Is it better to buy into an existing business or start one from scratch?

Is it better to buy into an existing business or start one from scratch?

"I enjoy reading this blog. It was recommended to me by a successful entrepreneur. I've read about the cash flow quadrant by Robert Kiyosaki. I understand the power of selling techniques and answering objections from the teachings of Brian Tracy. Currently, I am interested in the teachings of Napoleon Hill and Dale Carnegie. My question is connected with my future career goals.

"Is it better to buy into an existing business and start building from there? Or is it better to start one from scratch in the hope of franchising?"

- Johnny Nguyen
Portland, OR

Dear Johnny,

I can't give you a definitive answer to that question. It depends.

It depends on your personality. Are you a self-starter? Can you handle a lot of stress? If so, you have the emotional capacity to run your own business. If you are more timid - as I was when I went into business - it may be better to join an existing business.

It also depends on the business you intend to join. Is it profitable? Is it fast-growing? Does it have the sort of leadership that will encourage you to advance quickly? If so, it might be the right business for you.

It depends, too, on the industry. Is it an expanding industry? Or is it mature? Or past mature and declining? Since you are starting out, you have a choice. That's good. Choose an industry that is rising.

You have taken steps to educate yourself. That is a good thing. From what I can gather, you have learned some important principles about entrepreneurship and business management. But if you decide to go into your own business - or even if you want to join an existing business and get to the top quickly - you have to understand how entrepreneurial businesses grow. For that, I have to recommend Ready, Fire, Aim: Zero to $100 Million in No Time Flat, By Michael Masterson.

Ready, Fire, Aim will teach you:

• The four stages of entrepreneurial growth and the primary obstacles, challenges, and opportunities that each stage presents. Following this path is how I've taken businesses I've been involved in from $0 to $100+ million.

• The five "magic wands" of business genius that any ambitious person can - and must - learn to wield to be a successful entrepreneur.

• Why selling is your first priority (for a new or existing company), and the one thing you should never stop doing.

• How to generate innovative, tipping-point ideas on a regular basis. This is key to keeping your business growing.

• Why your Plan B is as important as your Plan A, and when and how to create it.

• The difference between pushers, thinkers, organizers, and sellers, and how to attract the ones you need for your business.

• And much more.

That's your answer. It depends on you. Judging from the energy in your writing, I'd say you are a good bet for success. Let us know how you do!