Business Ideas – Compare The Various Methods of Business Start Up Available in Cyprus.
You may already have a good idea of how you are going to start-up your business, but it is still worth looking at the other options available in Cyprus before the plan is set in motion.
The options in detail:
We have compiled some information on each of the various business start-up methods available in Cyprus, including comments & advice, descriptions and the ‘pros and cons’.
Consider buying an existing business.
Regardless of it’s past performance, an existing business or franchise will, at the very least, have a history from which you will be able to make certain decisions. Even if the business was not profitable in the past, your strengths may lend themselves perfectly to turning it into a viable venture. Furthermore, you have the ability to verify what the business did in the past that resulted in the current status of the operation.
Consider buying a franchise.
Franchising is a method of starting a business which minimizes risk by emulating a tried and tested ‘business formula’. A contract is concluded between ‘the franchisor’ – (the organization that supplies the franchise) and ‘the franchisee’ – (the party that purchases the franchise).
The franchise package supplies most of the things that one needs to launch the business successfully:- training, license to use franchise name, customer base, supplies and raw materials, equipment, promotional material etc.
In addition to a set-up fee, the franchisor may charge an ongoing fee based on the percentage of sales or profits of the business.
The key point is that it should be a proven business system that is offered – not merely the right to sell a product or service.
Consider becoming an agent or a distributor
Becoming an agent is often the simplest and cheapest method of starting up in business in Cyprus.
There are many companies and organizations in Cyprus that have a product or service which they wish to market. Rather than employing a massive sales force to travel around Cyprus selling their product, many of them choose to offer agents or distributors a percentage of the order value of these products / services in return for sales.
This method gives you the opportunity to start earning cash quickly and without much fuss. It is also quite a flexible method of business and often can be done on a part time basis.
Consider starting from scratch on your own.
Starting a business from scratch can be the most rewarding method of business start-up.
Unlike Franchising or buying an existing business- you are totally on your own. Before you dive in at the deep end, there are plenty of things you can do to increase your chances of success e.g.. Getting to know your market and competition, creating a realistic business plan, constantly motivating yourself and your staff.
Obviously there will be plenty of issues and problems to deal with and many things to learn. Nothing is impossible, but things can get very difficult. When facing problems it is important to maintain a positive attitude, but be realistic. Deal with problems head-on. If you ‘bury your head in the sand’ the problem will get worse and the only person you can blame is yourself! Most successful entrepreneurs, both in Cyprus and around the world, found themselves in exceedingly hairy situations- taken the correct course of action- and survived.
There’s a lot of money to be made in Cyprus. You just need to perfect a system that enables you to:
- Understand & feed the desires of a group of people.
- Have as much Euros as possible going in to your bank account.
- Have as little money as possible coming out of your bank account.
- Have fun and enjoy yourself.
The Advantages:
- Initial investment level is decided by yourself or your ability to attract investment.
- Many organizations offer support / subsidies / funding.
- You have the ability to explore new business concepts / formulae.
- All post-tax profits are your own.
- No restrictions on your business methods.
- Control expansion to suit.
- Ability to adapt quickly to changing economic circumstances.
- Potential to sell, franchise or float on stock market once business has stabilized.
- Great sense of achievement.
The Disadvantages:
- Comparatively little ‘hands-on’ help and advice than other methods.
- Steep learning curve.
- May fall in love with the business and forget the point e.g. to make profit.
- Most business start-ups fail in their first year.
