The choice of starting a new business or taking over an existing one is a real headache for almost every entrepreneur, even the most experienced. A business venture is indeed no small matter. In fact, both projects deserve careful consideration before deciding which one to choose. But what are the advantages of starting a business? And those of taking over? What do you need to know before you take the plunge?
What are the advantages of setting up a business?
Nowadays, more and more entrepreneurs are opting for the creation of a new company. Starting a business from scratch can indeed have many advantages. In terms of investment, for example, setting up a new business can save money on initial investment, unlike buying an existing business, which is usually available for sale due to financial difficulties. Moreover, if the takeover needs to be operational immediately, the creation will allow the entrepreneur to train himself little by little to master the management of his business according to its needs. The choice of business sectors is really wide and open.
What are the advantages of taking over an existing business?
Taking over an existing business also has advantages. Benefiting from an already operational structure, the buyer will be able to easily obtain financing from specialised organisations such as banks and financial partners. These organisations effectively finance the acquisition based on the company’s results and its last three balance sheets. In addition, the entrepreneur already has at his disposal a whole team that is already well established at work and can concentrate on the development of his business and the management of the company. Moreover, he will be accompanied by the transferor during the takeover of his business. This support will enable him to familiarise himself with the work and better understand his new function.
What do you need to know before you start?
Even if they are two very distinct activities, in any case, there are always certain points to be taken into consideration. Setting up or taking over a business always requires a professional approach and a great deal of caution to avoid any risk of failure. So before getting started, take a good look at your personal motivations. Why do you want to start a business? Is your project adapted to your expectations, skills or interests? Also think about analyzing the market and the competition before you start. What public support is also available for the project? When launching, always make sure you stick to your business plan. A business plan serves as a communication tool for the partners and will help you in all aspects of the project.