Step by Step Guide to Starting a Business

Buy a business or start your own?

Starting a business from scratch can be overwhelming for first time entrepreneurs. If you have a great business idea and are ready to work hard to build it from the ground up, then you may wish to start your own business. But if you want to hit the ground running and avoid some of the common start-up pitfalls, then buying an existing business or a successful franchise may be a better option for you.

Starting your own business

Benefits	Challenges
Complete freedom to design and manage the business according to your vision.	Can take a while until you are profitable.
Not bound by anyone else's rules, history or assets.	There is no guarantee of business success and a high rate of failure for new businesses.
Opportunity to carve out a new niche in the market.	More difficult to get financing because lenders or investors are taking a risk with your idea.
Can be less expensive than buying a successful business.

Buying an existing business or franchise

Benefits	Challenges
Benefit from the work that has already been done on building a brand, developing customer relationships, developing business processes and acquiring assets.	The upfront investment is often higher than if you were starting your own business.
Can start bringing in profits more quickly .	The previous owner and/or franchisor's business model and way of doing business may not be a perfect match with what you envision.
Easier to get financing because the business model is proven.

Learn more If you are considering buying a business, these documents will tell you what to watch out for and help guide you through the process.

• Buying a business
  What you need to know before purchasing an existing business.
• Franchising
  Learn more about buying a franchise as an option for starting a business.