Private tradership or partnership?
Well over half of all Finnish companies are one-person enterprises. Starting a business alone has its advantages, but working with a partner can also be a good option.
The advantages of private tradership include being in charge of all decisions yourself as well as not having to share the profit with anyone else. However, you should consider the following
- Do you have the necessary skills, networks and capital to succeed on your own?
- Do you want to take on all the responsibility and work on your own?
- Where can you find a substitute or a spare-person if necessary?
The advantages of partnership on the other hand, is having the possibility to complement each other’s skills and attributes as well as being able to share the successes and concerns of entrepreneurship. However, you should consider the following
- Can you be sure that your cooperation will run smoothly in all situations?
- How will you share the company ownership and responsibilities with your business partner?
Look into your personal life situation when you decide on whether private tradership or partnership is more suitable for your.
Full-time entrepreneurship, as the name implies, is the entrepreneur’s main job and main source of income. As a full-time entrepreneur you are able and you should be fully invested in the operations of your company. Your business operations need to be profitable, as you have to make a living from the business.
All business can also be run as part-time. Starting a business as a part-time activity alongside paid work or study is recommended if you are unsure about the profitability of your business. Part-time entrepreneurship is a good way to test whether you will have enough customers, and to evaluate how the business will develop.
As a part-time entrepreneur, the financial risks may be lower, but even then you have to ensure you have enough income to cover the expenses.
Things to consider in part-time entrepreneurship:
- If you are employed, discuss your plans for becoming an entrepreneur with your employer. As an employee, you are not allowed to perform similar work as an entrepreneur.
- Find out how part-time entrepreneurship will affect your unemployment security. This is worth doing even if you are still employed.
- Price wisely. If you intend to expand your business into a full-time occupation, think carefully about the right price for your product or service. Do not put an excessively low price on your product or service, since price also creates an impression of the quality.
Acquiring an existing business idea and operating model, i.e. franchising, is an effective way to get started as an etrepreneur. A franchise agreement will provide you access to a pre-developed, market-tested and successful concept. As a franchisee, you will pay a membership fee based on your operating income, which often also covers training and various support services.
Read more about franchising and active franchisors in Finland from the website of Suomen Franchising Yhdistys.
You can also become an entrepreneur by acquiring an already operating company or a part of it. Company acquisitions are often called change of ownership. There are approximately 50 000 entrepreneurs that will retire in the coming years, and their profitable businesses are looking for someone to take over. According to statistics a change of ownership often brings the enterprise a boost for growth.
Acquiring a business that is up and running has its risks, but it offers the new entrepreneur a simple way to start. You can start the business operations directly since the clientele and turnover already exist – this option is worth looking into.
You will find companies for sale at