What type of entrepreneur are you aspiring to be? Nowadays, there is always some kind of hype about one startup or another in the media.
Yes, startups are glamorous, exciting, hot… But there is a question for those wanting to enter the amazing world of entrepreneurship… is setting up a new startup the best way to go?
What about the option of buying an existing business? Perhaps the first place to look for an answer to this kind of question is within yourself.
What kind of business person are you? What type of entrepreneur are you? Below are some character types to consider:
#1). Risky business
These business people want a lot of success from a great idea and are willing to take risks to get it. If they make it big – super! If they lose their shirt, they scrape together some capital and try again – no biggie.
#2). Slow and steady
This business person prefers to build his or her business little by little without too much risk-taking. He or she wants a good living but doesn’t mind if it takes time to achieve.
#3). All in moderation
Balance is the name of the game here. These people are willing to take some calculated risk-taking. They have the patience to build up the business over time, but not too slowly.
#4). DIY enthusiast
These entrepreneurs want to do everything themselves. They have this feeling that if they didn’t do it, it probably wasn’t done as well as it could have been.
#5). On a shoestring
This business person has a great idea but a tight budget. He or she wants to start small and expand by putting a part of the profits back into the business.
So what type of entrepreneur are you?
As mentioned earlier, some entrepreneurs that are into Risky Business will not often favour an existing startup.
The proven track record of an existing business usually does not offer the financial potential they are looking for.
In addition, many of these business people are looking at carving out a new market niche. Thus, most existing businesses will not match their vision.
For Slow and Steady entrepreneurs, existing businesses they usually favour generally have established suppliers and clients. There is a good financial history which can be used to predict likely future revenue.
As a result, their risk is less than a new venture. For these reasons, buying an existing business online is a good match for Slow and Steady business people as well as All in Moderation Entrepreneurs.
However, entrepreneurs that favour All in Moderation will lean towards starting their own business. Of course, it is possible to “makeover” an existing business. In fact, that is one of the keys to turning a good existing enterprise into a great company.
Also, DIY Enthusiasts are looking for the freedom to do it all themselves from the ground up. This kind of people doesn’t like to get involved in already established businesses. They just want to start afresh and focus on growing their business. Buying an existing business with its customer base and only to strip it all away to begin anew doesn’t make a good business sense to them.
However, On A Shoestring Entrepreneurs can swing both ways. On the one hand, starting up is often less expensive than purchasing an existing business – good for someone with a small budget. On the other hand, banks and other business finance facilitators or lenders are more likely to lend or invest in businesses that have solid proof of their rate of return.
Of course, there are many other financial and logistical factors to take into consideration. However, it is equally important, if not more so, to include the business personality in the equation. After all, it’s this person who is running the show.