Good luck and good hunting for the business

Good luck and good hunting for the business of your dreams and enjoy the journey.

1. First decide what you like and don't like to do.

Sounds simple, but if you don't like cooking or working around food then why would buy a restaurant? Because you tried to justify it by saying it is really marketing and the food is only an end to the means? You can say that and part of it is true, but in the beginning you will BE working with food. So to begin with find something you like to do and gravitate in that area. Reflect on what you enjoy doing. Your hobbies. Do you enjoy working one on one with people? Old people, young people. Maybe you are tired of working with people and want to work in an indirect manner with people on a business to business level instead. This is probably one of the most crucial parts of the equation you need to address before you go any farther.

2. Where do you want to live?

Generally people want to work close to where they live. This is not always true, but for the most part it is. Are you willing to buy a business that is 1 to 2 hours away from your home and commute daily to it? Or do you want it to be across town within 5 minutes of your home? Or do you want something that involves traveling all over the country and enjoying a different setting every day?

In today's business with an individual's access to the internet, cell phones, web sites, asp systems on the internet, outsourcing of administrative duties and pcAnywhere you can be doing business literally around the world from your bedroom at home while never leaving home and having the perception of a large company. So your ability to reach a large audience of customers without leaving a geographic area is available to you. So if you want to live in a resort town and work across the world it is possible for you to do in today's economy.

3. How much money do you want to make?

Don't give the lame answer of a lot? Be definite. Determine how much you need and then add to that amount to get a realistic number. You have got to have a goal as to how much money you want to make before you set out to buy or get into a business. Before you get into a business you HAVE to know the dollar amount as to what you want to make, because without this number you will never be able to determine if the business can support that amount. All too many times people jump into a business not having a clue as to how much money the business can really generate and then after they get into the business they are disappointed that they have invested a large amount of time and resources only to find out the business could not support them.

That is why we want to know on average how much income a business will generate before we start or buy the business and then having that number we work backwards to see if it meets our requirements of being capable to support us in our financial needs.

4. What is your risk tolerance?

Are you willing to put everything you have on the line to get into business and sink or swim or are you only wanting to put your toe in the business and try it out to see if it is for you or not. If you are not one who has a high risk tolerance then maybe you should be looking at a franchise where they already have systems in place and if you follow the tried and true program of the franchise you should be successful. But keep in mind that the more you put into the business the more you are going to get out. So if you think you can only work 20 hours a week at a business instead of devoting 60 hours a week to knowing everything there is about your business and industry there will be a difference in the results you receive from the business. Plus, if you are concerned about not wanting to lose all of your money I would suggest that you start out small with a low investment business, because you will make mistakes and you will end up paying tuition to learn the business so you might as well start out with a small investment and work your way up to a larger business later.

5. Do you buy or start a business?

When offered the difference between the two I always suggest buying an operating business. Why? Because the day you purchase an operating business you have a cash flow. It may not be the greatest cash flow in the world, but you have a cash flow and with that cash flow you have a jump start with the business and all you will need to do is to concentrate on growing the business and cash flow. Where if you start out with a new business you have nothing. Only a hope and a dream and it will be exciting, but you have no cash flow.Personality tests

Buying a business is always a safer bet than starting a business. At least with buying a business the day you take the business over you have a cash flow and all you have to do is build the cash flow. Starting a business regardless how good of a franchise or idea it may be you are starting with zero and when you start at zero it can take a long time to get to breakeven let alone profitability. current mortgage interest rates

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