Question

Assignment - Entrepreneur Self-Assessment ASSIGNMEN The first step in starting a business is self-assessment. According to our text, what are some factors to consider when deciding whether to buy an existing business or start a new one?

Answer 1

When deciding whether to buy an existing business or start a new one, factors such as experience, financial considerations, and risks and rewards should be considered.

Step-by-step explanation:

When deciding whether to buy an existing business or start a new one, there are several factors to consider.

1. Experience and Expertise: If you have experience and expertise in a particular industry, it may be beneficial to start a new business in that field. On the other hand, if you lack experience, buying an existing business can provide you with a proven business model and established customer base.
2. Financial Considerations: Starting a new business can be costly, as you need to invest in equipment, inventory, marketing, and more. Alternatively, buying an existing business may require a larger upfront investment but can generate immediate cash flow.
3. Risks and Rewards: Starting a new business comes with more uncertainties and risks. However, it also offers the potential for higher rewards and the ability to shape the business according to your vision. Buying an existing business, on the other hand, may offer a more stable income but limited flexibility.

Ultimately, the decision between buying an existing business or starting a new one depends on your individual circumstances, goals, and preferences.