New Business

• Advantages:

  • Owner has freedom over the business' establishment
  • Owner's objectives can be matched more closely to the business
  • Owner can determine the pace of growth and change
  • Owner has flexibility for location, target market, produce range and a level of customer service.
  • No goodwill for the owner to pay.
  • Business can begin on a small scale if funds are limited.
• Disadvantages:

  • High risk and a measure of uncertainty.
  • Difficulty to secure finance without a previous business reputation
  • Time required to develop customer base, employ staff and develop lines of credit from suppliers
  • With a slow startup period and a lack of a profit
  • Difficulty to attract potential customers with new competition, espicailyly without a substantial amount of planning.