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Buy A Franchise Opportunity Or Start A New Business

When you decide that you are ready to start your own business, it is often difficult to decide if you should start a new business, or buy a franchise opportunity. Often, understanding exactly what will be required from you for both options will help you to make the right decision for you and your situation.

The first step is to know exactly what type of business you want to own. Of course you would choose a business that relates to your interests in some way, and you should take the education that you have into account as well. In some cases, if you have little or no business skill, this may strongly influence your decision to buy a franchise opportunity, since many franchise opportunities will teach you most of everything you need to know to run that particular business.

Once you know the type of business that you wish to own, the next step is to find out what franchise opportunities are available to you for that type of business. Once you know what franchise opportunities exist for your type of business, you should find out which of those are already operating in the area you wish to open your business in. In most cases, this will eliminate some franchising opportunities from your list. In order to find franchising opportunity information for the type of business that you wish to start, you can start by checking our Franchise Opportunity Directory.

Get all of the information that you can find about each franchising opportunity that is available to you for the type of business you wish to own. You will want to know what support and training is offered, all costs involved, what rights and responsibilities you have, and what rights and responsibilities the franchisor has. You should also find out how many franchises in each company close down each year - and why.

Whether you are starting a new business or buying a franchise opportunity, there are risks involved. It is important to know the advantages and disadvantages of each option.

The Advantages Of Starting A New Business:

* You don't have to follow anyone else's rules. You make your own rules.
* You don't have to worry about the franchisor not renewing the agreement later.
* You don't have to pay any royalty fees. When you have paid the money required to start your business and deduct your expenses, your profit is your profit.
* In many cases, you will have lower startup costs.

Disadvantages Of Starting A New Business:

* You are on your own. There really is no support.
* You have to know what you are doing. There won't be anyone to offer you or your employees training.
* You have to build brand name recognition over a period of time, starting at zero recognition.
* You can choose your own suppliers for your inventory.

The Advantages of Buying A Franchise Opportunity:

* You will have a certain amount of 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.

The Disadvantages of Buying A Franchise Opportunity:

* There will be rules that must be adhered to in regards to how you run your business.
* The franchisor can choose not to renew your franchise when the franchise agreement expires.
* In many cases, you will be required to use specific suppliers for your inventory.
* The startup costs are often higher that starting a new business, especially for big name brands.

There may be other advantages and disadvantages that are specific to the type of business that you wish to start. By examining the advantages and disadvantages of each option, knowing what your own personal situation is, determining what risks you are willing to take, and knowing what options are available to you, it is easier to decide which option is right for you.

GlobalBX is a FREE business for sale listing exchange that provides a confidential forum to facilitate the buying and selling of businesses with thousands of businesses and franchises for sale as well as comprehensive business information for business buyers and sellers. Members can submit business, equipment and commercial real estate loans to hundreds of direct lenders for FREE. Resources include: Buyer & Seller's Guides, Franchise Information, Business Loans, Message Boards, Newsletter, Business Brokers and Advisors.

2006 GlobalBX. All Rights Reserved.

About the Author: Find businesses for sale, franchises for sale, and business brokers at GlobalBX. Advertise your business for sale for FREE! Submit a business franchise or commercial loan, compare rates and contact multiple business lenders for FREE!

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