The advantages and disadvantages of starting a business from scratch
When starting a business from scratch, you have no worry on any negative impact or unhappy customers, or bad debt credit from prior mistake to overcome, as if you compare with purchasing an existing business. Furthermore, you may enjoy your creation of a success business and pride of ownership. However, the risk of failure is higher for a startup because there are more uncertainties and variables regarding the market acceptance to your product.
The common types of new businesses and characteristics of fast-growth companies
New businesses include E-businesses, home-based businesses and part-time businesses have completely changed the small business landscape. Some of the small businesses are hyper growth companies. These companies are generally led by teams of seasoned people with prior experiences or entrepreneurial spirit people who turn their idea into a new business.
Evaluating potential startups and ideas
When a brand new product idea being introduce, you may have a great chance of success if people want and will buy your product. As the product progresses through the product life cycle, the window of opportunity closes, as more competition enters the market and it impacts the pricing and the profit margin may drop. Most people get their idea from prior employment or their hobbies turn into business or someone suggestions. Sometimes business ideas occur by chance.
Getting started
It is a big challenge to turn your dream into reality. You need to carefully plan and consider the costs of starting a new business, and they must analyze the market and competitive landscape to ensure the competitive advantage really exist and your product can really sell. Next, customer service is the basis for establishing a long-term relationship with customers. Startups have legal requirements. Entrepreneurs must file the business name with the state of origin and obtain local business licenses and any industry-specific permits required. They must also apply for a tax identification number to collect and process sales taxes.
My View: I founded a business from scratch many years ago. I started the business because I thought about creating wealth and reaching personal satisfaction. Based on my past experience, there are several important pros and cons considerations for starting a successful business. Besides of all the key elements mentioned in the textbook, I would say the #1 most essential for me to start a business is not money but to have a right partner and a right team from the beginning. If you have a right team, many obstacles can be gradually resolved over time.
