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After collecting this additional information and reconsidering your list, narrow the possibilities.
Get Advice
One of the common errors in choosing a business is not asking for help. This is an important way to gather information to complete the selection process:
Talk with people in the same or a similar business: Businesses located outside of the area you are considering locating your business will usually be flattered and willing to share their experience and advice. The local chamber of commerce or other business association meetings may provide access to business owners that you can talk to.
Work for someone else for a while: A time-honored way of learning a business is to work in a similar business as an employee. Not only will you be getting on-the-job training, but you'll be getting a paycheck, and will be avoiding overhead expenses. When scouting out potential "employer-trainers," it's best to look for one that is successful and well run.
Ask for professional advice: There are four professionals you should get to know early in your business planning: an attorney, accountant, marketing consultant, and banker. Share your plans with them. They may point out factors you hadn't yet considered.
Share your thoughts with your family, friends, and associates: They may come up with considerations that may discourage you from one idea, or they may offer real encouragement for pursuing another idea. Having the support and involvement of those close to you can be an added benefit.
Common Entry Strategies
Now that you know what business you want to start, you'll need to choose how to start it. Some common entry strategies are:
Start a new business: This option permits you the most freedom and the satisfaction of knowing you did it all yourself. Some opportunities which might prompt this choice are: a new invention, a spin-off of an existing product or service, turning a hobby into a business, awareness of a customer ready to buy your product, unfulfilled market need, expansion of a part-time activity or simply chance.
Buy an existing business: By buying an existing business you can avoid lead time required to launch the business, understand expected income and expenses; acquire an existing customer base, and take hold of an established image. Most successful acquisitions are accomplished by knowledgeable, adequately-financed business people. When acquiring a company, it's important to understand the numerous tax and financial maneuverings available for acquiring and financially restructuring an existing company.
Purchase a franchise business: This option allows you to "purchase" a known trademark for delivery of products or services under an established system. You will usually pay a franchise fee, ongoing royalties, and the costs of getting into the franchise. While it can be comforting to have ongoing support services, collective buying and advertising power, and market research, not every franchise is a guarantee of success. Many small, less expensive franchises are under-funded, lack a good training program, and fail to provide the necessary support. Many of the large, well-known franchises are too costly for many beginning entrepreneurs. This can be an attractive starting point but be sure to check out the franchise thoroughly.
Next
Once you've narrowed down and refined your idea, you need to decide if this business will be successful.
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