If you’re looking to operate your own business, it’s well worth considering the alternatives before proceeding:
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The advantages
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On the other hand
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Start your own business
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- You get to do it all your way
- You can start small and build up
- There are no goodwill fees or franchise costs to pay
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- There is more risk because your market is not proven
- Funding may be harder to get
- It can take time to get started and running profitably
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Buy an existing business
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- You already have customers
- The business is already set up with equipment, staff and suppliers
- Existing business income may make it easier to get funding
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- It’s hard to value goodwill
- Customers may not stay
- There may be hidden problems with the business or equipment
- It could cost you more to buy in than to start up
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Buy a franchise
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- You are buying into a network with an established name and systems
- You have bulk buying and joint promotional power
- You usually have access to training, advice and support
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- There may be a number of restrictions on your business
- The performance of other franchise owners could affect your business
- Set up costs may be high and there are usually ongoing fees
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