Start a Business

There are pros and cons to starting your own business versus buying an existing business or a franchise.


Pros of Starting a Business

  1. Less Capital Needed
    There are less costs up front when starting a business.
  2. You Can Create It Your Way   
    There is no franchised cookie-cutter format.
  3. You Can Manage It Your Way   
    There are no franchise operation policies.
  4. Higher Initial Profits
    Extra money is not needed for the cost of purchasing an existing business to pay for up-front franchise fees or on-going franchise royalties.
  5. Ability to React Quickly to Marketplace Change
    No bureaucracy to prevent or slow down change.


Cons of Starting a Business

  1. Higher Failure Rate
    There is no franchise support. Success rate is primarily based on the owner's plan.
  2. Longer Start-up Time
    It takes longer to open versus buying an existing business or a franchise.
  3. Can Be Harder and More Expensive to Build a Customer Base
    There isn't one established as with an existing business or a franchise.
  4. Hard to Get Traditional Financing
    You are selling your own idea.
  5. Hard to Start a Business From Scratch
    You have to create everything.
  6. Lack of Experience
    For those that have not owned a business the challenges will be new and more difficult.
  7. Smaller Support System
    There won't be assistance from franchise management.

One of the biggest mistakes you can make is to hurry into business. So it is important to review the pros and cons of each business start-up option, and make sure that the business you are exploring fits your needs, experience, and financial capacity.