Page 10 - ilovepdf_merged (20) edition 66

Page 10 Jan-Feb, 2021
Page 10 October, 2008
There Are
What’s best, buying an existing business or
Generally 3
creating a startup? Challenges

h i s i s t h e w r o n g
for the SMEs
manager to continue working more flexible on your time if
approach! You should
the formula. An entrepreneur you are taking over a
Tfirst ask yourself: Are
may get bored if he is not business with a current
yo u a m a n a g e r o r a n challenged. operation.
entrepreneur? Two very
different abilities for two very
different challenges. For
Background / Experience Money
· Startup: An entrepreneur · Startup: Here comes the
doesn't necessarily need risk / reward million-dollar
management skills to get question. A startup can be
things going in a startup. They bootstrapped to burn as
are good figuring things out little cash as possible. If you
and living with uncertainty. get creative there are

· Existing business: A multiple ways to achieve
manager will thrive working your goals with not too
t h e b u s i n e s s . A n much cash.
example, I know I'm not a
entrepreneur with no · Existing business:
manager; I'm an entrepreneur.
previous management Buying a healthy business
experience will most likely will inevitably demand you
After years of struggling with
spoil the business. pay an overprice. The better
myself I now understand my
strengths and my weaknesses. the business opportunity
the higher the price tag and
I know I'm a terrible manager Risk lower the ROI. Be prepared
and that I must rely on people
· Startup: A startup is risky. to pay extra upfront vs a
that have extraordinary
You're burning cash and startup.
managing skills.
working endless hours
without any certainty of any
Here are a few differences you
should consider BEFORE future payout. Financing
· Existing business: Buying
making a decision.
an existing business is a lower
risk decision with a better
Passion / Purpose
· S t a r t u p : U s u a l l y prediction of future ROI.
entrepreneurs are driven
by the challenge to solve a
problem. They need to Time
· Startup: A startup is
believe in the product or
service. They own the unquestionably a full time · Startup: A startup
vision. job. You must commit all your demands angel investors to
time and attention to it.
· Existing business: If the get it up and running.
business is healthy it will be · Existing business: Buying a · Existing business: If the
running business may be
the perfect job for a Continue on pg 11

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