What type of business to start

What type of business to start

So you’ve decided you want to start your own business. You need to think about what kind of business it will be. There will be tax implications depending on what type of business you choose as well as expenses.

One of the first steps in your decision-making is whether you will buy a business or start your own from scratch:

• Buying a business: This is a good idea if the type of business you want to buy has specialised equipment, needs a trained workforce or requires intellectual property that you can’t build-up overnight. Instead of starting from scratch, you can buy a business that is already profitable to manage.
• Starting your own business: If you have a new product you want to bring into the market, or want to start a business that is relatively simple and inexpensive to start from scratch, then it would save you money to start your own business instead of buying an established business. When you start a business, always do so with the aim of selling it one day when you want to retire or move on, or franchising it.
• Franchising: You could invest into a franchise. This is when you have a head office that provides its franchisees with a solid business plan, marketing collateral, promotion and branding, stock, equipment and supplies. The franchisee can then focus on running the business, using a guaranteed business model.
• Part-time business: You may want to start a business but feel like you need to gain more experience before you leave your paying job and launch into it. The best part-time business to start is one that involves your hobbies. For example, if you like to bake, you can market your business and bake in your spare time to make extra cash. You will learn a lot about business if you do this.
• Family business: There are pros and cons when it comes to working in a family business. It’s a great way to get experience and you’ll get coached by people who love you and want the best for you. But it’s not everyone’s cup of tea so you need to think about all your options and decide what to do.
• Home business: Starting a business doesn’t have to involve heavy machinery, big warehouses and office space. You could have all the skills you need right now to start a home business. You can become a freelancer and do what you’ve been trained to do for different companies. You can consult to companies, providing them with advice on your industry or field of study. Or you can make things at home, for example, dressmaking, baking and event management.

Whatever business you choose to pursue, know that it’s up to you to make or break it. Starting a business is a big decision but if you commit yourself to making it work, you are half way to success.