How to Start a Business from Scratch (continues...)

The start a business from scratch Cons:

• Competition from existing businesses with established market share.
• Comparatively little 'hands-on' help and advice.
• Steep learning curve.
• May fall in love with the business and forget the point e.g. to make a profit.
• You lack the skills to manage a business successfully.
• Difficulty in attracting staff to an unknown and unproven business.
• Additional professional costs in establishing the business entity.
• Difficulty in attracting business finance.

One of the major advantages of starting a business from scratch is that the initial investment can been substantially less than if you were to buy a business. However, despite the initial capital outlay being small, more often than not, a new business has to have additional infusions of cash for several months if not years before any income is realized. An established business, on the other hand,  will hopefully provide income the first day it is taken over.

Before you consider starting a business from scratch, ask yourself if you are willing to invest your own money, develop your own systems and live with uncertainty long enough for your client base to recognize a need for your product or services. And determine whether you have the skills required to manage a business as well as the staff effectively.