it yourself

• Purchase a franchise which has already been established with a recognizable product, existing supply network and pre-established business procedures.

• Become an independent consultant

Fast fact

• Starting your own business may mean you will no longer be answering to a boss but you must answer to your customers .

Establishing a new company

Advantages

• Being your own boss

• Contributing extensive input into the process

• Taking your idea from inception to successful completion

Disadvantages

• Learning almost entirely on the job

• Working in relative isolation

• Carrying the full burden of responsibility

• Reduced personal time as a result of taking total responsibility for the business

Buying an existing business

Advantages

• Skip the startup stage of a business

• Limiting the need for initial investment

• Have an ongoing business relationship with lenders

• Earning a salary through ongoing cash flow

Disadvantages

• Lacking the satisfaction of creating your own business

• Possible risk of paying too much for the business

• Committing time to finding the right company to buy

Purchasing a franchise

Advantages

• Using a recognized name and trademark

• Benefits of standardized products or services

• No need to come up with a new business idea

• Benefits of proven business methods, concepts and approaches

• Using the benefits of the franchisor's previous track record

Disadvantages

• Limit in flexibility to products, operating budget and advertising budget

• Dealing with the need to protect the franchise locations

• Risk of having to deal with possible exaggeration of success by franchisor

Becoming an independent consultant

Advantages

• Limiting the capital investment and overhead expenses needed

• Flexibility for controlling your time

• Potential for high annual income

• No mandatory retirement age

• Eliminating the possibility of being caught up in company politics and procedural red tape

Disadvantages

• Dealing with competition

• Dealing with irregular cash flow

• Inability to clearly draw the line between work and leisure time

• Lack of a built-in support system

• Lack of a set schedule

• Having to depend on yourself to mediate or impose solutions

The need for a business plan

Regardless of which option is chosen, there is a need for creating a business plan

Advantages

• It is a financing tool - a business plan is needed in order to obtain financing from lenders

• Serves as a performance measuring tool - using the financial part as the foundation for an operating budget and assessing how the business sticks to it

• It is a planning document - strategies on paper (marketing, finance) help reduce mistakes in the real world

You may write your own business plan or have a professional write it for you for a fee.