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Buy a Franchise or Open Your Own Business
October 11, 2007
You’ve decided you are ready to enter the entrepreneurial world though it is difficult to decide whether you should start your own business or if you should buy a franchise opportunity. As many first-time business owners find out, there is a high failure rate for independent non-franchise businesses. Often, understanding the advantages and disadvantages for both options will help you to make the right decision for you and your situation.
- Advantages to starting your own business:
· You don’t have to follow anyone else’s rules.
· You don’t have to pay any royalty fees.
· When you have paid the money required to start your business and deducted your expenses—your profit is your profit.
· In some cases, you may have lower startup costs.
- Disadvantages to starting your own business:
· The financials needed for start-up will have to come from you and the support from others could be quite little.
· The business will run or could fail because of you. You will be the one to work the most hours, offer training to your employees, and build brand name recognition.
· You will have to form your own relationships with suppliers.
- Advantages to buying a franchise:
· You will receive training and support for you and your employees.
· You will have brand name recognition.
· You will have a guide for running your business that has already proven to be successful.
· You may have lower inventory prices, since most franchises have agreements with suppliers.
- Disadvantages to buying a franchise:
· You will have to adhere to rules set forth by the franchisor.
· The franchisor may choose not to renew your lease when the franchise agreement expires.
· The start-up costs are often higher than starting a new business, especially for big name brands.
Posted by Shanu Singh Guliani on October 11, 2007 | Comments (4)
