Two ways to approach a business opportunity



Two ways to approach a business opportunity When starting a business, an entrepreneur has two options. An entrepreneur will decide whether they want to buy an existing business or start their own from scratch. There are two ways to approach a new business.Before you make this decision, you need to know and understand the market. Know your strengths and weaknesses before deciding on your approach. Know what you have and what you don't have. Start a new business. You need to know whether consumers/clients are willing to spend their money on your product or the service you provide—a gap in the market. Do market research to find out if there is an unmet need or want that you can satisfy. There needs to be a clearly defined market need for the product or service you are considering.Starting a new business allows you to be creative, potential for growth as a business, and entrepreneur. It can be rewarding to the entrepreneur. This approach allows you to choose how you manage your business activities, the management style, and any changes you may wish to implement. It enables you to have full control. One aspect to consider is that you have to do market research on whether this business idea will work. You have almost complete control and need not be concerned with payment for usage of brand names and pictures and licences. It is entirely up to you how you intend promoting your business.When you run your own business, you decide how it's run, where it will be located, and the nature of the work required. Buy an existing business. Buying an existing business can be very expensive, and, there may be hidden costs that you are unaware of not to mention the risk of a bad reputation.You can buy a franchise or buy an existing business in your community. For example, buying a fish and chips shop in your community. People already know the place; there is an existing and established clientele; people already know the business, making things a lot easier for you as the new owner. McDonald's, KFC and Shoprite are examples of franchises. When you buy a franchise, it may be very costly and require large outlays of money to buy into the franchise. There are numerous rules and regulations that you need to abide by limiting creativity or change. There is little that you can change. However, you are buying into the name and the track record that is in place.It has less risk because the business has already been proven to be a success. You don't have the same freedom with a franchise that you would have when starting a business from scratch. You will have to sign a contract (franchise agreement in terms of a franchise). The franchise agreement outlines what you can and can't do in the business and could be restrictive as to what you can do and may be difficult for you to implement your ideas and strategies. The franchise agreement generally covers marketing, purchasing, advertising, fees, royalties payable, and HR. You have to buy a franchise to run it. Franchise costs and fees vary depending on the business you are considering.The diagram below indicates the differences between starting a business and buying an existing one Picking the Right One for YouTo summarise, all franchises are business opportunities, but not all business opportunities are franchises. Both of these approaches to making a business investment are suitable for those who don't have a unique product or service to bring to the marketplace, but still want to run a business. The most significant distinguishing factor between the two is how much support you desire.Franchise advantage and disadvantages ................
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