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boundaries . Making business calls on company time or using your employer’s supplies or equipment for business purposes is a big no-no.
    • Be honest . Only you can assess your situation, but in many cases it’s best to be upfront with your boss about your sideline business. As long as it doesn’t interfere with your job, many bosses won’t mind—and you’ll gain by being honest rather than making them feel you have something to hide.
     

chapter 5
     
    BUILD IT OR BUY IT?
     
    Starting a Business vs. Buying One
     
     
     
     
     
    W hen most people think of starting a business, they think of beginning from scratch—developing your own idea and building the company from the ground up. But starting from scratch presents some distinct disadvantages, including the difficulty of building a customer base, marketing the new business, hiring employees and establishing cash flow ... all without a track record or reputation to go on.
    Some people know they want to own their own businesses but aren’t sure exactly what type of business to choose. If you fall into this category, or if you are worried about the difficulties involved in starting a business from the ground up, the good news is that there are other options: buying an existing business, buying a franchise or buying a business opportunity. Depending on your personality, skills and resources, these three methods of getting into business may offer significant advantages over starting from scratch.
     
    e-FYI
     
    If you’re looking for a business to buy or a broker to help you in your purchase, stop by bizbuysell.com . In addition to searching 47,000 businesses for sale and broker listings, you can order business valuation reports or research franchises.

Buying an Existing Business
     
    In most cases, buying an existing business is less risky than starting from scratch. When you buy a business, you take over an operation that’s already generating cash flow and profits. You have an established customer base and reputation as well as employees who are familiar with all aspects of the business. And you do not have to reinvent the wheel—setting up new procedures, systems and policies—since a successful formula for running the business has already been put in place.
    On the downside, buying a business is often more costly than starting from scratch. However, it’s often easier to get financing to buy an existing business than to start a new one. Bankers and investors generally feel more comfortable dealing with a business that already has a proven track record. In addition, buying a business may give you valuable legal rights, such as patents or copyrights, which can prove very profitable.
    Of course, there’s no such thing as a sure thing—and buying an existing business is no exception. If you’re not careful, you could get stuck with obsolete inventory, uncooperative employees or outdated distribution methods. To make sure you get the best deal when buying an existing business, take the following steps.

The Right Choice
     
    Buying the perfect business starts with choosing the right type of business for you. The best place to start is by looking in an industry you are familiar with and understand. Think long and hard about the types of businesses you are interested in and which are the best matches with your skills and experience. Also consider the size of business you are looking for, in terms of employees, number of locations and sales.
    Next, pinpoint the geographical area where you want to own a business. Assess the labor pool and costs of doing business in that area, including wages and taxes, to make sure they’re acceptable to you. Once you’ve cho sen a region and an industry to focus on, investigate every business in the area that meets your requirements. Start by looking in the local newspaper’s classified ad section under “Business Opportunities” or “Businesses for Sale.”
    “Play by the rules. But
be ferocious.”
    -PHILIP