Independent businesses are hard to start up. They require the new businessperson to find financing sources, identify and determine a proper location, “set up shop,” design and place advertising (mostly only on a localized basis) — all on his or her own. The expenses involved in this type of activity are tremendous, and the risk of failure is great.
To open a franchise business has the following benefits:
combining the benefits of owning a small business with the management skills available from a big business; not having to start the business from scratch (i.e., all the equipment is known and will be furnished by the franchiser to the franchisee); a decreased chance of failure because the franchise is likely to be a carbon copy of another business, thus allowing the franchisee to take advantage of a proven track record.
I like this article, and I’ll bookmark it since I plan on running my own business soon. I can definitely use all the advice I can get! Lately I’ve been thinking about buying a business (maybe a franchise? home-based? I don’t know) instead of starting one from scratch. Any suggestions? Advice? Thanks so much.
@ Meredith – If you plan on buying a small business, I suggest checking outBizTrader.com. It’s this online global marketplace where you can buy or sell a business. You can also use it to find a lender, barter for services, or invest in a business.
I also suggest checking out business books and magazines (magazines are very up-to-date), and don’t forget to check out small business groups in your area. Not only is it good to network, but it’s also good to check out what’s available in your area.
Good luck!