The document outlines three ways to start a business: starting anew, buying an existing business, or franchising. Buying an existing business has advantages such as established operations and location, but also comes with risks like hidden problems and outdated assets. Starting a new business offers independence and creativity but entails facing untested challenges and resource limitations.

2. BUSINESS
VENTURE
HOW TO
START-UP A
BUSINESS

3. Ways of Business Startup
3 ways to start business:
– Start,
– Buy or
– Franchise

4. Buying Existing Business
Advantages
– Successful existing business may continue to be
successful
– Existing business may already have the best location
– Employees and Suppliers are established
– Equipment is installed and productive capacity is known
– Inventories are in place and trade credits are established
– Business hits the ground - running
– New owner can learn from experience of previous owners
– It is a bargain

5. Buying Existing Business
Disadvantages
– Realities may be disguised. Real reasons are not stated
– ill will might have been created by the previous owner
– Employees inherited may not be suitable
– Location might have become un-satisfactory
– Equipment and Facilities may be obsolete and inefficient
– Change and Innovation are difficult to implement
– Inventory may be outdated or obsolete
– Accounts receivable may be worse than the face value
– Business may be over priced

6. Starting New
– Advantages
– Independence/ Opportunity to be creative and implement ideas
in your own way
– Disadvantages
– Untested Waters
– No formal support/ backup in Marketing
– Must address to all startup resources and factors 5M + I
– Generally the level is Small – Medium
– External Finance is comparatively difficult
– Generally needs greater effort - may be as a tradeoff for lesser
investment