Starting from scratch

Betting on the Come

We've spent quite a bit of time talking about buying what someone else has created. There are a lot of reasons why buying an existing business may be the best choice for you. There are also reasons why it may not.

Sometimes there just isn't an existing business that does what you want to do, or its culture, market position, price, or other characteristics make it an undesirable acquisition. There may not be financing available. Or maybe you just really want to build your dream from the ground up.

Whatever the impetus, there are some steps you can and should take to minimize your risk and to establish a good foundation for the fledgling business.

Take the time to write a business plan. Aside from being a tool for obtaining financing, or investors, it imposes on the creator the discipline of fleshing out the dream, describing it in concrete terms, and assigning number values to the grand scheme. This process will help you determine if you need to obtain any sort of licensing in order to operate the proposed business, will help you establish pricing, and allow for a more objective view of the competitive landscape in which you intend to operate.

​