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Small Business Resources > Advantages and Disadvantages of a Start-Up Business

Advantages and Disadvantages of a Start-Up Business

What is a start-up business? A business is considered a start-up if an entrepreneur begins a business based on a unique idea and takes it all the way from the planning stage to actually running the business. The business is usually thought of as still in the start-up stage until it begins to produce sufficient revenue or sales to cover the cost of supplies and operating costs.

Here are the advantages and disadvantages of a start-up business.

Advantages:
  • Creativity can play a big part in starting and operating the business.
  • There are no predetermined formulas or rules to follow; much less restrictive than a franchise or business opportunity purchase.
  • The owner is in control of all aspects of the business, including the location and what the operation is to look like.
  • The entrepreneur may draw from previous job experience, skills, and passion in establishing the business.
Disadvantages:
  • Start-up businesses are typically more costly and risky since there is no proven formula.
  • In order to obtain capital to fund the business, a lengthy detailed business plan must be put together.
  • All of the details of starting the business, including licenses, marketing, naming the business, finding product sources, etc. are the responsibility of the owner
Before entering the business world with your new concept you should consider buying an exisiting business that has proven results and an established customer base. There are many sites that list thousands of businesses for sale like BusinessMart.com. You should strongly consider searching for an already established business or an already established system.

If you do decide to start your own business be prepared to wait 12 months to see a profit. If you are in a position to do this, then starting your own business can be very rewarding.

About the Author
BusinessMart.com has become the fastest growing business for sale search engine, helping buyers and sellers of small businesses and franchises. BusinessMart.com has many resources to help you on your journey to start your own business, sell your existing business or open a franchise. BusinessMart.com has thousands of businesses for sale in the US and Canada.

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