So you have decided to become a business owner now you have a couple options. You can buy a franchise or build a company from the ground up. each approach has its pros and cons.

There are many franchises available to buy. Many companies you use are probably franchises, from restaurants to cleaning services. A key benefit in buying into a franchise is that you essentially get a readymade business. A franchise basically gives you everything you need with a well recognized name to draw in customers. There are many different franchises available. Some will give you the business name, equipment and everything you need for start up, others only give you the basics and you still have to buy or lease a location, purchase equipment and the inventory you will need.

The two main downsides of buying a franchise however are that they are typically inflexible in terms to making it your own, and you must pay for the privilege up front. Visit the Key Mergers website for more information or if you would like to f you would like to buy a business or even to sell one.

Starting from zero and building a you very own company however means that you can grow the business organically over time, you can limit your initial outlay and you can be as creative with the direction of your business as you like. Depending on how novel your new enterprise is, it is possible that your will have a steep testing curve and will have to make all of your own connections.

The bottom line is, the decision whether to buy a franchise or go it alone are multi-dimensional There is a trade-off between creativity, fleximility, risk and reward.

This entry was posted on Wednesday, August 27th, 2008 at 9:16 am and is filed under Briefings, Management Tips, Markets. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.