Initial Decisions: Starting Versus Buying a Business Mr Kuhn

Personal Values and Goals Owning a business is a major opportunity, decision, and risk The decision of whether to build or buy a business is easier when one considers their own values and goals Values defines who you are and what shapes your attitude, values, and priorities Core Values stick with you over time and will heavily influence your decision in life and business What is most important to you in life? Balance, compassion, competition, environmentalism, generosity, hard work, independence, physical appearance, power, relationships, spirituality, ect….

Starting Your Own Business: Pros Freedom to try something new Create your own business image Financial independence Pride Flexible Hours Potential for less hours

Starting Your Own Business: Cons High start-up costs Little to no income at start (Patience) Time Consuming Long Hours Possibility of Failure (Risk) Stress Financial Uncertainty

Starting Your Own Business: Questions to Consider Do I have the motivation to start from nothing? Does the business align with my personality, abilities, values, and goals? Do I have sufficient knowledge of basic operations to undertake a business? Do I have the right partners to help me with my business? Do I have enough financial resources to start from scratch? Am I willing to accept risk?

Starting Your Own Business: What You Must Do Test your concept in the market. Is it feasible? Is there a customer base? Location. Will it be physical or online? Prepare a business plan Professional advisors (accountant, lawyer, insurance, ect) Purchas equipment if necessary Hire employees Find suppliers Advertise

Buying an Existing Business: Pros Business is established Clients Fully trained staff Immediate profits Existing advertising Flexible schedule Room for growth

Buying an Existing Business: Cons Cost of purchase Transfer fees Potential lawsuits Long Hours Risk Loss of freedom

What About a Franchise? A franchise is a legal agreement to begin a business under the name of a recognised company The most important advantage of a franchise is the franchisee does not incur the risks associated with starting a new business Buyers of a franchise typically pay a fee and an annual royalty on sales (typically 3-8%) The franchisor is selling planning, management, and its name brand Be for buying make sure you know all costs and limitations involved (Avoid market saturation)

Buying an Existing Business: Questions to Ask Is the business interesting to me and others? Why is the owner selling? Personal reasons or industry decline? Check financial statements! Don’t rely on what the seller tells you Is the market saturated? If a franchise, are the best locations taken

Movie Stocks: Learning When to Buy In this course you will not have the money to buy a existing company or franchise We will use movie stocks to “buy” what you are familiar with, without having to put in your own money Go to HSX.com and make an account Go to community > leagues Click browse and search “Entrepreneur Class” (include capitals) Join