photo credit: Ahmed Rabea

The decision to extend the scope of your business by launching a startup must be a result of thoughtful consideration of various factors – financial, logistical or even emotional readiness. Launching a startup from an existing business can be as overwhelming as launching a startup from scratch, after all, your existing business reputation is at stake.

A common practice is to launch a startup relating to your existing business. For example: If you’re an existing subscription based social networking website for teens and you decide to ‘startup’ a social networking website for working moms.

The chief advantages of launching a startup from an existing running business are;

1. Familiarity with the whole ‘starting up process’ – chances that you already know some of the challenges and issues that may come up in the process.
2. An existing community for your product/service – knowledge of the industry and experience will help create a buzz for your new offering.
3. Funding will become easy (bootstrapping or external investment)
4. Expansion of revenue stream

For more information on the above idea visit:

http://thestartupist.com/2010/01/launching-a-startup-from-an-already-successful-business/