What is the best way to start a business? Is a franchise the way to go?

Answer 1

It depends on what you want and how you want to start your own business.

Here are pros and cons of each way of starting a business (e.g. starting your own business from scratch, buying an existing business and getting into a franchise)

STARTING YOUR OWN BUSINESS

Pros

- You are free from contractual obligations required from franchisees, and from any precedents established by the previous business owner.
- You are able to start on a fresh, clean slate with total control on how the business is shaped and managed.
- You are free to offer a pioneering and proprietary product that could help you dominate your market.
- You can start with a bang, or at a slower pace, depending on your resources and entrepreneurial goals.
- There is no required upfront investment that you must raise; except for the level that you think your business requires to be successfully launched.
- You can choose the location you want, determine the products and service that you market, and decide whether you need employees or not.

Cons

- A new business entails greater risk than buying an established business or franchise.
- You need to determine whether a need exists for your products or service; and if it does, work to create awareness and branding.
- You will do the groundwork process by yourself - from business licenses and permits, establishing relations with suppliers, and establishing a customer base to support operations.
- May find it hard to secure financing given the lack of operating histories and inexperience of the people involved.
- May require a longer period of time to show profits, if at all.
- Entrepreneurs who decide on venturing on their own must be willing to dedicate considerable time and energy to establishing and nurturing the business.

FRANCHISING

Pros

- Risk is minimized, since a well-established franchise has a proven business method with established products or services.
- Already has well-known name that could easily bring customers to the business and provide a competitive advantage for the franchisee.
- Provides extensive assistance in terms of marketing, advertising, even managerial support.
- Cost savings on inventory items, supplies and equipment due to bulk purchase orders made by the franchisor, which in turn is passed on to franchisees.
- May provide assistance in securing financing, while some provide the funding themselves.
- Support can also be given in finding the right location, while some provide the layout, display, facilities and business techniques that have already proven successful in previous operations.

Cons

- High franchise fees required to be paid to the franchisor at the start of the franchise agreement
- Some provides support functions once the operations begin.
- Royalty fees are also required on a monthly basis even if the business is not profitable.

Answer 2

I have found that buying a franchise is essentially buying yourself a job. There are more rules to follow than an ordinary job and you have to be prepared to dedicate a lot of time and expect very little income in the first couple of years.
I looked into a couple of them and decided to start with a home business instead. I work my own hours, still get to travel and have a great deal of satisfaction in knowing that I am helping people every day both in health and wealth. I started earning an income my 2nd day and have a team built that carries me when I cannot be there. My team grew very quickly because it is a product that everyone is looking for.
I feel that I have found success.

Answer 3

Franchises are for losers . They tell you what to do , when to do it , how to do it , etc etc . If you are not capable of running a business yourself they are good i would assume .

Answer 4

i hope so